Governor Whitmer announces MSF support for Ann Arbor mixed-use development, business growth

• Act 381 Work Plan to support Arbor South project in Ann Arbor, adding over 1,000 units of housing and community amenities
• $10 million loan awarded to Michigan CDFI Coalition to increase lending capital availability
• Amended Critical Industry Program grant to support Our Next Energy's battery technology manufacturing facility in Van Buren Township

LANSING, Mich. - Today, Governor Gretchen Whitmer announced Michigan Strategic Fund (MSF) Board approval for projects that support community development, housing, and business growth across the state.

" Every Michigander deserves a safe and affordable place to call home and a good-paying job ," said Governor Whitmer. "Today's projects will create affordable housing, support small businesses and community hubs, and create good-paying jobs for Michiganders. Let's keep working together to provide more opportunities for Michiganders to live, work, and play in vibrant communities."

"From creating housing and the revitalization of underutilized spaces to supporting Michigan-grown companies and small businesses, today's projects reflect the MEDC's commitment to executing the state's economic development strategy that elevates Michigan's communities, businesses, and industries," said Quentin L. Messer, Jr., CEO of the MEDC and MSF Board Chair. "We are grateful to the risk takers whose projects were approved today for their vote of confidence in Michigan. We thank Governor Whitmer, the members of the Michigan Strategic Fund Board, the Michigan Legislature, and our partners for their work in creating and funding the economic development tools that support these projects."

Act 381 Work Plan to support Arbor South project in Ann Arbor, adding over 1,000 units of housing and community amenities

In the City of Ann Arbor (Washtenaw County), the Arbor South project is a mixed-use development planned to transform an underutilized corridor into a new community featuring multifamily buildings, hotel space, offices and retail, and amenities. Amenities will include a public plaza with anticipated programming to include farmers markets, live music, and other events.

To support this transformative project, the MSF Board approved an Act 381 Work Plan, with state tax capture for Act 381 eligible activities capped at $110,699,520. In total, the project represents an anticipated capital investment of over $651 million, adding an estimated 1,069 housing units and revitalizing over 2.2 million square feet of space. Local contribution includes the local portion of the Work Plan request, which is valued at $201,850,416.

Arbor South will be developed by Eisenhower State Land Development Company, LLC (ESLDC) which is a partnership between Oxford Companies of Ann Arbor, Michigan, and Crawford Hoying of Dublin, Ohio.

"Arbor South represents a groundbreaking new mixed-use development that will create lasting value for the Ann Arbor community for decades to come," saidJeremiah Thomas, Chief Operating Officer of Crawford Hoying. "Through previous projects like Bridge Park, we have seen firsthand how formerly underutilized areas can become vibrant, walkable destinations when housing, retail, hospitality, office and public amenities are thoughtfully planned together. We are proud to partner with Oxford Companies and the City of Ann Arbor to bring that same level of energy, connectivity and long-term investment to Ann Arbor's southern gateway."

With more than 100,000 square feet of walkable, supportive retail, dining, and entertainment, the Arbor South project will allow residents, employees, and visitors alike to enjoy this development while transforming the southern gateway into Ann Arbor.

"We are encouraged that the Arbor South project is one step closer to becoming a reality. This is a significant project that would not be possible without strong partnership and support at the state level," said Joe Giant, director of economic development for the City of Ann Arbor. "Housing and sustainable development are challenges that extend well beyond city boundaries, and Arbor South demonstrates what is possible when we work together to address them. By creating more than 1,000 new homes in a sustainable development pattern, we hope this project can serve as another example of why Michigan offers an exceptional quality of life and opportunity for people across the state."

"The Arbor South site is one of Ann Arbor's most prominent gateway locations. Redevelopment will transform this underutilized property into a mixed-use, walkable neighborhood incorporating more than 1,000 residential units, commercial and retail uses, a hotel, public open space, and improved connections to transit and surrounding employment centers," said Jennifer Hall, executive director of the Ann Arbor Housing Commission (AAHC). "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. The affordable component represents a substantial addition to Ann Arbor's existing affordable housing inventory and provides an opportunity to serve households at a range of income levels in a location where new affordable housing is particularly difficult to create."

"Ann Arbor should be a city where more people can afford to call home. For too many families, the cost of living here has put that dream out of reach. That's why I am excited about this new housing project, which will include more than 200 permanently affordable homes and more than a thousand new homes overall, along with local shops and public space," said state Rep. Jason Morgan (D-Ann Arbor). "Hundreds of kids will get to grow up right here in Ann Arbor, join our public schools, and have the steady ground they need to thrive. This is what thoughtful growth can look like: creating more places to live, giving more families a chance to put down roots, and building a city where more people can afford to call home."

"The Arbor South Development Project represents a transformative investment in Ann Arbor and Washtenaw County," said state Rep. Morgan Foreman (D-Ann Arbor). "I am encouraged by the project's commitment to building a vibrant community with housing, hotels, businesses, and public amenities that will serve residents and visitors alike. I appreciate the partnership of MEDC and local stakeholders in advancing the significant investment in our region."

$10 million loan awarded to Michigan CDFI Coalition to support financing for small businesses, affordable housing, and community spaces

The MSF Board also approved a loan of up to $10 million to the Michigan CDFI Coalition to increase lending capital availability for Michigan-based non-depository Community Development Financial Institutions (CDFIs). The funding will contribute to a pooled loan fund to be administered by the Michigan CDFI Coalition, a nonprofit organization formed in January 2023 to collaborate on policy, lending solutions, and programming.

CDFIs are mission-based lenders that provide flexible and affordable financing for a range of purposes, including small businesses, affordable housing, and community spaces. There are at least 45 CDFIs operating in Michigan, including 27 loan funds and 18 credit unions.

According to data provided by U.S. Treasury, from 2005-2023 Michigan CDFIs deployed $6.3 billion in loans, which funded more than 26,000 microenterprises and small businesses, created or retained more than 82,000 jobs, and developed 28.9 million sq. ft. of real estate.

Amended Critical Industry Program grant to support Our Next Energy's battery manufacturing for defense, rail,and grid storage

The MSF Board also approved an amendment to the Critical Industry Program (CIP) grant awarded in October 2022 to Michigan-based energy storage company Our Next Energy to support a new battery technology manufacturing facility in Van Buren Township (Wayne County).

The amendment will allow Our Next Energy to reach production at the scale imagined with the initialapproval as the company evolves with federal policies to focus development on other use cases and industry areas. This includes supporting opportunities in rail, defenseand grid storage, as markets that maintaina strong need for battery products emergingin the U.S.

In addition to a reduced CIP award of $150 million from $200 million, the amended terms include:

• An increase of over $47.65 million in the project's total capital investment, from $1,624,845,244 to $1,672,495,944
• An updated project scope from lithium-ion cell manufacturing for automotive to include defense, energy storage, locomotive, and other applications
• A reduction in the project's job creation from 2,112 to 1,606 new jobs

Our Next Energy remainsone of a few U.S.-owned companies with proven, domestic large-format Lithium Iron Phosphate manufacturing capacity. Its batteries are deployed today throughout the U.S. military, major North American railroads, commercial electric transit vehicles and across other diverse applications. The company employs 156 people in Michigan, up from 117 in February, and is actively hiring production operators at its Van Buren Township facility.As a Michigan-grown company, Our Next Energy's continued growth and evolution will contribute to the state's battery supply chain and leadership across industries.

"We're deeply grateful for the partnership with the Michigan Economic Development Corporation. Their continued support has been instrumental as ONE has navigated a challenging turnaround, and this amended agreement reflects a more grounded, sustainable path forward," said Mujeeb Ijaz, CEO, Our Next Energy. "We are seeing the success of that turnaround: 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, and we've grown our Michigan team by a third since February to keep up with growing demand. We don't take this support for granted, and we're proud to keep building right here in Michigan."

Private activity bonds to support cost of improvements to Camp Michigania in Boyne City

The MSF Board also approved private activity bonds to the Alumni Association of the University of Michigan (AAUM) for financing the costs of improvements to Camp Michigania, a family camp which is located on Walloon Lake in Boyne City (Charlevoix County). The bonds will be issued in a principal amount not to exceed $15 million and will initially be issued in a bank purchase rate mode by PNC Bank, National Association.

AAUM purchased Camp Michigania in 1962 and has operated it since that time. The camp offers a variety of amenities to University of Michigan alumni and their families, including boating, arts and crafts, and horseback riding. Approximately 4,000 guests visit the camp each year.

The project proceeds will be used to finance improvements to the project property, including comprehensive infrastructure upgrades to wastewater treatment and an expansion of the camp's equestrian operations. AAUM anticipates that the project will result in the creation of five full-time positions and 20-30 temporary positions.

Construction of the project is anticipated to begin in Fall 2026 and be completed in Spring 2028.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state's marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan's economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook, Instagram, LinkedIn, and Threads.