Five Michigan counties receive state transportation economic

development grants to help support 356 jobs

Contact: Barbara Hicks, MDOT Office of Communications,
hicksb3@michigan.gov
517-335-2482
Agency: Transportation


August 6, 2014 -- The Michigan Department of Transportation (MDOT) is awarding state
transportation economic development grants to five Michigan counties. The five Transportation
Economic Development Fund (TEDF) Category A grants totaling $2,523,565 will leverage
$15,398,586 in private investment at a private/public ratio of 6-to-1. The total estimated cost of the
projects is $8,545,289, including $6,021,724 (70 percent) in matching funds from private developers,
cities, a township and local road agencies.
"The TEDF program helps fund infrastructure improvements that encourage companies to locate
plants and facilities in our state," said State Transportation Director Kirk T. Steudle. "The grants
announced today will help create or retain 356 jobs in northern Michigan, southwest Michigan, and
the Metro Detroit area."
Enacted in 1987 and reauthorized in 1993, the TEDF helps finance highway, road and street
projects that encourage private investment in Michigan resulting in job creation or retention. TEDF
"Category A" or "Targeted Industries Program" grants provide state funding for transportation
improvements that will help accommodate increased traffic and provide commercial routes that are
safe and more efficient for new and expanding companies. Eligible road agencies include MDOT,
county road commissions, cities and villages. More information about the program is available online
atwww.michigan.gov/tedf.
APPROVED CATEGORY A PROJECTS BY COUNTY
Oakland County
Magnetti Marelli is an international company that designs and produces high-tech systems and
components for the automotive industry. It has 36,000 employees, 86 production units, 12 research
and development centers, and 15 application centers. Magnetti Marelli has leased a 125,000-
square-foot building on Bow Pointe Drive in Independence Township, and invested $7,200,000 in
new equipment to produce exhaust manifolds and catalytic converters for Fiat Chrysler. This will be
the company's first manufacturing facility in Michigan. While this is a highly automated process, 86
new jobs will be created. The location was chosen for its proximity to Fiat Chrysler and I-75 for
accommodating the company's just-in-time delivery needs. However, the Sashabaw/Waldon Road
intersection is heavily congested, as is the I-75/Sashabaw Road interchange built in the 1960s.
The project will include additional turn lanes at the Sashabaw/Waldon Road intersection and needed
upgrades to the Sashabaw Road/I-75 interchange. By increasing capacity and reducing congestion,
these improvements will improve the company's ability to ship products in a timely and efficient
manner and also benefit the McLaren Health Care development on Bow Pointe Drive near Magnetti
Marelli. McLaren has added significant traffic to the area with the construction of a new cancer
center and medical office building, and plans to continue developing a medical complex at the site.
The estimated cost of these transportation improvements is $4,311,720, including $672,000 in state
TEDF funds and matching funds of $1,139,720 from Independence Township, $1,000,000 from the
Road Commission for Oakland County, and $1,500,000 from McLaren Health Care.
Otsego County
Aggressive Manufacturing Innovations (AMI), Inc. manufactures tubular products for the automotive
industry. It recently purchased a vacant building on O'Rourke Boulevard in Gaylord and is investing
$3,445,000 in new equipment and building upgrades. The expansion will result in the creation of 101
jobs. AMI selected Gaylord over competing locations in Indiana and Mexico, primarily to remain
close to its other facilities in Lewiston and Sault Ste. Marie.
The company's main freight route between Sault Ste. Marie and Gaylord is I-75, via M-32 and
Dickerson Road. The Dickerson Road surface is currently in poor condition, which an increase in
freight and employee traffic will accelerate. Additionally, the lack of turn lanes at the Dickerson
Road/Van Tyle Road and Dickerson Road/O'Rourke Boulevard intersections could present traffic
flow problems. To ensure efficient all-season access, the city will reconstruct Dickerson Road from
100 feet south of Van Tyle Road to 400 feet south of O'Rourke Boulevard. The project also will
include installing curb, gutter and storm drains, minor road widening, the addition of center turn lanes
at the Dickerson Road/Van Tyle Road and Dickerson Road/O'Rourke Boulevard intersections, and a
right-turn lane at O'Rourke.
The estimated cost of these transportation improvements is $755,477, including $566,591 in state
TEDF funds. The project includes $188,886 in match from the city of Gaylord.
St. Clair County
Magna Exteriors and Interiors USA, Inc. is a wholly owned subsidiary of Magna International, a
leading global automotive supplier with 315 manufacturing operations and 82 product development,
engineering and sales centers in 29 countries. It recently obtained two new contracts from
automotive manufacturers. To meet customer production requirements, the company is investing
approximately $2.2 million dollars in its facility on Puttygut Road in China Township and hiring 100
new employees.
Magna Interior Trim Components accesses I-94 by way of King Road and Fred Moore Highway.
King Road is currently experiencing rutting and does not have any paved shoulders. Southbound
King Road traffic turning left onto eastbound Puttygut Road must do so by turning from a through-
lane. Fred Moore Highway, built in the 1960s, is rapidly deteriorating and requires frequent patching.
The St. Clair County Road Commission will resurface King Road from Puttygut Road to Fred Moore
Highway and add a 3.5-foot paved shoulder to each side of the road. At the King Road/Puttygut
Road intersection, the Road Commission will add a dedicated left-turn lane on southbound King
Road for vehicles accessing Magna's facility on Puttygut Road, and reconstruct Fred Moore Highway
from Carriage Lane to 3,125 feet east of Allington Road. These changes will provide new, smoother
driving surfaces, extend the life of these all-season roads, and improve safety.
The estimated cost of these transportation improvements is $3,134,192, including $1,066,674 in
state TEDF funds. The project includes $2,067,518 in match from the St. Clair County Road
Commission.
St. Joseph County
VCI, Inc. is a racking systems and parts manufacturer that serves the aerospace, automotive and
energy industries and the military. The company recently located to a vacant building on West
Dresser Drive in Sturgis and is investing $1,600,000 in new equipment. The company will create 20
jobs and retain an additional 20 jobs. The company also had considered Easley, South Carolina, for
its expansion.
West Dresser Drive provides close access to US-12, which was a major consideration when VCI
chose to remain in Michigan and expand. The roadway surface is currently in poor condition and the
increase in freight and employee traffic will accelerate the deterioration. There are numerous
potholes, forcing motorists to cross into the oncoming lane to avoid damage. To ensure continued
all-season access and provide better access to US-12, the city of Sturgis will resurface West
Dresser Drive from Broadus Street to approximately 1,150 feet west of Broadus Street.
The estimated cost of these transportation improvements is $164,900, including $76,300 in state
TEDF funds. The project includes $88,600 in match from the city.
Wexford County
Avon Protection Systems designs and manufactures respiratory protection systems for the military,
first-responders, and industrial markets. As part of a previously announced expansion, the company
is transferring all current manufacturing from its facility in Lawrenceville, Georgia, to its location in
Cadillac, investing $925,000 and creating 29 new jobs.
The company's facilities are located on 7th Street, which provides convenient access to state
trunkline. Heavy traffic has caused the street to deteriorate, which an increase in traffic will
accelerate. To assure continued access and to enable full truckloads during frost laws, the city of
Cadillac will mill and resurface 7th Street from 3rd Avenue to 5th Avenue, and mill and resurface the
4th Avenue/8th Street intersection. The project also includes minor curb and driveway approach
repairs and the installation of solar-powered pedestrian signals, signs and crosswalk markings on
7th Street.
The estimated cost for these transportation improvements is $179,000, including $142,000 in state
TEDF funds. The project includes $37,000 in match from the city, Avon Protection Systems, Avon
Automotive, Rexair LLC, and AAR Corp.
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