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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. 

CDFI Fund Press Release

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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