# Michigan Approves MSF Funding for Ann Arbor Development

Michigan Governor Gretchen Whitmer announced on September 22, 2026, that the Michigan Strategic Fund (MSF) Board approved significant financial support for major community and economic development projects. This includes an Act 381 Work Plan for the Arbor South mixed-use development in Ann Arbor, featuring over 1,000 housing units and community amenities, backed by a state tax capture cap of approximately $110.7 million and a total capital investment of $651 million. Additionally, MSF approved a $10 million loan to the Michigan CDFI Coalition to expand lending capital for small businesses, affordable housing, and community spaces. The Board also amended a Critical Industry Program (CIP) grant for Our Next Energy's battery manufacturing facility expansion in Van Buren Township, reducing the grant from $200 million to $150 million while increasing the total capital investment to $1.67 billion. These actions reflect Michigan's strategic focus on housing, economic growth, and advanced manufacturing aligned with evolving federal priorities.

- **Why this matters:** Procurement professionals should note the substantial state-backed financing supporting large-scale mixed-use development and advanced manufacturing projects, indicating opportunities for contractors and suppliers in housing construction, infrastructure, and battery manufacturing sectors.
- The $10 million loan to the Michigan CDFI Coalition signals increased capital availability for community-focused lending, which may stimulate demand for related professional and financial services.
- The amended CIP grant for Our Next Energy highlights continued state investment in clean energy manufacturing, suggesting procurement opportunities in battery production and related supply chains.
- Organizations engaged in Michigan's economic development should consider collaboration with key stakeholders such as the Michigan Strategic Fund, Michigan Economic Development Corporation, and local municipal entities to align with these initiatives.

**Jurisdictions:** sled
**Industries:** Construction & Infrastructure, Energy & Utilities
**Topics:** Physical Infrastructure, Grants & Funding
**Published:** September 22, 2026

### Government Entities
- Michigan Strategic Fund (MSF)
- Michigan Economic Development Corporation (MEDC)
- City of Ann Arbor
- Ann Arbor Housing Commission (AAHC)

### Vendors
- Eisenhower State Land Development Company, LLC (ESLDC) (Developer)
- Oxford Companies (Partner Developer)
- Crawford Hoying (Partner Developer)
- Our Next Energy (Battery Manufacturing Company)

### Key Quotes
> 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.
> — Mujeeb Ijaz, CEO, Our Next Energy

> Every Michigander deserves a safe and affordable place to call home and a good-paying job.
> — Gretchen Whitmer, Governor

### Sources
- [Gov. Whitmer Announces MSF Support for Ann Arbor Mixed-Use Development, Business Growth](https://www.michigan.gov/whitmer/news/press-releases/2026/09/22/whitmer-announces-msf-support-for-ann-arbor-mixed-use-development-business-growth) - MI