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Detroit is the Motor City – and More

Automotive is still a major factor, but the city is modernizing thanks to other industries.

  [ 5/1/2003 ]  By: Ann Morris   Related Link...  Print This Article  Reprint/License This Article  

Detroit has widely been known as “the Motor City for years.” Today, add to that label the new nickname, the “new city for the new millennium.”

DaimlerChrysler Corp. has invested about $14 billion in Detroit through new construction, renovation and expansion.

Underlying the investment is the Detroit Empowerment Zone, a federally designated program that has helped attract more than 80 new development projects in the city and 5,000 new jobs since 1994.

A similar program, the Detroit Renaissance Zone, a state designated development program, has created more than 1,200 new high-tech jobs and about $80 million of investment since 1994.

There’s no question that Detroit is still Motor City. Of the many relocations and expansions completed in the recent past, dozens have been automotive-related.

Conner Avenue Assembly Plant, producer of the Dodge Viper and the Plymouth Prowler, invested $10 million for a renovation. The Detroit Axle Plant, which manufactures axles for Jeeps, trucks, and minivans, invested $300 million to renovate a 1.2 million square foot facility.

The Mack Avenue Engine Plant II, a producer of 3.7-liter, V-6 engines, recently completed construction of a $750 million, 600,000 square foot expansion.

Brose North America recently announced its decision to expand in Auburn Hills. The company, an automotive supplier, decided to invest more than $26 million in a new building, machinery, and equipment to expand its research and development operation.

The company’s parent, Brose International, also considered Ontario during the site selection process. But The Michigan Economic Development Corp. helped Brose choose Auburn Hills by offering the company a single business tax credit worth up to $6.5 million over 12 years. It also offered up to $130,000 in job training grants.

“We are delighted the state of Michigan and city of Auburn Hills support Brose’s construction of a North American headquarters,” said Jan Kowal, president of Brose North America. “Our state-of-the-art facility will be dedicated to advancing automotive technology, benefiting the local community, our customers, and current and future employees of Brose North America.”

Another company that made news in the Detroit region is AxleTech International, which decided to invest up to $5 million to expand its research and development operations. AxleTech considered expanding in Wisconsin, but settled on Troy instead.

The state of Michigan encouraged the expansion by offering AxleTech a single business tax credit worth $3.1 million over the next six years.

More Than Just a Automobile Town

For all the automotive news going on in Detroit, one might think that’s all there is. But that’s far from the truth. Blue Cross Blue Shield of Michigan is a case in point. Michigan’s largest health care provider invested $32 million to construct a new 160,000 square foot building.

Other companies that have made news recently in Detroit include the Allied Building Service Co., a maintenance and janitorial business that opened a 300,000 square foot headquarters and showroom in the Detroit area, and plans more expansions in the future.

The Clark Street Technology Park is a new 72-acre park with more than 1.2 million square feet of space. The park is expected to create 1,700 new jobs.

As far as quality of life issues are concerned, Detroit is adding more flair to its landscape. The city’s central business district benefits from three world-class casinos, two sports stadiums, a theater district and an office and commercial complex.

Detroit is really in a period of growth and modernization. The city has been adding thousands of new residential units during the past 10 years, and the trend continues.

Among those residences are loft apartments that typically attract young, highly educated and motivated professionals. The sophisticated skills of these residents will help attract more investment from companies looking for employees whose skills match their hiring needs.

Detroit is also taking full advantage of its historical roots by preserving old buildings and building new ones that blend in with the old. The resulting atmosphere is welcoming.

- Ann Morris

 



 
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