Detroit Welcomes Pistons and Two New Global Businesses

R.Miller.HeadshotDowntown Detroit sealed its position as the best sports venue in the country – home of four major league sports teams within a vibrant walkable, 24-7-365 urban center – when the tentative agreement to bring the Pistons to Little Caesars Arena was announced last month. Within a few days, our city also welcomed two world-class manufacturing companies, Adient and ArcelorMittal Tailored Blanks Americas Corporation, and got a glimpse of how development might proceed on the Monroe Block.

The revitalization of a great city requires many kinds of successes, and these are excellent examples, shining a positive spotlight on the whole city. But it would mean little if they didn’t also reap economic benefits that reach far into our city.

To that end, the ten-point benefits plan that the City of Detroit Downtown Development Authority negotiated commits the Pistons to hire Detroiters and use Detroit-based contractors during construction of their practice facility, and to use reasonable efforts to hire Detroit residents to operate it. In the plan the Pistons also agree to invest in recreational facilities throughout the city, mentor young people and participate in youth development programs, among other activities.

The Adient and ArcelorMittal projects collectively inject $181.3 million in private investment and bring more than 600 jobs — including 235 new ones —  to the city of Detroit. You can read more about these companies in the next article. Bedrock’s vision for how it is time to “go vertical” with new office and residential skyscrapers tells the world that Detroit has turned another corner. The formerly vacant office towers Downtown are filling up fast — and only new construction will satisfy the growing demand for prime commercial spaces in Detroit.

All of this is a “win-win” for our city and our residents as Detroit becomes a “must” market for global companies in addition to being the best sports venue in the country.

MSF Provides Grants to New Businesses Adient and ArcelorMittal

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Two new projects which will attract private investment of $215.3 million and bring 265 jobs to Detroit were approved last month by the Michigan Strategic Fund (MSF) board.

Adient, the world’s largest automotive seating supplier, will locate its operational headquarters in the Marquette Building in downtown Detroit while ArcelorMittal Tailored Blanks Americas Corporation, one of the leading steel producers in the world, will establish a new manufacturing center in the recently established industrial park near I-94.

“These projects reflect each private companies’ long-term commitment to the economic viability of Detroit,” said Steve Arwood, chief executive officer at the Michigan Economic Development Corporation (MEDC), the state’s business attraction arm that administers programs and conducts due diligence on incentive agreements with private companies.

“Adient and ArcelorMittal coming to Detroit further strengthens our city’s standing as the automotive capital of the world,” said Rodrick T. Miller, president and CEO, DEGC.

Adient recently announced it acquired the 10-story, 164,000 sq. ft. Marquette Building at 243 West Congress for its global headquarters. The Fortune 200 automotive supplier will be the first Fortune 500 company to establish a headquarters presence in Michigan since 2003.

Earlier this year, Adient became a publicly traded company when it spun off from Johnson Controls Inc. Since late October, the company has been listed on the New York Stock Exchange. In wooing Adient in a competition with the city of Milwaukee, which is home to Johnson Controls, the MEDC negotiated a $2 million Michigan Business Development Program performance-based grant. In return, Adient committed to a $97.8 private investment and the creation of 115 jobs.

ArcelorMittal Tailored Blanks is in the industrial park near I-94 that includes Flex-N-Gate, a key site to the state’s automotive industry resurgence. With the support in May of a state grant, Flex-N-Gate will invest $95 million to manufacture exterior trim components along with aluminum and steel modular stamped body chassis assemblies, among other products.

ArcelorMittal receives a $2 million Michigan Business Development Program performance grant for a project that will create a minimum of 120 jobs over five years, and a capital investment of $83.5 million.

 

Peter H. Chapman
Executive Vice President for Business Development

D2D Buyer Ready Business: Advance Plumbing Heating & Supply Company

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Advance Plumbing Heating & Supply Company is a single-source premier plumbing and heating supply distributor to plumbers, builders, interior designers, kitchen and bath dealers, and home owners who want to upgrade a kitchen or bathroom. In addition to offering reputable and top-of-the-line brands, Advance Plumbing specializes in providing fully-functional period-appropriate replacement plumbing and heating parts for Detroit’s historic homes. Advance Plumbing is a fourth-generation family-owned business that has been in Detroit for 97 years, and is led by Jeffrey Moss, president and owner.

What is the history and background of Advance Plumbing Heating & Supply Company?

The company was started in Detroit 97 years ago by my grandfather and has remained in the family, and in Detroit, ever since. Advance Plumbing continues to serve area businesses and homeowners, especially providing period-appropriate restoration plumbing supplies, even steam boilers, to many of Detroit’s historic homes. In addition to offering a wide array of reputable and leading-edge products, we source products for the specialized restoration market and from unique plumbing sources worldwide. Recently, we moved to a new headquarters to Midtown to open Detroit’s first-ever decorative plumbing showroom in the spring of 2017. Our new showroom will be open to the public and our offices and warehouse are already in place at the same location, in an historic building built in 1918 that is a little older than Advance Plumbing. Restoring the building’s façade is our contribution to beautifying Cass Ave.

What are some of Advance Plumbing Heating & Supply Company’s notable clients?

Clients with name recognition include: Detroit Medical Center, Wayne State University, University of Detroit Mercy, Motor City Casino, MGM Casino and the new Little Caesar’s Arena. Other notable clients include the many contractors and designers from the suburbs who are now working in Detroit to accommodate all the building projects related to the city’s resurgence. 

Why did Advance Plumbing Heating & Supply Company move to a new Detroit headquarters?

It’s been a dream of mine to open a decorative plumbing showroom in Detroit to offer the latest, greatest and most beautiful plumbing products to the residents and businesses of our home town. Our new location offers the space we need to accommodate every aspect of the business, in addition to the decorative showroom. In the past, we were repairing homes and businesses throughout the city. Now, we’re helping to rebuild the city by supplying to contractors who are developing new structures as part of the city’s resurgence. DEGC was very helpful throughout the entire process, especially in finding our new headquarters location, providing information on tax abatements and grants, facilitating the review and approval of the local tax abatement, and marketing our business to other Detroit-based businesses. We also received a Motor City Match grant, which supported numerous aspects of the relocation process. 

What are the benefits of connecting with other Detroit businesses?

For generations, we have had a front-row seat as Detroit moved through history, some of which was not kind to the city or its residents. Now, there is a new Detroit emerging, and a great number of services are needed to accommodate the rapid growth and development. Connecting with other Detroit-based businesses to meet these demands not only supports these businesses and keeps jobs in the city, it also helps to develop a community of business owners who are dedicated to helping Detroit prosper again.

Lily Hamburger
Small Business Development Manager

DDA Approves Integrated Development Plan for Three Downtown Sites

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The City of Detroit Downtown Development Authority (DDA) recently approved a term sheet for a plan that will complete the circle of development around Campus Martius Park, including the Monroe Block, the block immediately northeast which contains the historical National Theatre building and the Bates Garage.

The Monroe Blocks conceptual design plan envisions a mixed-use development consisting of office, residential and retail space with ample parking and public spaces. The area is bounded by Randolph Street, Bates Street, Cadillac Square and Monroe Avenue.

The first phase, the Monroe Block, would contain 600,000 sq. ft. of space, including 35,000 sq. ft. of retail space, in a 20-story office tower. The second phase, the National Theatre block and Bates Garage, would contain 225,000 sq. ft. of space, including 25,000 sq. ft. of retail space, in a 16-story residential tower.

Rosko Development Company LLC, an affiliate of Bedrock Real Estate Services, is the developer.

Moddie Turay
Executive Vice President of Real Estate and Financial Services

Motor City Match Looking to Jumpstart 2017 with More Small Business Growth

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As the Motor City Match program begins to look forward to 2017, it’s hard not to be optimistic for the new year. The program has helped make Detroit one of the most welcoming cities in the nation when it comes to supporting small businesses.

Since its inception, Motor City Match has supported nearly 500 businesses. Two-thirds of those businesses are owned by Detroiters and more than 70 percent are minority-owned. Not all of the businesses are open yet, but they are all actively making progress. In the coming months, we will see several more coffee shops, art centers, health care facilities, small manufacturers, and service providers open or expand in the heart of Detroit neighborhoods.

The program has awarded a total of $2.3 million in grants to date. When combined with each entrepreneurs’ personal investment and traditional financing, the grants have helped leverage a total of $14 million invested in Detroit’s neighborhood corridors. Several areas of the city are quickly becoming hot spots for Motor City Match businesses, including Jefferson-Chalmers, West Village, Corktown and the Avenue of Fashion at Livernois and 7 Mile.

Entrepreneurs and property owners still interested in applying for support through Motor City Match have one more opportunity before the end of the year. Applications will be open from December 1, 2016 through January 1, 2017.

There will be an information session on December 20 to answer questions about the application process. The event will be held from 6:00 – 8:30 p.m. at the Bel Air Luxury Cinema, 10100 E. 8 Mile Rd., Detroit. To register for the information session and review Motor City Match qualification requirements and program guidelines, please visit www.MotorCityMatch.com.

Michael Forsyth
Director of Small Business Services