Article courtesy of MIRS for SBAM’s Lansing Watchdog newsletter
mic Opportunity (LEO) spent significant time reviewing economic development spending, with particular focus on the state’s SOAR program and how it fits into Michigan’s broader strategy to attract and retain major business investments.
Officials from the Michigan Economic Development Corporation (MEDC) told lawmakers SOAR remains a central tool in competing with other states for large-scale projects, even as tariffs, economic uncertainty and global market conditions have slowed some investment decisions.
The words come as legislators from both parties have increasingly soured on the program. Republicans don’t like how state money is being used to selectively pick “winners” and “losers” while Democrats see the hundreds of millions of dollars spent to benefit big corporations going to programs that could help poor and working families.
Sen. Mallory McMorrow (D-Royal Oak) pointed to past allocations, including $150 million for site preparation in Mundy Township tied to SANDISK to build microchips before the deal fell through. She asked whether continued investment at that scale remains justified given current economic conditions.
Armstrong responded that while some projects do not come to fruition, the state’s overall strategy is focused on long-term competitiveness. She said Michigan has identified roughly two dozen sites through its “MI Sites” program that require infrastructure upgrades to become viable for business attraction.
MEDC Chief Operating Officer Christin Armstrong said the state continues to see strong interest from companies, but noted that tariffs, global trade tensions and the approaching election cycle have created a more cautious investment environment.
“We’ve seen a little bit of a slowdown in the pipeline,” Armstrong said, adding that companies are taking more time before committing to major projects.
Despite that, Armstrong emphasized that Michigan must remain competitive by continuing to prepare sites and offer incentives through programs like SOAR, which is designed to support large job-creating projects and leverage private investment.
Those investments, she said, often involve water, wastewater and road improvements that benefit communities regardless of whether a specific project lands.
“The demand for investment-ready sites continues to outpace supply,” Armstrong said, noting that preparing sites is essential to attracting large employers.
Lawmakers also heard that the state currently has hundreds of millions of dollars remaining in funds tied to site readiness and related economic development efforts, raising questions about how additional appropriations would be used.
Supporters of the strategy, including Mark Huizenga (R-Walker), argued that programs like SOAR and site readiness are necessary long-term investments that help Michigan compete nationally. He pointed to recent projects in West Michigan expected to generate hundreds of millions in private investment and new jobs.
“These leverage projects are absolutely critical,” Huizenga said, emphasizing that infrastructure investments create “landing zones” for future development.
Beyond large-scale attraction efforts, MEDC officials highlighted broader economic development work, including support for small businesses, entrepreneurship and community revitalization. Still, the SOAR program and related incentives dominated the policy discussion as lawmakers weighed competing budget priorities.
The exchange underscored an ongoing debate in Lansing over how aggressively the state should invest in business attraction versus other economic and social priorities, particularly in a tighter budget year.
MEDC officials maintained that without tools like SOAR, Michigan risks losing major projects – and the jobs that come with them – to other states offering more aggressive incentives.
“We need to keep our foot on the gas to leverage private investment through investment in our communities,” said MEDC Chief Financial Officer Calvin Myers.
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