DETROIT—The state of Michigan has awarded a local company $8.5 million in grants and loans to renovate the 19-story David Whitney building here in the central business district.

Whitney Partners LLC will receive a $1 million Community Revitalization Program performance-based grant and a $7.5 million performance-based loan from the state. The company plans to transform the building into 108 residential apartments, 135 hotel rooms and retail space on the first floor, and will restore access to the Detroit People Mover. Starwood Hotels and Resorts announced more than a year ago that it would put an Aloft hotel into the vacant building, a former office tower constructed in 1915.

The state incentives were announced as part of Gov. Rick Snyder’s awards by the Michigan Strategic Fund to support 14 business expansions that are expected to generate more than $1.1 billion in investments and add 4,590 jobs in Michigan.

“Our reinvention of Michigan is all about more and better jobs for families and bright futures for our children,” Snyder said in a statement. “The fact that these companies are choosing to stay and grow in Michigan reinforces our well-earned reputation as America’s comeback state. The commitment and innovation of these job creators, coupled with the high quality of Michigan’s talent, will keep our state moving forward. I applaud this tremendous investment in Michigan’s future.”