AMC headquarters redevelopment gets $5.1 million in brownfield aid

Candice Williams
The Detroit News

The Michigan Strategic Fund approved Tuesday nearly $5.1 million in brownfield tax incentives for the redevelopment of the former American Motors Corp. headquarters.

Missouri-based NorthPoint Development, under the entity name NP Detroit Commerce Center, LLC, requested brownfield tax increment financing for the demolition and environmental remediation of the 50-acre site at 14250 Plymouth Road.

NorthPoint plans to invest $72.1 million to redevelop the site to build one or two buildings for warehouse and light assembly tenants, according to a Michigan Economic Development Corporation briefing memo. 

Rendering of NorthPoint Development's plans to build one or two buildings for warehouse and light assembly tenants on the site of the former AMC Headquarters site at 14250 Plymouth Road.

Demolition is expected to begin by late 2022 and construction is slated to be completed by March 2023. The project is expected to create 350 permanent jobs. 

In June, the Detroit City Council approved $32.6 million in tax increment financing for the project. It is projected that $21.7 million will be available to reimburse the developer during the 34-year term, city officials said.

Some neighborhood residents have voiced concerns about environmental impacts, asking the city council to call for the developer to enter a voluntary community benefits agreement. 

Officials from the Detroit Economic Growth Corp. have said the developer has made commitments to the neighborhood, including priority hiring, park renovation and a plan to downgrade the industrial zoning at the site.

The former AMC Headquarters has sat abandoned since 2010, becoming an eyesore in the neighborhood.

Also Tuesday, the strategic fund:

--Approved $11.2 million in incentives for Gentex, an automotive supplier that plans to build a manufacturing and distribution facility in Zeeland Township and expand its plant in Zeeland. The project is expected to generate $300 million in investment and create 500 jobs. The incentives include a $5.5 million Michigan Business Development Program performance-based grant, a $1.89 million Jobs Ready Michigan grant and a 15-year, 100% State Essential Services Assessment exemption valued at $3.8 million.  

--Approved a $1.5 million Michigan Business Development Program performance-based grant for a $3 million project by American Rheinmetall Vehicles LLC to build a new North American headquarters in Sterling Heights. The project is expected to create 150 jobs at the site, which has 52 full-time employees and a similar number of contractors.