Sterling Heights development part of Macomb turnaround
A 144-acre Sterling Heights land development is just one investment fueling rapid industrial growth in Macomb County.
Macomb County saw a $100 million jump in yearly investment developments from 2013 to 2014, according to the Macomb County Department of Planning and Economic Development. The department helped with $195 million in investment projects that created 1,202 jobs and retained 1,616 jobs in 2014 compared to $91 million in investments the year prior.
This year is proving to be even better for Macomb’s economic development with at least $167 million in investment. Another $165 million in investment is underway for 2016 and beyond, according to Vicky Rad, deputy director of Macomb County’s Department of Planning and Economic Development.
“Missing from these numbers are the projects that did not directly involve our office, but impact our overall economy,” Rad said. “This year has been very big and very busy in our industrial industry. We are seeing a lot of expansion projects and investments happening with new development and redevelopment.”
Macomb’s growing economic development is not only visible in the manufacturing sector, but also education, retail and commercial, health care, real estate, technology, financial and hospitality sectors, economic planners said.
In Oakland County last year, economic development continued to rebound, generating combined investment of more than $658 million while creating 5,343 jobs and retaining 5,865 jobs, according to Oakland County’s Department of Economic Development and Community Affairs. Growth was particularly strong in the advanced electronics and controls systems sectors, with investment of $112 million and job creation or retention of 1,677 jobs.
The Sterling Heights project, referred to as the Sterling Enterprise Park, is on the site of the former Sunnybrook Golf Course at 17 Mile and Van Dyke. It is the largest real estate development in the city since the construction in 1976 of Lakeside Mall at Schoenherr and Hall, according to city officials.
“The Sunnybrook development gives manufacturers space to grow. This is something that was really needed,” said Melissa Roy, executive director of Advancing Macomb, a nonprofit focused on integrating economic and community development in the county. “Macomb (County) is the third county in the nation for manufacturing growth since 2009. This speaks volumes about not only Macomb County, but the greater Detroit area.”
Macomb County also witnessed an upswing in manufacturing employment. It recorded a nearly 40 percent increase in manufacturing jobs from 2009 to 2014. After about 10 years of job losses, the county has had five consecutive years of growth, Rad said, and is expecting 2015 to mark the sixth year of growth once numbers are officially totaled. In 2014, Macomb had 70,043 manufacturing jobs compared to 50,288 in 2009.
“The 180-degree turn that manufacturing has done in Macomb County really shows the capability this region has,” Roy said. “In addition to the employment increase and new investments being made, there are many firms that are expanding and growing tremendously.”
The largest contributors to the manufacturing growth are the Big Three. In the past year, Fiat Chrysler Automobiles, Ford Motor Co. and General Motors Co. have committed to investing billions across Michigan as part of a deal with Gov. Rick Snyder’s administration to cap the value of business income tax credits.
■Under its 2015-19 contact with the United Auto Workers, Fiat Chrysler outlined plans to invest $5.3 billion in its manufacturing operations. Michigan facilities are expected to be involved, including $315 million for stamping plants in Sterling Heights and Warren.
■In June, Ford announced a plan to invest $3.1 billion in Michigan facilities — mainly manufacturing equipment and retooling plants — to keep its lucrative tax breaks capped at $2.3 billion.
■Earlier this month, General Motors committed to invest $1 billion in Michigan facilities through 2030 as part of the same tax credit deal with Snyder.
The Sterling Enterprise Park development is expected to break ground in the spring.
“There is not a lot of good, quality space for manufacturing in the market,” said Luke Bonner, economic development manager for the city of Sterling Heights. “Companies are growing and expanding — about 80 percent of manufacturing companies in the city have talked about growing. There is a need for additional space.”
Sterling Group, an investment and real estate firm based in Detroit, and J.B. Donaldson Co. of Farmington Hills are developing Sterling Enterprise Park.
Located in the Sterling Heights manufacturing corridor, the land for the development has been zoned industrial and will offer build-to-suit opportunities, and include two new hotels.
Once developed and occupied, the enterprise park could generate annual property taxes of around $800,000, according to the city, in contrast to the closed Sunnybrook Golf Course, which generated $168,000 a year in taxes.
“It’s going to enhance the tax space when you consider the predominantly vacant land that was there before,” Bonner said. “The tax yield is going to be very beneficial and the addition of new jobs will be a huge boost to Sterling Heights.”
Leah Borst is a Metro Detroit freelance writer.