Contact:  Maura Campbell (517) 373-9280
Agency: Energy, Labor & Economic Growth

June 20, 2005 – The Michigan Department of Labor & Economic Growth (DLEG) today announced results that first year participants in the Cool Cities Neighborhood Award program say the designation helped create 400 new jobs and the retain 500 existing jobs. The year old program enabled 19 projects to have priority access to more than $100 million in existing grants, loans and other resources.

“The benefits reported by the communities greatly exceeded our expectations for a program in its first year of action,” Granholm said. “The Cool Cities designation has been a powerful catalyst for neighborhood revitalization while attracting and retaining jobs for today and tomorrow.”

The Cool Cities initiative, among other things, seeks to foster the development of vibrant, attractive cities and urban centers and is part of the governor’s plan to grow Michigan’s economy. The 19 Cool Cities pilot projects received catalyst grants in 2004 of up to $100,000 and have access to more than $100 million in state grants, loans, and other resources. 

The first-year participants are in Alpena, Bay City, Detroit, Ferndale, Flint, Grand Rapids, Jackson, Kalamazoo, Marquette, Port Huron, Portland, Saginaw, Saugatuck, Sault Ste. Marie, Warren, and Ypsilanti.

“Local businesses in Cool Cities communities saw significant growth in 2004 as 68 new businesses opened their doors for the first time and five expanded their enterprises to encompass increased progress,” DLEG Director David C. Hollister said, “This type of continued economic growth is vital in order to build vibrant, energetic communities that retain jobs and attract new jobs.”

The recipients also reported these positive results:

• The attention the Cool Cities program drew to the 19 local communities spurred significant monetary investment from various entities. In total, over $350 million was contributed by local ($63 million), state ($109 million), and private ($174 million) organizations.
  
  
• 100 percent of the projects reported the Cool Cities award designation caused other community groups to get involved with revitalization.

“The ‘buzz’ of this award designation is what has been most important in the program’s effort to revitalize communities,” Hollister said. “With the continuation of the Cool Cities initiative, we can further Governor Granholm’s vision of ‘jobs today, jobs tomorrow.’”   

A formal evaluation of Michigan’s overall Cool Cities Initiative is expected in early 2006.  The Department of Labor & Economic Growth, which coordinates this program, is currently working with the interdepartmental Cool Cities Coordinating Team to finalize the 2005 grant recipients.  An announcement on these is expected by early July. More information on Michigan’s Cool Cities Initiative is available at www.coolcities.com.