NORTHERN HARDWOODS OF Houghton County will use the state funds for a new biomass boiler and a back-pressure steam turbine at their facility in Atlantic Mine. (Photo courtesy of Northern Hardwoods)
LANSING — Gov. Gretchen Whitmer and the Michigan Economic Development Corporation have announced business investment and community revitalization projects in the Upper Peninsula that will represent more than $5.5 million of capital investment and protect 85 jobs.
Both Northern Hardwoods Lumber in Houghton County and Cedar Street Real Estate in Schoolcraft County will benefit from MEDC assistance.
“Today’s projects will drive more than $5.5 million of investment and protect 85 good-paying jobs in Houghton and Schoolcraft counties,” Whitmer stated Thursday in a news release. “From an upgrade to lower operating costs and emissions at a lumber plant to more housing in downtown Manistique, we are moving forward with our comprehensive economic development strategy to win projects, invest in places, and support people.”
Northern Hardwoods Lumber has announced plans to invest in and install a new biomass boiler and a back-pressure steam turbine at its facility in Atlantic Mine. The investment in upgrades to the facility will provide the opportunity to reduce operating costs and greenhouse gas emissions, leading to a more energy-efficient process. Investments will also add longevity to the company’s operations and the retention of 85 jobs in the city.
Without this investment, the company would have closed its doors at the end of the current boiler’s life cycle, the news release stated.
The company is anticipating $4.75 million in capital investment with the support of a $250,000 Michigan Business Development Program grant from the Michigan Strategic Fund. The 85 jobs that will be protected as a result of this investment will have averages wages of $23.76 per hour plus benefits, $4.50 per hour above the regional median wage. In addition to MSF support, the company has also been awarded a $1 million Wood Innovations Grant from the U.S. Department of Agriculture.
The Northern Hardwoods investment further amplifies how Michigan has positioned itself to compete for and win projects that create and protect good-paying jobs, while positioning the state as a leader in climate action through both the MI Healthy Climate Plan and federal macro-industrial policies such as the CHIPS Act, Inflation Reduction Act and Infrastructure Investment and Jobs Act, Whitmer said.
“Northern Hardwoods continues its long history of providing good paying jobs through the processing of some of Michigan’s highest value timber from the hardwood forests of the Upper Peninsula,” said Jeff Ratcliffe, executive director of the Keweenaw Economic Development Alliance. “We are proud to support their continued investment in our community and appreciate the MEDC’s financial support for Northern Hardwoods’ efforts to improve capacity and efficiency and remain a great employer in the Keweenaw.”
The company’s parent, JM Longyear, is a privately held company in the U.P. that acquired Northern Hardwoods Lumber LLC in 2015. Northern Hardwoods is a hardwood sawmill originally built in 1969 that currently produces 20 million board feet per year.
“Northern Hardwoods is deeply grateful for the support of the Michigan Economic Development Corporation,” said Cody Meier, director of financial planning and analysis at JM Longyear. “The project to install a new biomass boiler and steam turbine will enable us to continue operations, retain our talented workforce and further utilize the renewable resources that the Upper Peninsula of Michigan offers.”
Cedar Street Real Estate has announced revitalization efforts of a former bank in downtown Manistique through the activation of the second floor of the building. It will be transformed from a vacant commercial building to a mixed-use commercial and future residential property with support from the Michigan Strategic Fund through a $250,000 Build MI Community Grant Initiative.
In total, the project will redevelop 4,670 square feet of former office space into three residential apartments on the second floor, representing nearly $820,000 of capital investment.
“We were looking to invest in downtown Manistique in a way that provides much-needed housing along the commercial corridor,” said Kristina Behrens and Antonio Adan, Cedar Street Real Estate developers. “My family has been in the area since the 1960s and we feel a connection to the community. This building had been on the market a couple years ago, and when we visited, we were immediately drawn to the potential of the floor plan and the beautiful features of the building. The mixed-use development will enable patrons to enjoy a more pedestrian-friendly downtown area.”
The site is a priority for the City of Manistique and has received local support in the form of an Obsolete Property Rehabilitation Act tax abatement with an estimated value of $81,577. The regional economic development organization, Invest UP, has prioritized the project for the region by providing collateral support from the Build UP program.
“We applaud the commitments from Northern Hardwoods and Cedar Street Real Estate in their efforts to Making it in Michigan,” said Matt McCauley, MEDC senior vice president of Regional Development.
