Michigan Aggregates Association

Transportation economic development grants will support more than 880 new jobs in Metro Detroit

FOR IMMEDIATE RELEASE
THURSDAY, OCTOBER 26, 2017
CONTACT: Michael Leon, TEDF Program Manager, MDOT Office of Economic Development, 517-241-2568

Transportation economic development grants will support
more than 880 new jobs in Metro Detroit
 

October 26, 2017 — The Michigan Department of Transportation (MDOT) has awarded state Transportation Economic Development Fund (TEDF) Category A grants totaling $2,760,489 to the City of Detroit and the Road Commission for Oakland County, resulting in a total of 882 new jobs to those areas and help leverage almost $279 million in total private investment, at a private/public investment ratio of nearly 101-to-1.

City of Detroit

             ArcelorMittal Tailored Blanks Americas Corp. is in the process of renovating an existing building located on Mt. Elliott in the city of Detroit. Once operational, the company will produce tailored laser-welded blanks to be shipped to original equipment manufacturer (OEM) and tier 1 stamping plants for use in vehicle bodies. This facility will be the company’s first in Michigan and will serve as its North American headquarters. ArcelorMittal Tailored Blanks Americas Corp. chose this location over the possibility to expand at an existing location in Ohio due to the building’s proximity to its customer base.

Flex-N-Gate is a top global supplier of exterior trim components, aluminum and steel modular stamped body chassis assemblies, lighting, and other automotive OEM products. The company needed to expand and considered locating their new facility in Ontario, Indiana or Ohio. Flex-N-Gate chose to construct this new manufacturing facility on Georgia Street in the city of Detroit due to its proximity to the company’s primary customers.

The condition of Mt. Elliott from Georgia Street to Conant Street is substandard. To address this, the City of Detroit will reconstruct Mt. Elliott from Georgia Street to I-94. The city will also add turn lanes at Georgia Street and Miller Street to allow for improved truck access.  The road infrastructure projects were significant factors in both companies decision to locate at the I-94 industrial park. Arcelor Mittal Tailored Blanks American Corp. is investing $83,508,166 to renovate an existing building and will create 120 new jobs. Flex-N-Gate is investing $160,000,000 to construct its new facility, which will result in 400 new jobs.

The total cost of this project is $6,408,731, including $2,424,208 in TEDF Category A funds and $3,984,532 from the City of Detroit.

“For a manufacturing facility like ours, truck traffic and employee traffic over a sturdy infrastructure of roads is of utmost importance,” said Bill Beistline, Flex-N-Gate vice president. “It is critical that the roads are wide enough and in good enough condition to handle the flow of the increased traffic. The Mt Elliott Street project is a critical element to the success of not only the Flex-n-Gate project, but will also serve as a sign to other companies that Detroit and the state of Michigan will get behind projects of this magnitude and insure that all aspects of improvement are thought of and in place.”

“ArcelorMittal Tailored Blanks Americas would like to thank the City of Detroit and MDOT for working together on the reconstruction of Mt. Elliott from Georgia Street to I-94,” said Ben Orler, ArcelorMittal Tailored Blanks Americas Corp. chief operations officer. “This project will greatly enhance our daily business needs and future requirement to grow the business. We also believe that this will be an asset to the surrounding area. We appreciate the support shown both by the city and state for our investment in the city, and are very pleased to be able to locate our facility at this location, which is of close proximity to our customers.”

Oakland County

             Magneti Marelli Automotive Lighting, LLC develops and produces automotive exterior lighting products for all major automotive manufacturers. The company needed to expand and considered locating the expansion in existing facilities in either Mexico or Tennessee. Due to its proximity to the company’s main customer, the Fiat Chrysler Automobiles Sterling Heights Assembly Plant, Magneti Marelli chose to convert an Independence Township facility to manufacture automotive exterior lighting and to transfer the existing automotive exhaust systems manufacturing to a facility in Auburn Hills.

To improve the reliability of access to the Independence Township facility, the Road Commission for Oakland County (RCOC) will construct a number of improvements to Sashabaw Road. The RCOC will widen both of the crossovers from southbound Sashabaw Road to northbound Sashabaw Road just south of Bow Pointe Drive and the North Private Drive. The RCOC will also add loons on northbound Sashabaw Road to accommodate turning trucks at Bow Pointe Drive and North Private Drive. Magneti Marelli plans to invest $35,000,000 in the Independence Township site, resulting in 362 new jobs.

The total cost of this project is $452,949, including $336,281 in TEDF Category A funds and $116,668 from the Road Commission for Oakland County and Independence Township.

Enacted in 1987 and reauthorized in 1993, the TEDF helps finance highway, road and street projects that are critical to the movement of people and products, and getting workers to their jobs, materials to growers and manufacturers, and finished goods to consumers.

TEDF “Category A” or “Targeted Industries Program” grants provide state funding for public roadway improvements that allow road agencies to respond quickly to the transportation needs of expanding companies and eliminate inadequate roadways as an obstacle to private investment and job creation. Eligible road agencies include MDOT, county road commissions, cities and villages. More information about the program is available online at www.michigan.gov/tedf.

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