onomic development update - muskegon area first · economic development update this economic...

To learn more about economic development in Muskegon County, please visit www.muskegonareafirst.org or call our offices at 231-722-3751

Economic Development Update

onomic Development Update

October 2016

2017 shaping up to be a good year for

development in downtown Muskegon

Results from the Port Infrastructure and

Organizational Analysis are favorable for Port

of Muskegon Development

Muskegon, MI - In September 2016, the West Michigan Shoreline Regional Development Commission (WMSRDC) released the Port of Muskegon Infrastructure and Organizational Analysis. The study was completed by Martin Associates, in conjunction with sub consultant, JH Consulting. The study includes a conditions assessment of the Port facilities as well as other transportation assets such as highway, rail

and airport. Read more.

Muskegon Community College Downtown Center picture

taken by Darryl Todd, Muskegon Area First

Muskegon, MI – Seven manufacturers in Muskegon County applied for and were approved for an Industrial Facilities Tax Exemption (IFT) Certificate, commonly known as an Industrial Property Tax Abatement this year. Combined, these companies are expected to add 165 new jobs and invest $26.45 million in the area. These manufacturers will get a 50% tax reduction on new construction or building improvements for 12 years. Read more.

Muskegon area manufacturers use tax

abatements to create 165 jobs and $26.45

million in investments this year

Muskegon, MI—Construction zones should be cropping up across down-town Muskegon during the 2017 if the current list of potential developments come to fruition. “This is a very dynamic and important time in downtown Muskegon’s redevelopment from the closure and demolition of The Muskegon Mall in 2001”, says Dave Alexander, Executive Director, Downtown Muskegon Now. Construction is already underway on three key projects repre-senting over $24 million in investment. Read more.

Picture of GE Aviation provided by Lisa Brown, Michigan Economic

Development Corp.

http://www.muskegonareafirst.org



This Economic Indicators Dashboard provides insight into the economic health of a local community. The purpose of this dashboard is to

give an “at a glance” look at some of the leading indicators for Muskegon County.

Sources: Department of Labor & Statistics, Muskegon County Clerk, Professional Technical Assistance Center (PTAC), Burning Glass, West Michigan Works! and the Wall Street Journal

onomic Indicators Dashboard

Labor Market Workforce Muskegon County

Business Registrations

Muskegon County

700 No. of

Companies Posting Jobs

Online Muskegon County 3rd Quarter 2016

Top 10 Companies Posting Jobs Online

Stock Market Indexes

Unemployment Rate

Muskegon County

2,450 No. of Online

Job Postings Muskegon County 3rd Quarter 2016

Alcoa Howmet Port City Group

Muskegon County Davita

HCR ManorCare Mercy Health

Meijer DJ’s Landscape

Harbor Freight Tools

Summit Lawn Care & Snow Plowing

Sept 2016 78,567 Aug 2016 79,464 Jul 2016 79,900 Sept 2015 76,340

Sept 2016 4.3% Aug 2016 4.8% Jul 2016 5.8% Sept 2015 4.6%

Sept 2016 46 Aug 2016 44 July 2016 47 Sept 2015 46

Sept 2016 3.50% Aug 2016 3.50% Jul 2016 3.50% Sept 2015 3.25%

Government Contracts Awarded

Upcoming Events

November 11, 2016 How to Buy or Sell a Business Learn about the many aspects of

buying or selling a business Hosted by: Small Business

Development Center Location: Muskegon Innovation Hub

200 Viridian Drive, Muskegon Time: 8:00 AM—12:00 PM

More Information: Click Here

January 24, 2017 5 X 5 NIGHT

Five Ideas, Five Judges, Winner takes Five Thousand Dollars

Hosted by: Start Garden Location: Muskegon Innovation Hub

200 Viridian Drive, Muskegon Time: 5:00 PM

Entry Begins: Nov30 Entry Deadline: Jan 17

Registration: 5 x 5 Night

January 27, 2017 Save the date:

2017 Economic Forecast Hosted by: Muskegon Lakeshore

Chamber of Commerce Location: Muskegon Holiday Inn

939 Third Street, Muskegon Time: 7:30 AM - 9:00 AM

January 27, 2017 Basics of Importing

Learn how to import goods effectively and efficiently

Hosted by: LR International Location: Van Andel Global Trade Center

201 Front Ave SW, Grand Rapids Time: 8:30 AM - 3:30 PM

More Information: Importing Basics

Dow Jones (↓) 18161.19

S&P 500 (↓) 2126.41

Nasdaq (↑) 5190.10 October 28, 2016

Prime Interest Rates

3rd Quarter 2016 $34,216,854

3rd Quarter 2015

$40,353,416


https://clients.sbdcmichigan.org/workshop.aspx?ekey=72360012

http://5x5night.com/member/register

https://www.gvsu.edu/vagtc/event-view.htm?eventId=78EFFE1A-AAAB-9968-AC06D86AC9479665




Muskegon area manufacturers use tax abatements to create 165 jobs and over $26 million in investments this year

Muskegon, MI – Seven manufacturers in Muskegon County applied and were approved for an Industrial Facilities Tax Exemption (IFT) Certificate, commonly known as an Industrial Property Tax Abatement this year. Combined, these companies are expected to add 165 new jobs and invest $26.45 million in the area. These manufacturers will get a 50% tax reduction on new construction or building improvements for 12 years.

Muskegon Area First’s involvement with a number of these companies included either processing the IFT application, assisting companies with preparing the application, or

consulting companies as to specific questions on the application or the application process itself. The companies

receiving tax abatements are:

Company Municipality Job Creation / Investment

Ameriform Acquisition dba KL Outdoor Norton Shores 8-10 jobs / S1.4 million GE Aviation (Johnson Technology Inc.) Norton Shores 100 jobs / $14.5 million La Colombe Coffee Roasters Norton Shores 37 jobs / $1.5 million Noble Manufacturing, LLC Norton Shores 3 jobs / $2.0 million M. Argueso & Co. Inc. dba paramelt Norton Shores 8 jobs / $4.9 million Production Fabricators, Inc. Muskegon 5 jobs / $850,000 Scott Meats, Inc. Muskegon Heights 2 jobs / $1.3 million

Tax abatements, authorized under Public Act 198 of 1974, are a popular economic development tool for municipalities to help entice industrial business attraction and expansion. The objective of the tax abatement is provide incentives for eligible businesses to make new investments in Michigan. With a larger tax base, local governments are able to offer more or improved services to its citizens. The abatements are not a loss in tax revenues but are actually a 50% increase over currently collected taxes. At the end of the abatement period, the company pays 100% of the property taxes. The reduction can also help relieve some financial pressure for business owners as they pay off construction or other costs incurred with the expansion.

As Muskegon Area First meets with companies, one of the goals is to make sure they are aware of incentives that can help with their projects and explain application requirements. “We encourage businesses to reach out to us before they start building or securing permits”, says Darryl Todd, Business Development Specialist for Muskegon Area First. “We want to make sure businesses are aware of what needs to be done to receive an abatement and the earlier we are involved in the process, the better”.

October 2016

Picture of GE Aviation provided by Lisa Brown, Michigan Economic

Development Corp.

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October 2016

2017 shaping up to be a good year for

development in downtown Muskegon

Muskegon, MI—Construction zones should be cropping up across downtown Muskegon during 2017 if the

current list of potential developments come to fruition.

“This is a very dynamic and important time in downtown

Muskegon’s redevelopment from the closure and demoli-tion of The Muskegon Mall in 2001”, says Dave Alexander, Executive Director for Downtown Muskegon Now. Con-struction is already underway on three key projects

representing over $24 million in investment:

The Muskegon Community College’s (MCC) downtown center is being created out of the former Muskegon Chronicle and adjacent Masonic Temple buildings along Clay Avenue from Third to Fourth streets. MCC hopes to have its

industrial technology department and entrepreneurial studies classes in the downtown center by the 2017 fall

semester.

Also under construction are the Heritage Square Townhomes being developed and built by Gary Post and his Port City Construction Company. Units along Clay Avenue are being completed from Second to First streets.

Finally, development of the Muskegon Lake Terrace Point Landing residential neighborhood continues with nearly a dozen lots being sold and beach infrastructure being completed.

Other projects expected to be under construction in 2017 are the Berkshire Muskegon Senior Housing Center, a 79-unit affordable senior residential development at First and Clay; the conversion of the sixth and seventh floor of the Terrace Plaza office building into market-rate apartments; and the first public dog park in Muskegon County to be located down-town at Shoreline Drive and West Western Avenue.

Further commercial-residential developments could come from construction of HighPoint Flats apartments in the former Comerica Bank building, Watermark Center’s third and fourth phases with residential apartments and a recreational-entertainment center, a commercial-office-residential redevelopment of the former Ameribank building and a potential new six-story building on the vacant lot at Second and Western known for its beach volleyball this past summer. Overall, the estimated total investment of the 10 projects identified is between $90 and $95 million. This consists of 7 mixed use developments in the planning stages that could bring up to 350 units of market-rate apartments.

Muskegon Community College Downtown Center picture taken by Darryl Todd,

Muskegon Area First





October 2016

2017 shaping up to be a good year for development in downtown Muskegon

(cont’d)

Downtown Muskegon Now (staffed by Muskegon Area First) encourages new development and promotes the revitaliza-tion of downtown Muskegon to become an attractive, vibrant, and profitable waterfront location.

If just a fraction of the downtown Muskegon projects being planned and designed are under construction in 2017, next year will truly be Watch Muskegon – Watch Us Build!

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Results from the Port Infrastructure and Organizational Analysis are favorable for Port of Muskegon Development

October 2016

Muskegon, MI - In September 2016, the West Michigan Shoreline Regional

Development Commission (WMSRDC) released the Port of Muskegon

Infrastructure and Organizational Analysis. The study was completed by Martin Associates, in conjunction with sub consultant, JH Consulting. The study

includes a conditions assessment of the Port facilities as well as other

transportation assets such as highway, rail and airport.

The first part of the study is a cargo market analysis which focuses on traditional cargoes where the Port currently

competes, particularly the historical flows of base cargoes which include coal, aggregates, cement and salt. It also

assesses the Port’s current market conditions and future outlook. In addition, potential new non-traditional cargo market

opportunities for the Port are discussed. While the study concludes that the total Great Lakes tonnage of base cargo

declined from 2006 - 2014, pursuing non-traditional market opportunities may hold some promise. The potential for cross lake shipping to Wisconsin and other ports that could help relieve some of the traffic congestion in Chicago and

exports of agricultural products to Asian and European markets may be possible.

The second part analyzes the prospective structure of a Port authority. The assessment includes a review of other port structures, particularly those that deal with interaction with private terminals. The analysis discusses the benefits and challenges of the proposed language changes to Michigan’s existing Hertel-Law-T. Stopczynski Port Authority Act (PA 639) as introduced by State Representatives Holly Hughes, Wendell Byrd, Jason Sheppard, Marcia Hovey-Wright, and Bill

LaVoy under HB5651. The bill passed the Michigan House of Representatives and is currently in the Senate. The

organizational assessment concludes with a recommendation of a port authority structure that would be advantageous for Muskegon.

The Port of Muskegon Infrastructure & Organizational Analysis was made possible by a grant from the U.S. Department of Commerce Economic Development Administration in conjunction with regional and local financial support from the West Michigan Prosperity Alliance (WMPA), Muskegon Area First, and other community partners.

The Port of Muskegon Infrastructure and Organizational Analysis Power Point Presentation can be accessed HERE. The Port of Muskegon Infrastructure and Organizational Analysis Executive Summary can be accessed HERE.

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http://wmsrdc.org/wp-content/uploads/2016/09/Final-PPT-Report.pdf

http://wmsrdc.org/wp-content/uploads/2016/09/Executive-Summary.pdf

onomic development update - muskegon area first · economic development update this economic...

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