Redefine the tiff image and this image displays correctly with the correct units. In ArcMap 10 SP1, navigate to ArcToolbox > Data Management Tools > Projections and Transformations > Define projection. Your input raster will be 355502.tif and click the browse button for Coordinate System > Select > Projected Coordinate systems> State Plane > NAD 1983 (Intl Feet) > NAD 1983 StatePlane Michigan Central FIPS 2112(Intl Feet).prj , hit Add , apply ok and ok.