Investing in Communities - Where People Come First
Mt. Pleasant, MI: 410 Broadway Street will be busy with construction activity this week after years of sitting vacant and failed redevelopment attempts. Michigan Community Capital, a Michigan non-profit corporation, bought the property from the Mount Pleasant Economic Development Corporation in December of last year and secured the majority of funding needed for the project in January 2020. With the execution of a grant agreement between the City of Mount Pleasant and The Michigan Department of Environment, Great Lakes and Energy (EGLE) this month, the last source of funding has been secured. This $565,000 grant will help address contamination and soil conditions on the property.
The project will be able to start construction under Governor Whitmer’s Executive Order 2020-77 which allows for construction to commence with ample precautions to protect workers from COVID-19. Pioneer Construction, the construction manager for the property, has developed a robust safety plan to keep on-site workers safe.
This project will expand Green Tree Cooperative Grocery’s footprint to be 10,000 square feet and add additional apartments to the downtown. “Green Tree’s expansion has been 50 years in the making. We're excited to build a bigger, better store for our community and equally excited to be part of the Broadway Lofts project,” said Sarah Christensen of Green Tree Cooperative.
The upper three stories will have 48 apartments, which include six (6) 432 square foot studios, thirty (30) 540 square foot one-bedrooms and twelve (12) 720 square foot two bedrooms apartments. Rents are anticipated to range in price from $785-1,295 per month, with 31% of the units being income restricted.
“I’m most excited to hear how much residents enjoy the building,” said Marilyn Crowley, Vice President of Investments for Michigan Community Capital. “After so much problem solving, planning and negotiation, to see everyone’s hard work come to life is a great feeling”.
The project was made possible through public and private funders that include PNC Bank, Cinnaire, National Cooperative Bank, the City of Mt. Pleasant and EGLE. The largest source of funds for the project was through a Workforce Housing Loan from the Michigan Economic Development Corporation.
The building is anticipated to be open in July of 2021.
*** Michigan Community Capital “MCC” is a Lansing, MI based private non-profit, 501 (c)3 public charity, a Community Development Entity and a U.S. Treasury licensed Community Development Finance Institution. MCC focuses on public-private partnerships to complete projects that the private sector would not pursue. Over its 14 year history, the company has completed 22 projects utilizing $164M in Federal New Market Tax Credit allocation and has worked to finance the development of over 250 units of rental housing addressing a continuously expanding gap called the “Missing Middle” MCC is a supporting organization to the Michigan Economic Development Corporation and the Michigan State Housing Development Authority and works with a number of local, regional and national banks to drive investment into underserved markets in the State of Michigan.
Lansing, MI: Michigan Community Capital (MCC) secured an additional $1.5m in highly flexible, low cost capital from Northern Trust, marking its third and largest investment in MCC in the past three years. These funds will be used to help complete multiple projects across the State of Michigan.
“MCC’s unique niche is to look at the most complex and challenging needs in a wide variety of communities and to have the flexibility of financial resources, the human talent, and the systems, processes and discipline to be able to address these needs” said Eric Hanna, President & CEO of MCC.
Northern Trust, under the leadership of Deborah Kasemeyer, has been among MCC’s most valuable partners. Northern Trust was the first bank to make an investment in MCC, has provided capital with the lowest cost and the least constraints, and they continue to do so because they understand that sometimes to address the most complex locations, site conditions, and projects, maximum flexibility is what is required. Their ongoing support of MCC helps instill confidence in other bank, foundation, government, and community-based partners. It is this confidence that
propels the mission forward.
MCC, with very strong support from the Michigan Economic Development Corporation and a number of other banks, foundations, and partners, has grown its balance sheet from $2.8m in 2016 to $34m currently. It has closed multiple atrisk equity investments and loans which supply attainable housing in high cost communities. It has also made investments that support grass roots brownfield remediation and downtown revitalization in communities starved for
investment but engaged, and actively working toward improving the appeal of the community as an attractive place to live and work. In three years, the company has gone from 0 to over 500 units of rent restricted housing in service or under development, all in mixed-use, mixed-income downtown redevelopments which also expanded retail space for small businesses and created safer, more walkable communities. It has also won $55M in additional federal New Market
Tax Credits which are being deployed exclusively in Michigan to help business and community development projects thrive and expand.
*** Michigan Community Capital “MCC” is a Lansing, MI based private non-profit, 501 (c)3 public charity, a Community Development Entity and a U.S. Department of Treasury licensed Community Development Finance Institution. MCC focuses on public-private partnerships to complete projects that the private sector would not pursue. Over its 14-year history, the company has completed 22 projects utilizing $164M in Federal New Market Tax Credit allocation. In the past three years it has also worked to finance the development and delivery of over 250 units of rental housing addressing a continuously expanding gap called the “Missing Middle” and has an additional 250 under development. MCC is a supporting organization to the Michigan Economic Development Corporation and the Michigan State Housing Development Authority and works with a number of local, regional and national banks to drive investment into underserved markets in the State of Michigan.
Mt. Pleasant, MI: For over a decade, 410 Broadway sat vacant along the Chippewa River, just a few blocks from the heart of Downtown Mt. Pleasant. After several failed proposals from other developers over the years, the site will finally break ground next month as the future Broadway Lofts. On Tuesday, Michigan Community Capital (MCC) secured over $18M in funding that allows the four-story, 50,000 square foot project to begin. Once completed in May of 2021, the 1.34-acre site will be the new 10,000 square foot location of Green Tree Cooperative Grocery and offer 48 mixed-income apartments on the upper floors.
"GreenTree is so excited to be a part of this project.” says Sarah Christensen, General Manager of GreenTree. “We've been working for a long time on a plan to relocate, to build a new, bigger, better store and to bring food to our community in a more accessible way. Michigan Community Capital has proven to be a great partner for us. We believe this project will re-invigorate downtown, that in 10 years the community will look back on this project and see it as an exciting turning point for Mt. Pleasant"
“The 410 Broadway project will add vibrancy to downtown Mt. Pleasant and drive further economic growth in the area,” said MEDC Sr. Vice President of Community Development Michele Wildman. “We are pleased to work with MCC and other partners on this project, which will help make Mt. Pleasant a more attractive place to live, work, and play.”
The project received state support in the form of a low-interest loan from the Michigan Economic Development Corporation (MEDC) and is seeking grant funding from the Michigan Department of Environment, Great Lakes, and Energy (EGLE). In addition, the project secured a loan from the National Cooperative Bank, and a New Market Tax Credit allocation from PNC and Cinnaire. "The New Markets Tax Credit is a key financing tool that helps catalytic projects like this become a reality," said Peter Giles, Vice President, Business Development at Cinnaire. "Broadway Lofts will create jobs, provide affordable housing and spur economic development in downtown Mt. Pleasant and we're proud to be part of this project."
From Bill Mrdeza, the Community Services & Economic Development Director at the city of Mt. Pleasant: “The City of Mt. Pleasant considers the Broadway Lofts project as a key component in continuing its commitment to a vibrant downtown, as well as serving as a catalyst to attract new investment in the community. It has taken almost fifteen years to realize the original plan of creating a mixed-use development adjacent to the renovated historic Borden Building that now serves as City Hall. The City is thrilled to have Michigan Community Capital as our development partner. Given the complexity of the project and the challenging site conditions, it has truly been a cooperative effort by all parties to bring that dream to fruition.” The city of Mount Pleasant supported the project with a Neighborhood Enterprise Zone Abatement and a Commercial Facilities Exemption.
“It is with no small amount of pride that I can report that MCC has closed our funding for the 410 Broadway Redevelopment.” said Eric Hanna, President of MCC. “The project involved one of the most complex sites that MCC and many of our partners have ever managed including flood plain, contamination, poor soils, high water table and significant utility relocation. In the end, it took a financial structure in excess of standard programs to get the site redeveloped. I am, however; convinced that this building will be a 100-year+ asset to the community.”
LUDINGTON — A Grand Rapids developer and Lansing-based nonprofit investor Michigan Community Capital are hoping to turn a donated building into apartments in Ludington.
The companies will seek local and state approvals to redevelop the building at 801 N. Rowe Street in Ludington into 65 apartments. The 100-year-old building was donated by Ludington-based Change Parts Inc. owner Ron Sarto and his wife, Dawn Sarto.
LANSING) –New people, retail and parking could be coming to Old Town through a proposed redevelopment of the iconic Temple Building. The brownfield plan for the Temple Lofts redevelopment project is anticipated to be received by the Lansing City Council for consideration Monday, Oct. 14, 2019. The Temple Building, built in 1906, derives its name from the original
occupants, the Bethlehem Temple Church. The building has been vacant for several
years and significantly underutilized for decades.
“The Temple Club building is an iconic part of Lansing, bridging Old Town and Northtown. This is an
important spot in terms of both commercial and residential activity, and I am excited that we are
working with Michigan Community Capital to re-activate this space with housing and mixed-use
options,” said Lansing Mayor Andy Schor. “Lansing’s time is now, and the redevelopment of the Temple Club will ensure an even more vibrant and active business and residential district for residents and visitors of Old Town, Northtown and all of north Lansing.”
Previously, the Lansing Brownfield Redevelopment Authority (LBRA) approved Brownfield Plan #78 at their Oct. 4, 2019, meeting, a first step forward for the proposed $9 million renovation of the Temple Building. Mayor Schor and the Brownfield Board will submit the Brownfield Plan to the Lansing City Council and ask that it be referred to the Council Committee on Development and Planning for further consideration.
“The Lansing Brownfield Redevelopment Authority (LBRA) is supporting this project due to the
incredible impact it could have on both a very important building in the city, and a key entry point
into the city. We look forward to seeing another great project move forward in Lansing,” said Calvin Jones, Chair of the LBRA.
The mixed-use redevelopment project proposed by Lansing-based Michigan Community Capital will include new first floor retail and office space, along with 31 new residential units to complement the Old Town neighborhood’s existing diverse mix of eclectic shops and rich culture. In addition, the
project will include 54 new parking spaces created by an attached 2-story parking structure. If the
brownfield plan is approved by city council, the project is anticipated to create up to 10 new
permanent full-time jobs and 50-60 construction jobs. Construction could begin in spring 2020 and
be completed late 2021.
As with all brownfield eligible projects, the developer will fund related brownfield costs up front as
part of the overall project cost. The brownfield reimbursement will be paid for from the increase in
new property taxes paid by the developer which will result from the developer’s private investment
into the property.
The Lansing Economic Area Partnership (LEAP) will present the brownfield plan to City Council on
behalf of the Lansing Brownfield Redevelopment Authority (LBRA). Following a required public
hearing the brownfield plan is expected to come before City Council for their final consideration in
By: Kathleen Achtenberg
Michigan Community Capital receives New Market Tax Credits by CDFI Fund
LANSING, Mich. – More affordable housing will be built across Michigan with the help of a $55 million Community Development Financial Institution (CDFI) New Markets Tax Credit (NMTC) award, the Michigan Economic Development Corporation announced today. Michigan Community Capital, one of three Michigan entities to receive an NMTC award in the 2018 round announced in late May, will use the $55 million program award to invest in attainable housing projects in communities statewide.
“The $55 million awarded to Michigan Community Capital will help fuel Michigan’s economic momentum and create upward mobility for residents and business opportunities for underserved communities in Michigan. We’re pleased to work alongside MCC to bring more of these beneficial, place-based projects to the state,” said Jeff Mason, CEO of the MEDC, the state’s chief marketing and business attraction arm that administers programs and performs due diligence on behalf of the Michigan Strategic Fund. “The decision by CDFI Fund to recognize and support the work of MCC emphasizes the strength of Michigan’s community development programs,” Mason said.
MCC has invested in various mixed-use and mixed income multi-family housing projects. In July 2017, MCC invested in a project led by TC 637 Michigan, LLC. The $7.8MM project in Grand Rapids included replacing low density, functionally obsolete and vacant single-family homes with a medium density, mixed-use, multi-family apartment building consisting of 44 residential units. One hundred percent of the residential units are being leased on a rent-capped basis. Another project, led by Lofts on Lake Street LCC and located in downtown Boyne City, offers the unique opportunity to create market rate housing mixed with workforce housing in a desirable and walkable location.
“MCC will use this very scarce federal resource to invest in some of the most impactful but financially challenging projects across the state over the next 18 months. These projects will include place-based investments to rehabilitate vacant, blighted and contaminated property; investments in businesses that make jobs accessible to households of modest means; and to improve access and affordability to fresh food alternatives,” said Eric Hanna, president and CEO of Michigan Community Capital.
The NMTC Program helps economically distressed communities attract private investment capital. This federal tax credit helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible. The CDFI Fund is operated by the U.S. Department of Treasury to complete the vision of an America where all people and communities have access to investment capital and financial services that they need to prosper.
Michigan Community Capital is a supporting entity of the Michigan Strategic Fund that facilitates investment in attainable housing projects. Attainable housing is defined as housing targeted at individuals and families with incomes between 60 and 120 percent of area median income. MEDC and its partners have identified an unmet need for attainable housing in many communities across the state as rental rates have continued to rise, primarily in central business districts and other commercial cores.
MCC has invested $145M from previous NMTC’s rounds in various projects around the state in addition to its current focus on attainable housing projects. MCC has also been supported by the Michigan Strategic Fund with a $22.5M low cost loan which it utilizes to make risk capital investments in transformational mixed-use and attainable housing projects across the state. MCC has closed four attainable housing projects using MSF funds and has another seven projects in the pipeline.
Michigan was selected from a pool of 214 applicants that requested a total of $14.8 billion in tax credit allocation authority from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. The 73 award recipients are headquartered in 35 different states, Puerto Rico and the District of Columbia.
Courtesy From Michigan Economic Development Corporation (MEDC)
We are an independent non-profit 501(c)(3) tax-exempt public charity whose Board of Directors is comprised of representatives of low to moderate income communities across Michigan. We have received $145M in Federal New Market Tax Credit Allocation Authority, and in addition to MEDC and MSHDA, we receive support from our Bank Partners.
We lend and invest in income diverse, race diverse, and occupationally diverse communities to counter gentrification and create upward mobility and wealth building opportunities for underserved individuals and families in Michigan. Our loans and investments are frequently qualified under the Community Reinvestment Act as meeting a public welfare purpose.
We lend and invest, with well below market returns, in a wide variety of projects alongside developers, community and neighborhood associations, as well as non-profit local community development groups.
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