Despite the economic downturn, Michigan is seeing a bright spot in the state with hundreds of job creations, booming new businesses and a concerted effort to keep the state financially viable no matter the forecast.
Others are seeing Michigan’s economic boost, too.
According to Bloomberg, over the last two years Michigan experienced its best economic recovery in history. Michigan is #1 nationwide based on equally-weighted measures of employment, personal income, home prices and stock market performance of publicly-traded companies. The state is also in the midst of a manufacturing boom, having added 21,600 auto jobs and counting since Governor Whitmer took office and many other high-skill, in-demand jobs in fields ranging from semiconductor chips to software and agriculture. Michigan is a standout for investors with bonds returning at better rates than ever.
New Workforce
Beyond auto jobs, an influx of new occupations is taking up residence in Michigan ranging from life sciences to construction workers.
Recently, Governor Gretchen Whitmer joined the Michigan Economic Development Corporation (MEDC) in announcing Michigan Strategic Fund (MSF) approval of projects including a business expansion by a global life sciences provider in Muskegon, community revitalization projects in Detroit, Battle Creek and Sault Ste. Marie and support that boosts Michigan’s agribusiness industry. The projects approved in mid-June represent a total capital investment of nearly $500 million.
“Today’s approvals will continue to grow Michigan’s economy by creating good-paying jobs for Michiganders while expanding on our leadership in the life sciences and agribusiness sectors,” said Whitmer in a press release. “We will continue to put Michiganders first by investing in our talented manufacturing workforce, helping our communities build thriving downtowns and economies and providing opportunities for innovative businesses to grow and thrive here in our state.”
From bringing 200 high-wage jobs to the Muskegon area (through the Michigan Strategic Fund) to constructing a new mixed-use affordable housing building in Detroit’s Mexicantown neighborhood (the Bagley + 16th Redevelopment Project), Michigan has a lot underway.
The building will include the construction of a four-story, mixed-use building in the Mexicantown neighborhood. When completed, the project will consist of four retail bays on the first floor and 78 mixed-income residential units on the top three floors. The project will also include public improvements such as sidewalks, parking and public seating with a barbecue pit.
The project is expected to generate a total capital investment of $22.8 million, supported by a $3.7 million Michigan Community Revitalization Program performance-based loan. The city of Detroit Brownfield Redevelopment Authority also received MSF approval of $647,991 in state tax capture to reimburse for eligible brownfield-related activities.
The project will transform a long-vacant property into a vibrant development that will bring affordable housing options and add density directly adjacent to an employment center at the quickly developing Michigan Central Innovation District. It is also expected to act as a catalyst for future development in the neighborhood and will create foot traffic and retail demand along the corridor.
“We would like to express our gratitude to the Michigan Strategic Fund Board, the city of Detroit and their staff. We are exceptionally excited to bring The Brooke on Bagley which will include workforce housing to Hubbard Richard and Mexicantown. This is such an amazing neighborhood, and we are grateful for the relationships and partnerships we have developed with the Hubbard Richard Residents, community organizations and our funding partners,” said Woodborn Partners President and Chief Executive Officer Clifford A. Brown. “This represents the fourth neighborhood within the city of Detroit in which Woodborn has made an investment and we remain committed to the state of Michigan, the city of Detroit and its neighborhoods.”
The Detroit Economic Growth Corporation committed to providing an equipment loan of $200,000 and a real estate loan of $911,400. The city of Detroit Brownfield Redevelopment Authority has committed to a $632,439 loan from its Revolving Loan Fund and a $100,000 grant. The city of Detroit will also be participating in the local portion of the TIF valued at $1,415,290 and a 10-year Public Act 210 tax abatement valued at $1,892,151. The property was previously city of Detroit-owned land, sold to the development team at a reduced rate to encourage development. The city of Detroit is engaged with MEDC’s Redevelopment Ready Communities (RRC) program.
“The Detroit Economic Growth Corporation is pleased to see the Michigan Economic Development Corporation support this project. DEGC is committed to inclusive economic development,” said Detroit Economic Growth Corporation Executive Vice President of Economic Development & Investment Services Kenyetta Hairston-Bridges. “As part of this commitment, we are proud to support Detroit-based and minority-owned development companies, especially for projects that provide access to affordable housing for Detroiters and will continue to bring jobs to the city.”
The New Deal
Jobs are not the only boost for Michigan’s economy. In late June Whitmer and legislative leaders announced a balanced, bipartisan 2023 budget that will not raise taxes.
“This is our fourth collaboration on a fiscally-responsible budget delivers on the kitchen-table issues that matter and lowers costs for families struggling with inflation. I am proud that the budget will grow Michigan’s economy and workforce, make record investments in every student and classroom, protect public health and public safety, expand mental health resources and empower working families and communities,” Whitmer said.
Speaker of the House Jason Wentworth agreed. “Between the looming recession and inflation hitting families hard, we absolutely had to nail this budget plan to give everyone in Michigan the support they need,” said Wentworth (R-Farwell). “I’m glad we were all able to take our time and work together across party lines to build a real plan and move Michigan forward. Our budget prioritizes school funding, road repairs, healthcare access, job training, and even sets aside billions for tax relief. This plan has everything Michigan families need to get ahead and stay ahead in the coming year.”
Nicole Sherard-Freeman, group executive, Job, Economy, and Detroit at Work, City of Detroit, said previously that there is an “interesting contradiction” amid a booming metropolitan city like Detroit with job growth and more.
“At least in Detroit, there is no other place you will find as many cranes in the air or many construction boots on the ground [which] mean more jobs are coming … across so many sections,” Sherard-Freeman said, adding that urban and rural areas still need help. “When you look across rural areas there is no question that the city is a contradiction; the state is a contradiction and so many solutions many of us have tried particularly in Detroit [can] apply across the state.”
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