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ANN ARBOR, MI-Toyota Motor Engineering and Manufacturing North America has finalized the purchase of a 700-acre parcel located in York Township. For $11 million, the company will assume the property from the State of Michigan, Department of Management and Budget.

Company execs say plans to remove the existing structures formerly occupied by the State Psychiatric Hospital will begin later this month. The land will be remediated and construction of a 400,000-sf facility will begin in the fall of 2006. The building will accommodate the company's expanding engineering design operations, allowing for the addition of 400 new jobs by 2010. Capital investment is projected to be approximately $150 million.

Toyota will maintain its current operations in Ann Arbor, while the York Township property will serve as a second campus to accelerate Toyota's increased localization and growth of manufacturing and sales in North America.