Governor Gretchen Whitmer announced Michigan Strategic Fund (MSF) Board approval for projects supporting community development, housing and business growth across Michigan, including a mixed-use development in Ann Arbor, a $10 million loan to the Michigan CDFI Coalition and an amended grant for battery maker Our Next Energy.
"Every Michigander deserves a safe and affordable place to call home and a good-paying job," Whitmer said. "Today's projects will create affordable housing, support small businesses and community hubs, and create good-paying jobs for Michiganders."
In Ann Arbor, the MSF Board approved an Act 381 Work Plan for the Arbor South project, with state tax capture for eligible activities capped at $110,699,520. The mixed-use development is expected to represent a capital investment of more than $651 million, add an estimated 1,069 housing units and revitalize over 2.2 million square feet of space. The local portion of the Work Plan request is valued at $201,850,416.
Arbor South will be developed by Eisenhower State Land Development Company, LLC, a partnership between Oxford Companies of Ann Arbor and Crawford Hoying of Dublin, Ohio. The project is planned to include multifamily buildings, hotel space, offices, retail and a public plaza with anticipated programming such as farmers markets and live music.
"Most importantly from AAHC's perspective, the project will provide 200 permanently affordable housing units, integrated within the broader development and located within walking distance of jobs, transit, services, and other daily amenities," said Jennifer Hall, executive director of the Ann Arbor Housing Commission.
The board also approved a loan of up to $10 million to the Michigan CDFI Coalition to increase lending capital for Michigan-based non-depository Community Development Financial Institutions. The funding will contribute to a pooled loan fund administered by the coalition, a nonprofit formed in January 2023. According to U.S. Treasury data provided by the coalition, Michigan CDFIs deployed $6.3 billion in loans from 2005-2023, funding more than 26,000 microenterprises and small businesses, creating or retaining more than 82,000 jobs and developing 28.9 million square feet of real estate.
An amendment to the Critical Industry Program grant awarded in October 2022 to Our Next Energy will support a battery technology manufacturing facility in Van Buren Township. The amended terms include a reduced award of $150 million from $200 million, an increase of over $47.65 million in total capital investment to $1,672,495,944, an updated project scope covering defense, energy storage, locomotive and other applications, and a reduction in job creation from 2,112 to 1,606 new jobs.
"We're deeply grateful for the partnership with the Michigan Economic Development Corporation," said Mujeeb Ijaz, CEO of Our Next Energy. "After rethinking where our technology could have the most impact and expanding beyond automotive into defense, rail and grid storage, ONE's first-half 2026 revenue already exceeded all of full-year 2025."
The MSF Board also approved private activity bonds to the Alumni Association of the University of Michigan for improvements to Camp Michigania in Boyne City, issued in a principal amount not to exceed $15 million. Construction is anticipated to begin in Fall 2026 and be completed in Spring 2028.