Houghton County Northern Hardwoods plans to use state funds to build a new biomass boiler and backpressure steam turbine at its Atlantic Mine facility. (Photo courtesy of Northern Hardwoods)
LANSING — Governor Gretchen Whitmer and the Michigan Economic Development Corporation announced business investments and community revitalization projects in the Upper Peninsula representing more than $5.5 million in capital investment and the preservation of 85 jobs.
Northern Hardwoods Lumber in Houghton County and Cedar Street Real Estate in Schoolcraft County will both benefit from MEDC assistance.
“Today’s project will drive more than $5.5 million in investment and protect 85 good-paying jobs in Houghton and Schoolcraft counties,” Whitmer said in a news release Thursday. “From upgrading sawmills to reduce operating costs and emissions to building more housing in downtown Manistique, we win projects, invest in locations, and create comprehensive solutions to help people. We are moving forward with our economic development strategy.”
Northern Hardwoods Lumber announced plans to invest in and install a new biomass boiler and backpressure steam turbine at its Atlantic Mine facility. Investing in facility upgrades provides an opportunity to reduce operating costs and greenhouse gas emissions, leading to more energy-efficient processes. The investment will also ensure the longevity of the company’s operations, preserving 85 jobs in the city.
Without this investment, the company would have gone out of business at the end of its current boiler’s life cycle, the news release states.
The company anticipates a $4.75 million capital investment, supported by 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 an average wage of $23.76 per hour plus benefits, or $4.50 per hour above the regional average wage. In addition to MSF support, the company also received a $1 million Wood Innovation Grant from the U.S. Department of Agriculture.
Investments in northern hardwood forests will help Michigan establish itself as a leader in climate action through both the MI Healthy Climate Plan and federal macro-industrial policies, while creating and protecting projects that create and protect good-paying jobs. This further strengthens Michigan’s position to compete for the position. “It’s the same as the CHIPS Act, the Inflation Control Act, the Infrastructure Investment and Jobs Act,” Whitmer said.
“The Northern Hardwoods continues its long history of providing high-wage jobs by processing some of Michigan’s most valuable timber from the hardwood forests of the Upper Peninsula,” Keweenaw Economic Development Alliance said Jeff Ratcliffe, Executive Director. “We are proud to support their continued investment in their communities and Northern Hardwoods’ efforts to increase production capacity and efficiency and continue to be a great employer in the Keweenaw. We would like to thank MEDC for their financial support.”
The company’s parent company, JM Longyear, is a privately held U.P. company that acquired Northern Hardwoods Lumber LLC in 2015. Northern Hardwoods is a hardwood sawmill built in 1969 and currently producing 20 million board feet annually.
“Northern Hardwoods is deeply grateful for the support of the Michigan Economic Development Corporation,” said Cody Meyer, director of financial planning and analysis for JM Longyear. “The project to install a new biomass boiler and steam turbine will allow us to continue operations, maintain a talented workforce and further leverage the renewable resources that Michigan’s Upper Peninsula has to offer. ”
Cedar Street Real Estate announced its revitalization efforts for a former bank in downtown Manistique through the revitalization of the building’s second floor. With support from the Michigan Strategic Fund through the $250,000 Build MI Community Grant Initiative, it will be transformed from a vacant commercial building into a commercial and future residential complex.
The project will involve redeveloping a total of 4,670 square feet of former office space into three two-story residential apartments, representing a capital investment of approximately $820,000.
“We were looking to invest in downtown Manistique by providing much-needed housing along a commercial corridor,” said developer Christina Behrens of Cedar Street Real Estate. Antonio Adan said. “My family has lived in this area since the 1960s and we feel connected to the community. This building was on the market a few years ago and when we visited, we saw the potential of the floor plan and the beauty of the building.” We were immediately drawn to the mixed-use development, which will allow 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 a Repealed Property Rehabilitation Act tax abatement with an estimated value of $81,577. Invest UP, the region’s economic development agency, prioritized projects in the region by providing collateral support through its Build UP program.
“We applaud Northern Hardwoods and Cedar Street Real Estate’s commitment to success in Michigan,” said Matt McCauley, MEDC Senior Vice President of Regional Development.
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