Report shows $187.5 million in new private investment, 217 new jobs
Published on February 12, 2019
GRAND RAPIDS, Mich. – The City of Grand Rapids Economic Development Department today reported to the City’s Economic Development Project Team on the commitments from businesses that received approval for various City incentive programs during calendar year 2018. The commitments included $187.5 million in new private investment, 217 new jobs with an average wage of $19.17 per hour, 317 new housing units and an expected annual increase of $364,000 in City tax revenue generated.
“I continue to be grateful to our partners in the business community for their strong commitment to growth in our city,” Mayor Rosalynn Bliss said. “We continue to walk alongside our business owners and investors and we expect 2019 to be another excellent year of business development, growth and investment in Grand Rapids. All of this creates opportunities for our residents.”
The Economic Development Department also released an annual survey report that assess private investment and job creation for projects approved between 2010 and 2017 that require ongoing reporting. Businesses that utilized City incentive programs reported more than $236 million of recent investment and 992 new jobs with an overall average wage of $34.81.
Enabled by state legislation, these programs include Obsolete Property Rehabilitation Exemption, Industrial Facilities Tax Exemption, Neighborhood Enterprise Zones and New Personal Property Exemption. The overall return on investment to the City is 162 percent, which is calculated as the percentage of new property and income taxes paid ($1,087,882) compared to property taxes abated ($672,574). Additionally, with the support of these programs, 119 new or rehabilitated housing units have been created or are under construction.
“This report is evidence that business and real estate investment continued to be strong in 2018,” said Kara Wood, the City’s Managing Director of Economic Development Services. “Many of the projects that began construction in 2018 are slated to open by the end of 2019, and numerous other projects are set to begin this year. These new projects will bring jobs, entertainment, lodging, housing and retail space into the city.”
The results in the annual survey report do not reflect the accomplishments of the City’s Brownfield Redevelopment program or the accomplishments of economic development projects approved prior to 2015 that were included in previous reports. To view this report and to learn more about the activities of the City’s Economic Development Department, CLICK HERE.