Author: Michigan Community Capital
Michigan Community Capital supports Neogen Corporation expansion with $13 million in New Markets Tax Credit allocation
FOR IMMEDIATE RELEASE
DECEMBER 15, 2022
LANSING, Mich. – Neogen Corporation is undertaking an approximately $110 million expansion of their Lansing food safety facility with the support of $13 million in New Markets Tax Credit (NMTC) allocation from Michigan Community Capital (MCC) to support equipment purchases exceeding $40 million. Located between E. Shiawassee Street and E. Michigan Avenue in Lansing, the expansion includes the construction of a new three-story, 176,000-square-foot manufacturing building, that will house new manufacturing and laboratory equipment for the testing and releasing of food safety products. The project is advancing agricultural technology and food innovation supporting the state’s goal of solidifying Michigan as a leader in the life sciences and agribusiness sectors.
Founded in 1982, Neogen Corporation is a Lansing-based company that provides a comprehensive range of solutions and services for the food processing, animal protein, and agriculture industries. Its products include food safety diagnostic test kits, animal pharmaceuticals, disinfectants, and drug detection products among many others.
Over the next seven years, Neogen’s expansion will create more than 100 new jobs accessible to individuals with less than a four-year college degree, and dozens of positions to be filled by professional and technical roles in the food safety industry. Positions will meet living-wage minimums, be full time, and eligible for industry-competitive benefits.
Currently considered a brownfield property, Neogen is investing more than $4 million into remediation activities to prepare the expansion site for construction. Upon completion, the newly constructed facility will achieve a Leadership in Energy and Environmental Design (LEED) Silver certification.
“Neogen is pleased to expand our Lansing footprint and offer new opportunities for workers within our Mid-Michigan community,” said Jerome Hagedorn, Vice President of North American operations at Neogen. “We are proud to work collaboratively with many organizations across Michigan, including Michigan Community Capital, as we continue investing in our state and create good-paying jobs within the food safety industry.”
“Michigan Community Capital is thrilled to support Neogen’s expansion in the city of Lansing. The influx of more than 100 new full-time positions in the city will support surrounding businesses, shops, and restaurants, generating year-round economic activity in the region,” said Eric Hanna, President and CEO at Michigan Community Capital.
Chase is serving as NMTC equity investor for the financing in the project.
“We’re proud to continue our strong relationship with MCC and support the expansion of the Neogen Lansing food safety facility through our New Markets Tax Credit equity investment,” said James Simmons, Executive Director, Chase Community Development Banking. “Through our NMTC platform, we remain committed to using this impactful financing tool to support continued investment and economic development across Michigan and the US.”
The Michigan Economic Development Corporation (MEDC) is also supporting this project. The Michigan Strategic Fund (MSF) is supporting the City of Lansing with state tax capture in a brownfield tax increment financing plan valued at approximately $1.5 million to support site readiness and environmental clean-up. The MSF has also approved a Michigan Brownfield Business Development Program (MBDP) grant valued at $324,000 to support the job creation made by Neogen Corporation.
“Congratulations to the team at Neogen on your continued growth and success! We’re pleased to support your expansion in Michigan and appreciate this vote of confidence in the strength of our talented workforce and attractive business climate,” said Quentin L. Messer, Jr., CEO of MEDC and President and Chair of the MSF Board. “This project will not only bring more than 100 good life sciences, R&D, and professional services jobs to Mid-Michigan, but it will also transform an underutilized property and bring new economic activity to downtown Lansing. We’re proud to join our partners at MCC, the Lansing EDC and the City of Lansing to support this project, and look forward to working with Neogen to grow, add even more jobs and provide greater employment for our friends and neighbors in mid-Michigan.”
The Neogen expansion is being further supported by the Lansing Brownfield Redevelopment Authority (LBRA) and the City of Lansing with funding of $30,000 for environmental assessment and fuel tank removal, and by committing to using local tax increment financing to reimburse Neogen for up to $3,500,000 in eligible brownfield clean-up and site preparation activities.
“The Lansing EDC and City of Lansing have partnered with Neogen on multiple expansion projects over the last 20 years. This most recent expansion project is further proof that using the power of public-private partnerships to help local businesses stay and grow is mutually beneficial,” said Karl Dorshimer, President and CEO of the Lansing Economic Development Corporation.
For more information on Neogen, visit www.neogen.com.
About Michigan Community Capital
Michigan Community Capital (MCC) is a non-profit diversified public-private partnership that supports the missions of the Michigan Economic Development Corporation (MEDC) and the Michigan State Housing Development Authority (MSHDA) by aggregating capital and facilitating the financing and development of low-income and attainable housing, and the redevelopment of complex brownfield sites within the State of Michigan. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and the only Community Development Entity (CDE) that deploys this resource solely throughout the entire State of Michigan. Over its 16-year history, MCC has supported over $1 billion in project financing, successfully attracted $380 million in federal New Markets Tax Credits, and helped to create over 750 housing units and 1.9 million square feet of commercial, retail and industrial space to facilitate job creation and expansion. MCC provides products in four key pillars: housing equity, bridge and gap lending, New Markets Tax Credits, and property insurance for Low-Income Housing Tax Credit projects. For more information on MCC visit michigancommunitycapital.org.
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Michigan Community Capital
media@miccap.org
Allocation will support projects in low-income census tracts within the State of Michigan
FOR IMMEDIATE RELEASE
October 31, 2022
LANSING, Mich. – Michigan Community Capital (MCC) is pleased to announce their award of $60 million in New Markets Tax Credit (NMTC) allocation from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) on Friday, October 28. For the second annual funding round in a row, MCC has been awarded the highest allocation amount available which is reflective of MCC’s track record for deploying New Markets Tax Credits into impactful and transformative projects in rural and urban communities throughout Michigan.
“We are proud to continue to partner with the Michigan Economic Development Corporation and S. B. Friedman & Associates to attract valuable federal resources to support Michigan,” said President and CEO of Michigan Community Capital, Eric Hanna. “We look forward to working together to deploy these valuable federal resources to support underserved communities in Michigan.”
“These resources are an investment in Michigan and our future, and I’m proud to support the programs that have provided this funding – which are proven to be successful job creators and economic drivers,” said Michigan Senator Gary Peters. “We need to continue to invest in communities across our state and make sure all Michiganders have the tools they need to succeed no matter where they live.”
With this latest award, MCC will provided much need financing to projects located in historically disinvested communities throughout the state of Michigan. Allocation will be directed to projects prioritizing:
- Creating or expanding healthy food access
- Developing mixed-use, mixed-income housing in low-income areas of opportunity
- Supporting skilled training programs and/or expanding services for low-income families
- Generating living-wage jobs through manufacturing or community-based projects
Since 2005, Michigan Community Capital has received $380 million in New Markets Tax Credit allocations and has remained the only Community Development Entity deploying efforts solely in Michigan at a state-wide level. To date, MCC has invested NMTC allocations into 35 projects across the state resulting in over 6,900 full-time jobs created or retained, more than 700 housing units established, and the development of 1.9 million square feet of commercial, retail, and industrial space.
To learn more about Michigan Community Capital’s impact or would like to explore leveraging New Markets Tax Credit for your project, click here.
To learn more about the New Markets Tax Credit Program visit www.cdfifund.gov/nmtc.
About Michigan Community CapitalMichigan Community Capital (MCC) is a non-profit diversified public-private partnership that supports the missions of the Michigan Economic Development Corporation (MEDC) and the Michigan State Housing Development Authority (MSHDA) by aggregating capital and facilitating the financing and development of low-income and attainable housing, and the redevelopment of complex brownfield sites within the State of Michigan. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and the only Community Development Entity (CDE) that deploys this resource solely throughout the entire State of Michigan. Over its 16-year history, MCC has supported over $1 billion in project financing, successfully attracted $380 million in federal New Markets Tax Credits, and helped to create over 750 housing units and 1.9 million square feet of commercial, retail and industrial space to facilitate job creation and expansion. MCC provides products in four key pillars: housing equity, bridge and gap lending, New Markets Tax Credits, and property insurance for Low-Income Housing Tax Credit projects. For more information on MCC visit michigancommunitycapital.org.
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Michigan Community Capital among Community Development Entities supporting The Watershed development by Root and Branch Real Estate
FOR IMMEDIATE RELEASE
September 8, 2022
The Watershed, a development by Root and Branch Real Estate, will redevelop three underutilized sites downtown Sturgis by constructing a new modern, five-story, 25,000-square-foot mixed-use building. The roughly $11 million-project is being supported with $10 million in New Markets Tax Credit allocation from Michigan Community Capital in addition to contributions from the City of Sturgis, Michigan Economic Development Corporation, and Old National Bank.
Located at 108 W Chicago Road, The Watershed will create 23 residential units above a first-floor restaurant space. Upper four floors of the building will be a mix of studio, one-bedroom, and two-bedroom apartments. Six apartments will be income-restricted to renters earning upto 80% of the area median income while 13 units are expected to to lease at rents that would cause them to be “naturally occurring affordable” at these same income levels.
The new first-floor steakhouse-style restaurant is expected to create 30 full-time jobs paying a living wage in a severely distressed, non-metro census tract with a 25% poverty rate and a median family income of 59% the area median income. 29 of the new 30 positions will be accessible to applicants with accredited education less than a four year degree. Additionally, the restaurant will partner with GT Independence, a project partner company, to create a disability employment program. This program will focus on helping local people with physical or intellectual disabilities obtain paid internships with the steakhouse, receive support designed to help the employee identify and achieve career goals, develop job-related skills, and plan for advancement within or outside of the restaurant.
Root and Branch President, John Carmichael said, “I am very excited about the impact this project will have on our community. The facility will help to alleviate a significant housing shortage and bring added vibrancy to Sturgis’ downtown. This collaboration with great organizations like Michigan Community Capital and GT Independence will also bring opportunities for people who are traditionally underemployed to have meaningful, competitive employment.”
The Watershed project is receiving $10 million in New Markets Tax Credit allocation from Michigan Community Capital.
“MCC has a history of investing in rural communities. Attractive and vibrant downtowns are critical to the health and growth of rural communities, and we applaud the Root and Branch team for making investments that serve so many different needs at the same time,” said Eric Hanna, president and CEO at Michigan Community Capital. Projects like this impact how people feel about themselves, and their community and this project will be an asset for decades to come.”
Michigan Economic Development Corporation is providing the project with loans totaling $4.1 million through the Michigan Community Revitalization Program (MCRP).
“The Watershed project will transform vacant property into a vibrant, mixed-use building in downtown Sturgis, creating job opportunities for people with disabilities and providing needed housing for area residents,” said MEDC Executive Vice President of Economic Development Incentives Michele Wildman. “At MEDC, we are committed to supporting transformative projects that help create vibrant, resilient communities, while supporting our strong economic recovery statewide. We are pleased to collaborate with Michigan Community Capital and other partners on this project, which will help make Sturgis an even more attractive place to live, work, visit, and play.”
In addition, an affiliate of Old National Bank is also serving as a tax credit investor in the project.
ONB Community Equity, a subsidiary of Old National Bank, is honored to support the financing of this catalytic project for the city of Sturgis that will bring quality housing and accessible job opportunities for all individuals to the historic downtown area,” said Mike Harbaugh VP and tax credit relationship manager at Old National Bank.
The City of Sturgis also supported the The Watershed project with a $400,000 development grant and the approval of a brownfield tax increment financing (TIF) plan. Sturgis Area Community Foundation contributed a $500,000-grant.
The Watershed is well-aligned with the City of Sturgis Master Plan which highlights the need for a greater variety of housing types to ensure people of all ages and income levels can live and succeed in Sturgis. Additionally, the project aligns with the plan’s finding that residents’ top priority for downtown retail options is to add more food and beverage establishments.
A groundbreaking event was held at the site on August 11, 2022. Construction is anticipated to be completed in fall 2023.For more project information, and to follow progress, visit: thewatershedsturgis.com.
About Michigan Community Capital
Michigan Community Capital (MCC) is a non-profit diversified public-private partnership that supports the missions of the Michigan Economic Development Corporation (MEDC) and the Michigan State Housing Development Authority (MSHDA) by aggregating capital and facilitating the financing and development of low-income and attainable housing, and the redevelopment of complex brownfield sites within the State of Michigan. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and the only Community Development Entity (CDE) that deploys this resource solely throughout the entire State of Michigan. Over its 16-year history, MCC has supported over $1 billion in project financing, successfully attracted $320 million in federal New Markets Tax Credits, and helped to create over 750 housing units and 1.3 million square feet of commercial, retail and industrial space to facilitate job creation and expansion. MCC provides products in four key pillars: housing equity, bridge and gap lending, New Markets Tax Credits, and property insurance for Low-Income Housing Tax Credit projects. For more information on MCC visit michigancommunitycapital.org.
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