The $60 million Michigan Innovation Fund (MIF), a program meant to help early-stage startups get capital and provide Michigan entrepreneurs with support services, got the go-ahead Tuesday from the Michigan Strategic Fund.
The MIF program was initially approved through legislation signed into law by Gov. Gretchen Whitmer in January.
“I think what’s interesting is that it represents the state’s largest vote of confidence in Michigan entrepreneurs in over two decades. These entrepreneurs are the frontline Michiganders toiling away day and night to build new businesses and grow jobs across our state,” said Ben Marchionna, Michigan Economic Development Corporation Chief Innovation Ecosystem Officer.
ID Ventures Managing Director Patti Glaza said the bipartisan effort will go to high-tech and high-growth Michigan companies. She pointed to several companies that have been helped with funding from the Detroit-based venture capital firm.
Glaza said the original goal of the funding was $150 million, and they were still looking to get between $50 million to $100 million more for long-term sustainability and circulation of venture capital.
“While it took us a few years to get the fund through the legislation, the effort has had a much larger effect than I think any of us anticipated. The startup ecosystem across the state is collaborating at a new level,” she said.
The board unanimously approved the delegation of authority and program guidelines.
The MSF also approved a $15 million allocation and the change of name to the Build Ready Sites program. The program has been used by the state to develop shovel-ready sites for large and medium areas that would be used to compete for businesses.
The program would now be known as the Michigan Ready Sites Program, and the $15 million would come from the Business Attraction and Community Revitalization Programs and the Build Ready Sites program.
MSF Approves $300 Million to 4 Projects
The MSF board approved a $15 million Michigan Business Development Program performance-based grant and a State Essential Services Assessment tax exemption worth nearly $1 million for a new health facility that would be built in downtown Detroit.
The Grand Rapids-based Bold Advanced Medical Future (BAMF) Health would be building a 45,000-square-foot health center that would be used for molecular imaging to diagnose and treat diseases with radiation and radiopharmaceuticals.
“BAMF’s new facility will help them better serve Michigan patients. It will reinforce Michigan’s reputation as a leader in health care and the best place to pioneer cutting-edge technology that not only grows our economy but makes peoples’ lives better,” Whitmer said.
The board also approved two Transformational Brownfield Plans that allow for tax capture over 30 years for a developer.
Parkland Properties of Michigan was given an incentive worth $159,598,389 consisting of four opportunity zone tax captures and funds that would be returned to the Muskegon Brownfield Redevelopment Authority.
The development in Muskegon would create 571 residential areas, a parking garage and nearly 75,000 square feet of commercial space at the former site of the Shaw Walker Furniture Company.
The second Transformational Brownfield Plan was given to Middlepointe Investment Group LLC and the Southfield Brownfield Redevelopment Authority. The package would be worth $131,822,436 in tax breaks to create 577 residential units, 42,665 square feet of commercial space and a parking structure.
The project would be done at a long-vacant space in downtown Southfield.
A project to turn a derelict parking lot in Ferndale into a four-story, 72 resident unit mixed -use property with 1,585 square feet of commercial space would get a $3.95 million Michigan Community Revitalization Program loan.
“Today’s projects will build 1,220 homes across Muskegon, Southfield, and Ferndale and make these cities even better places to live, work, invest, or visit. With support from the MSF board, we’re turning empty spaces into vibrant places, adding new housing, commercial space and parks,” Whitmer said.
Article courtesy MIRS News for SBAM’s Lansing Watchdog newsletter
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