MEMORANDUM DATE: March 16, 2020 TO: The Honorable Gretchen Whitmer Governor of Michigan Members of the Michigan Legislature FROM: Mark Burton, President Michigan Strategic Fund SUBJECT: FY 2019 MSF-MEDC Annual Report The Michigan Strategic Fund (MSF) is required to submit an annual report to the Governor and the Michigan Legislature summarizing activities and program spending for the previous fiscal year. This requirement is contained within the Michigan Strategic Fund Act (1984 PA 270) and budget boilerplate. Attached you will find the annual report for the MSF and the Michigan Economic Development Corporation (MEDC) as required in Section 1004 of Public Act 56 of 2019 as well as the consolidated MSF Act reporting requirements found in Section 9 of the MSF Act (MCL 125.2009). Additionally, you will find an executive summary at the forefront of the report that provides a year-in-review snapshot of activities. In an effort to further consolidate legislative reporting, the attachment also includes the following budget boilerplate reports. • Michigan Business Development Program and Michigan Community Revitalization Program amendments – Section 1006 • Corporate budget, revenue, expenditures/activities and state vs. corporate FTEs – Section 1007 • Jobs for Michigan Investment Fund – Section 1010 • Michigan Film incentives status – Section 1032 • Michigan Film & Digital Media Office activities – Section 1033 • Business incubators and accelerators annual report – Section 1034 Also included in the attachment is an annual status report for the Community College Skilled Trades Equipment Program (CCSTEP) which is now administered by Workforce Development in the Department of Labor and Economic Opportunity. Please contact the MEDC Office of Government Relations at 517.335.1847 if you have any questions. Attachment cc: Chris Kolb, State Budget Director Chris Harkins, Director, Senate Fiscal Agency Mary Ann Cleary, Director, House Fiscal Agency Margaret O’Brien, Secretary of the Senate Gary Randall, Clerk, Michigan House of Representatives 2019 ANNUAL REPORT Table of Contents A Message from Our Leadership . 1 Strategic Priorities in FY 2019 . 2 Looking Back: MEDC Creates Statewide Opportunities Detroit . .4 Vicksburg . 6 Western Upper Peninsula . .8 Grayling . 10 What’s Next: A Look at FY 2020 and Beyond . 12 A Message from Our Leadership in supporting economic growth at the Small Business iscal Year 2019 brought some significant Development Center of Michigan, Procurement accomplishments for both the state of Michigan Technical Assistance Centers or the Michigan and the Michigan Economic Development F Manufacturing Technology Center; or the relationships Corporation (MEDC). Our state achieved a number we fostered and strengthened with our corporate, of important national recognitions, including for our regional and interlocal development partners, we know automotive manufacturing strength, our innovative tech that MEDC’s success is all of Michigan’s success. and mobility leadership and our unparalleled four-season travel opportunities. In this Fiscal Year 2019 annual report to the Legislature, we sought to provide a comprehensive reflection of the At the MEDC, we assisted businesses and communities previous fiscal year’s accomplishments and the impact across the state more than 10,000 times throughout MEDC is having to grow our state’s economy. That is why Fiscal Year 2019. We attracted generational investments you will find that this document is laid out differently from global automotive companies like Fiat Chrysler than in past reports. In the coming pages, we will outline Automobiles and Ford Motor Company, and high-tech the MEDC’s Fiscal Year 2019 strategic priorities and innovators like Waymo and KLA, which altogether economic impact, along with a look ahead to our work are creating thousands of jobs across the state with and priorities in Fiscal Year 2020 and key information far-reaching impacts. Throughout the year, we have and data on the performance and status of MEDC and seen how a single job can provide a pathway for Michigan Strategic Fund (MSF) programs and tools, as is workers — to hope, to equity and to stronger families statutorily required. and communities. That impact — multiplied by the thousands of jobs Michigan created through support We look forward to finding new opportunities to from the MEDC — is what drives our organization to collaborate with all of you this year as we work together continue advocating for greater economic opportunities to create long-term economic opportunities for residents throughout all corners of our state. throughout our great state. In Fiscal Year 2019, MEDC recognized our 20th anniversary, marking two decades of helping to Sincerely, transform Michigan’s economy by building community, connecting businesses, supporting entrepreneurs, strengthening international relationships, promoting Michigan’s tourism industry and driving the future of mobility. We also developed a new five-year strategic plan that reflects our commitment to enabling long-term Mark Burton economic prosperity for all Michiganders. CEO, MEDC We recognize, however, that our accomplishments this year were only possible thanks to the collaboration and support we received from our state and local partners and regional service providers. Whether it was the feedback and input we gathered from local economic development experts on the Collaborative Development Awenate Cobbina Council; the efforts of MEDC-funded service providers Chair, MEDC Executive Committee 1 MEDC Strategic Priorities in FY 2019 small within the state, recognizing that Michigan’s hroughout the past year, MEDC team members healthy economy thrives thanks to those businesses that traveled to every corner of the state, meeting call our state home. T with community leaders, business owners and entrepreneurs to discuss their ideas and vision for Through these efforts, MEDC worked to have a growth within Michigan. Team members marketed significant and holistic impact on the economic Michigan around the globe, from Israel to Canada and prosperity of Michigan communities. This resulted in Singapore to Mexico and more, pursuing business leads more than $9.2 billion of private investment into the and promoting Michigan’s strengthened economy, state, helping Michigan businesses create nearly 24,000 robust talent pool and unmatched quality of life. jobs and reactivate more than 4.9 million square feet of Building on these attraction efforts, MEDC continued public space throughout our state. strengthening relationships with companies large and BUSINESS INVESTMENT 215 $8 BILLION PROJECTS PRIVATE INVESTMENT 23,901 INCENTED JOBS $4 BILLION FACILITATED REVENUE COMMUNITY VITALITY 5.6 MILLION 131 PRIVATE SQ. FT. REVITALIZED PROJECTS 4.9 MILLION $1 BILLION PUBLIC SQ. FT. REACTIVATED PRIVATE INVESTMENT 2 REGIONAL IMPACT MEDC PROVIDED ASSISTANCE TO 65 COUNTIES ACROSS THE 10 73% STATE IN FY19 Of rural counties* 10 received assistance PROSPERITY REGIONS in FY19 *Rural is defined as counties with a population of less than 90,000, as of the most recent decennial census. Under this definition Michigan has 62 rural counties and 21 non-rural counties . SERVICE PROVIDERS 9,818 SERVICE INTERACTIONS (Procurement Technical Assistance Center, International Trade STEP Grants, Michigan Manufacturing Technology Center, Pure Michigan Business Connect, Small Business Development Center) IMAGE 6.4 MILLION $2.5 BILLION PURE MICHIGAN PURE MICHIGAN-INFLUENCED VISITORS TO THE STATE SPENDING IN THE STATE Looking Back: MEDC Creates Statewide Opportunities Over the year, MEDC applied an inclusive approach to economic development through our business attraction and retention efforts, community revitalization support, and our work to promote Michigan as a place for talent to live, work, travel and play. In doing so, MEDC worked to ensure this holistic economic impact was experienced throughout all regions and key industries in the state. 3 Detroit Investments from FCA, Ford and GM ensure the next generation of transportation will be developed, tested and deployed from right here in Michigan $9.5 8:1 11,633 BILLION Job Chain Jobs Created Investment Multiplier 4 mobility problems. The winning proposals included n Fiscal Year 2019, Michigan further solidified the Mercy Education Project; AbleLink Smart Living its global leadership in developing the future Technologies; and a team composed of Downtown of transportation and mobility through a series I Detroit Partnership, DTE and local artists. These of transformational projects and announcements. winning solutions range from addressing the need for Governor Gretchen Whitmer joined officials from Fiat more inclusive transportation options to making the Chrysler Automobiles (FCA) in May 2019 to announce Corktown community more inviting for its residents FCA is investing $4.5 billion and creating 6,433 good- to commute, including a responsive transit application, paying jobs at a new state-of-the-art assembly plant bridge art project and information kiosks – all in an in Detroit and five existing Michigan facilities, which effort to improve mobility for people living, working will enjoy expanded production as well as the ability to and visiting communities surrounding Michigan build fully battery electric models in the future. This Central Station. generational project represents the largest automotive assembly plant deal in the U.S. in a decade and is the Ford doubled down even further on its efforts to first new automotive assembly plant in Detroit in