Increasing Supply to Help Lower the Cost of Housing in the Region

LANSING, MI - On October 22, 2024, Governor Gretchen Whitmer announced approval for placemaking projects that will increase housing and community vitality in Detroit and Wyandotte, as well as additional federal funding to support startups and innovators.  

“Today’s investments will convert the iconic Fisher Body Plant in Detroit and the former Wyandotte City Hall into hundreds of new units of quality, affordable housing and commercial space,” said Governor Whitmer. “Our comprehensive economic development strategy is all about making Michigan the best place to live, work, and invest. Together, we are converting old, underutilized property into productive space and making our neighborhoods more attractive for families and small business owners too. Let’s keep betting on Michigan and building up our cities.” 

“Today’s support from the MSF Board reflects our commitment to executing the ‘Make It In Michigan’ economic development strategy focused on people, places, and projects, true to our holistic philosophy of economic growth that delivers more chances for prosperity on both peninsulas,” said Quentin L. Messer, Jr., CEO of the Michigan Economic Development Corporation and President and Chair of the MSF Board. “I’m humbled and motivated knowing that the tangible benefits our investments provide a job, a home, a dream realized, a legacy, or all the above to our friends and neighbors. My thanks to the Governor and the state Legislature for providing the economic development tools, and congratulations to all involved who continue to create opportunities to build Michigan’s sustained success and prosperity.” 

FISHER 21 LOFTS, LLC

Overview: The MSF Board approved $10 million in Community Revitalization Program (CRP) funds to rehabilitate the iconic former Fisher Body Plant in Detroit into a mixed-use development. The funding includes $8.5 million for a performance-based loan, and $1.5 million in a performance-based grant (both from CRP). The project intends to create 433 market-rate and affordable housing units (63 units will be reserved for those with 50-80% of the Area Median Income), over 26,700 square feet of retail space and 17,685 square feet of co-working space.  

As Detroit’s renaissance has sky-rocketed in recent years, Fisher 21 is a significant icon that had yet to be a part of that movement until the vision brought forward by developers Gregory Jackson and Richard Hosey. 

“We are incredibly proud to be spearheading the largest African American-led development project in Michigan with the revitalization of the iconic Fisher Plant. This project is about more than just bricks and mortar-it’s about restoring a piece of Detroit's history and creating opportunities for the city’s future,” said Gregory Jackson and Richard Hosey of Fisher Lofts 21, LLC. “This redevelopment allows minority workers, who have been instrumental in rebuilding Detroit, to finally receive the recognition they deserve. We are breaking down barriers and ensuring that those who contribute to Detroit’s growth-whether through construction or beyond-share in its success. With the creation of jobs and hundreds of units of affordable and market-rate housing, this project is a testament to what’s possible when community-driven and minority-led investment comes together. We’re thankful for the Michigan Strategic Fund helping us make it happen.” 

“I am thrilled to learn about the MEDC's investment in the Former Fisher Body Plant Redevelopment Project. In recent years, we have seen housing prices continue to rise in the city of Detroit and Michigan,” said state Senator Stephanie Chang (D-Detroit). “I am excited to see that this project will provide much needed affordable housing in our state while also making use of the current vacant plant and addressing blight.” 

“The Fisher Body Plant is an iconic piece of Detroit history,” said state Representative Mike McFall (D-Hazel Park). “I am proud to see various levels of government and community come together for this revitalization project.  The housing piece is vital to ensure people are not pushed out of their communities because of new developments.” 

The MSF Board also supported a state tax capture for Brownfield Act 381 eligible activities capped at roughly $8.7 million.  

Today’s action by the MSF Board builds upon other MSF-supported projects in the area, demonstrating the MEDC’s commitment to holistic, place-based solutions: 411 Piquette, which is renovating a former Studebaker plant into housing, and Fortescue, who in January secured a Michigan Business Development Program grant to create a facility manufacturing electric vehicle battery systems. 

“Richard and Greg are transforming a reminder of decay and blight into something that showcases our proud auto heritage and points us toward a bright future,” said David Laurence Howell, Vice President of Development Services at the Detroit Economic Growth Corporation. “This project isn’t just about a building – it’s about making real differences in people’s lives, from creating family-friendly affordable housing to boosting the whole neighborhood. The DEGC is proud to support this transformative effort with a TIF, tax incentives and RAP 2.0 grant funding we secured from our partners at MEDC to advance the project.”  

3131 BIDDLE, LLC

The MSF Board also reauthorized, and increased, Michigan CRP funding to the former Wyandotte City Hall at 3131 Biddle.  

Overview: In February 2023, the MSF Board supported a $1.56 million performance-based CRP loan to the Federal Building Redevelopment Project at 3131 Biddle. Shortly after, the project ran into unanticipated cost challenges, requiring a redesign and ultimately, the reauthorization of that funding as well an additional $255,348, which the MSF Board supported today. The project will now include 30 residential units as well as first floor retail or restaurant space.  

Why It Matters: Once an anchor of Wyandotte’s downtown, the property has become functionally obsolete since the City Hall moved in 2013. Continued support for the project ensures it can once again serve as a thriving hub for residents and visitors. 

VENTURE CAPITAL INVESTMENT TO SUPPORT SMALL BUSINESSES

The MSF also supported the deployment of up to $11 million to Augment Michigan Opportunity Fund IV - MI, LP, from the Michigan State Small Business Credit Initiative (SSBCI) 2.0 Venture Capital Program. The program builds on MEDC’s support of small businesses and entrepreneurs by providing capital to early-stage, technology-based businesses in the State of Michigan as a limited partner (LP).   

“At Augment Ventures, we are thrilled at the opportunity to collaborate with the MEDC and further support Michigan’s small business ecosystem. We firmly believe Michigan is a dynamic hub for innovation and growth, and recent momentum in the state’s startup ecosystem is undeniable,” said Sonali Vijayavargia, Founder of Augment Ventures. “Many of Augment’s most successful companies have roots here, and this partnership reinforces our commitment to fostering innovation and creating opportunities in Michigan. We look forward to continuing our journey and investing in the next generation of transformational businesses that will shape the future of Michigan and beyond.”