Category: Press Release

New Markets Tax Credits Invested into Hollingsworth Logistics Group Expansion

Dearborn Business Expansion Expected to Retain and Create Hundreds of Jobs

FOR IMMEDIATE RELEASE
October 25, 2024

LANSING, Mich. – Hollingsworth Logistics Group, LLC (Hollingsworth), a Native American-owned company providing logistics services for sectors including aerospace, automotive, and food and beverage, has received New Markets Tax Credit (NMTC) allocations from Michigan Community Capital (MCC), Invest Detroit, and U.S. Bancorp Impact Finance to support its expansion. The project includes the acquisition and rehabilitation of a 100-year-old building located at 14225 W. Warren Avenue in Dearborn.

The acquired 864,000-square-foot building will serve as Hollingsworth’s headquarters, featuring a company warehouse and offices. Planned upgrades include the replacement of all major building systems (HVAC, plumbing, roof, elevators), new windows, a façade rebuild, and the reconfiguration and expansion of the shipping and receiving dock doors. The first phase of the project is expected to exceed $24 million, improving the operational efficiency of the company.

The project is set to create approximately 265 jobs over a ten-year period and retain more than 700 full-time positions in a highly distressed census tract with a poverty rate of 34.4% and an unemployment rate of 1.5 times the national average. Job roles will include entry-level packagers, inventory control specialists, operation support team members, and corporate office personnel. Comprehensive benefits include medical insurance, a 401(k) plan with up to a 5% match, paid time off, and personal career coaching. Notably, 76% of the jobs will be accessible to individuals without a four-year degree.

“Hollingsworth has always invested in and supported the communities we operate in. With over 30 years of history in Dearborn, we are proud to continue this philosophy not only through financial investment, but by providing hundreds of jobs for families and giving back in any way we can,” said Michael McNamara, president of Hollingsworth Logistics Group, LLC.

Michigan Community Capital contributed $10 million in NMTC allocation to support the expansion.

“We are excited to partner with a company that understands the value of training and career advancement, a company investing in its people and the community of Dearborn,” said Eric Hanna, president and CEO at Michigan Community Capital.

Invest Detroit also provided $10 million in NMTC allocation for the project.

“Helping Hollingsworth stay rooted in a neighborhood that serves as a nexus of culture, multilingual communities, and a gateway between Detroit and Dearborn demonstrates the critical role New Market Tax Credits play in our development ecosystem,” said Marcia Ventura, senior vice president of lending at Invest Detroit. “Hollingsworth’s commitment to fostering an inclusive work environment—respecting local faith communities, offering language assistance, and providing career opportunities with a living wage—makes us proud to support the capital that keeps this business thriving locally.”

U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, is the NMTC investor in the project and provided $3.25 million in allocation.

“We’re pleased to serve as the NMTC investor and help bring tangible impact to the Dearborn community,” said Tom Oldenburg, senior vice president of business development for Impact Finance. “We believe everyone deserves to live in a thriving community with access to opportunity and are excited about the number of jobs the expansion is expected to create.”

“The restoration of the historic Albert Kahn-designed building will serve as both a revitalization of a Dearborn landmark and a catalyst for economic growth. Hollingsworth’s expansion will create hundreds of jobs and preserve over 700 positions, driving significant opportunity in downtown east Dearborn,” said State Representative Alabas Farhat (D-Dearborn).

The expansion aligns with the Dearborn 2030 Master Plan and includes placemaking and public safety enhancements, supporting the City of Dearborn’s broader Warren Avenue Corridor Improvement Project. Hollingsworth will collaborate with the City of Dearborn and Wayne County to add a stoplight and crosswalk on Warren Avenue, improving safety for employees walking to and from work and increasing foot traffic for surrounding businesses.

Michigan Community Capital

Michigan Community Capital is a 501(c)(3) nonprofit that exists to promote community and economic development, the creation of wealth and job opportunities; and to facilitate investment of private and public capital in Michigan. MCC is focused on driving economic mobility of low- and moderate-income Michigan residents and drives community development impacts in four key areas: Real Estate Development, CDFI lending, New Markets Tax Credits, and affordable Property Insurance. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and a Community Development Entity (CDE). Since 2005, MCC has supported over $1.3 billion in project financing, successfully attracted $510 million in federal New Markets Tax Credits, and helped to create over 1,500 housing units and facilitated the creation and/or retention of over 5,000 high-quality, accessible jobs.

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ALDI Coming to Two Rural Michigan Communities

Alpena and Clare soon to welcome ALDI Grocery Stores

FOR IMMEDIATE RELEASE

March 18, 2024

LANSING, Mich. – ALDI is investing approximately $9.9 million to bring two new locations to rural communities in Michigan. ALDI will build and equip the two new stand-alone grocery stores in rural Michigan communities that together, will comprise approximately 42,900 square feet of space and feature a range of products including fresh meat and seafood, organic produce, and pantry essentials. The developments are being supported with an $8-million New Markets Tax Credit allocation from Michigan Community Capital.

ALDI is one of America’s fastest growing retailers and offers shoppers groceries at everyday low prices in more than 2,300 stores in 38 states. ALDI focuses on the groceries commonly purchased by shoppers, primarily under its exclusive brands, and is committed to providing customers with the highest quality products at the lowest possible prices. ALDI strives to reduce the company’s impact on the environment through an energy efficient store design, including state-of-the-art lighting and refrigeration systems that have reduced energy features and environmentally friendly building materials.

ALDI will bring grocery stores to Alpena and Clare, both rural Michigan communities where increased affordable, fresh food is greatly needed. Approximately 20 new full-time equivalent positions will be created to support the new stores. All positions will be accessible to individuals without a four-year degree and will provide industry-leading benefits including competitive wages, health insurance, 401(k) program and paid time off.

“Michigan Community Capital is committed to leveraging our tools to bring healthy fresh food to underserved communities in Michigan,” said Eric Hanna, president and CEO at Michigan Community Capital. “Alpena and Clare have both identified bringing more grocery options to their community as a high priority, and we are proud to partner with ALDI as they expand their footprint into Michigan rural markets.”

New Markets Tax Credits are a federal subsidy tool administered by the U.S Department of Treasury and designed to attract capital to projects that support low- and moderate-income households and communities. Michigan Community Capital (MCC) is the only Community Development Entity (CDE) that deploys this resource entirely in the state of Michigan. Since the organization’s formation in 2005, MCC has secured a total of $445 million in tax credit allocation through competitive rounds to support Michigan businesses and communities. MCC uses NMTC’s to support job creation, access to healthy food, and mixed-use projects that include mixed-income housing and commercial businesses that benefit low-income households.

U.S. Bancorp Community Development Corporation is serving as the New Markets Tax Credit investor on this project.

About ALDI

ALDI is one of America’s fastest-growing retailers, serving millions of customers across the country each month. Our disciplined approach to operating with simplicity and efficiency gives our customers great products at the lowest possible prices. For seven years running, ALDI has been recognized by the dunnhumby Retailer Preference Index as #1 in Everyday Low Price.* ALDI strives to have a positive impact on its customers, employees and communities by being socially and environmentally responsible, earning ALDI recognition as a leading grocer in sustainability.** In addition to helping protect the planet, ALDI helps customers save time and money through convenient shopping options via in-store, curbside pickup or delivery at shop.aldi.us. For more information about ALDI, visit aldi.us.

**According to Progressive Grocer’s 2023 Top 10 Most Sustainable Grocers list.

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. Since 2005, MCC has supported over $1.3 billion in project financing, successfully attracted $445 million in federal New Markets Tax Credits, and helped to create over 1,500 housing units, 4.3 million square feet of commercial, retail and industrial space to facilitate job creation and expansion and has insured over 22,000 affordable multifamily doors. MCC drives community development impacts in four key areas: Real Estate Development, CDFI lending, New Markets Tax Credits, and affordable Property Insurance. michigancommunitycapital.org

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New Markets Tax Credits Invested into Future Webster Community Center

Michigan Community Capital supports Micah 6’s community redevelopment project in Pontiac, Michigan.

FOR IMMEDIATE RELEASE
March 12, 2024

LANSING, Mich. – Micah 6 Community, a neighborhood-based nonprofit community development corporation dedicated to serving the city of Pontiac, received $15 million in New Markets Tax Credit allocation (NMTC) from Michigan Community Capital (MCC) on Tuesday, March 12, 2024 in support of the Webster Community Center project.

Micah 6 Community plans to transform a vacant former school into the Webster Community Center, which will include a small business incubator, a rentable commercial kitchen and food hub, a gymnasium for community activities, a health clinic, and more. The project will also serve as an indoor transportation center, and will have the only covered bus stop on the west side of M59. Tenants utilizing the community center will specifically use the space for services including:

after school and summer programs for school age children;
art classes and art therapy for all ages;
empowerment programs for families;
a coffee shop;
STEM education;
urgent care services;
dance for school age children;
sports leagues and mentoring for youth;
local food cooperative; and
adult education services.

“This project represents almost seven years of hard work and stubbornness from our team. We knew this project was important for our neighbors and our neighborhood. We believed it before anyone else did. We have diligently pushed through a pandemic, price increases, surprise basement floodings, and more strange circumstances that I can’t even remember, but we never questioned whether this project was worth it,” said Coleman Yoakum, executive director at Micah 6 Community. “There aren’t many people who started with us who are finishing with us. We are grateful for Michigan Community Capital for being there at the beginning, walking this long process with us and crossing the finish line with us.”

Located in Pontiac, the project falls within a “severely distressed” census tract based on a poverty rate of 36.4%, an unemployment rate of 8.6%, and within a designated USDA Food Desert.

This project is expected to retain or create approximately 70 permanent jobs, and 30 positions requiring no more education than a high school diploma. All full-time permanent jobs will be eligible to receive comprehensive benefits including health insurance, life insurance, and a retirement plan.

In November 2022, Michigan Community Capital closed a bridge loan to Micah 6 Community to bridge grant funds from the Michigan Department of Environment Great Lakes and Environment to help finance environmental remediation work at the site. In addition to the $15 million in NMTC allocation, MCC increased the bridge loan to support additional remediation work.

“MCC has been supporting Coleman and the Webster team for several years as they have worked tirelessly and selflessly to create a place that directly meets the needs of the Pontiac community,” said Eric Hanna, president and CEO at Michigan Community Capital. “Historic, adaptive reuse projects are incredibly important because they preserve the cultural identity and history of the neighborhood, bringing the building into the present so that its services can be enjoyed for generations. We commend the team on a big effort and outstanding job bringing such an impactful project to a major milestone!”

National Trust Community Investment Corporation (NTCIC) is providing a $7 million NMTC allocation.

“We are honored to be a part of this project and work with dedicated partners to bring this historic building back to life,” said Kathleen Galvan, Acquisitions Manager at National Trust Community Investment Corporation. “Coleman and the Webster team exemplify the mission of the NTMC program – they listened to and worked hand in hand with the community to create a unique place that serves the needs of their neighbors. Their hard work will touch many lives for years to come.”

PNC Bank is providing $3 million in NMTC allocation and federal historic tax credit equity. A PNC-managed fund is the NMTC investor.

“Over the years, PNC has collaborated with a number of organizations to benefit Pontiac residents and businesses,” said Michael Bickers, PNC regional president for Detroit and Southeast Michigan. “The Webster Community Center is a multifaceted project that will provide critical resources and access to programs that will benefit the city of Pontiac and its residents. PNC is committed to working with developers, governments, and residents to add projects such as this one to communities across the country.”

MEDC provided two sources of capital including a Revitalization and Placemaking (RAP) Grant and a Community Revitalization Program (CRP) Loan.

The Webster Community Center is a community-driven and supported project. The following organizations have financially supported the project: Oakland County, Cinnaire, IFF, Opportunity Resource Fund, EGLE, and others. The following foundations have also collectively contributed more than $5 million in grant funds; Carls Foundation, William Davidson Foundation, Ralph C. Wilson Jr. Foundation, Pontiac Funders Collaborative Community Foundation, Total Health Care Foundation, Ballmer Group, Consumers Energy Foundation, and other various organizations.

Learn more about this project at www.webstercommunity.org.

About Michigan Community Capital

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New Markets Tax Credits Invested into Muskegon Community Clubhouse Project

Michigan Community Capital supports Boys & Girls Club of the Muskegon Lakeshore facility renovation and expansion.

FOR IMMEDIATE RELEASE
March 4, 2024

LANSING, Mich. – Boys & Girls Club of the Muskegon Lakeshore (BGCML) is redeveloping and expanding a long-time fitness center into a community center called the Clubhouse MKG with $5 million in New Markets Tax Credit allocation from Michigan Community Capital (MCC).

The project includes construction of a 10,546-square-foot addition, and the renovation of the aging and fire-damaged 53,000-square-foot fitness center. Serving as a fitness center since 1979, the Clubhouse MKG project will re-establish the 44-year-old building as Muskegon County’s community center and will serve low-income community residents. The Clubhouse MKG will continue to house the Neal Fitness Center, an aquatics center, Boys & Girls Club of the Muskegon Lakeshore, Shape Corp Teen Zone, and i’move Physical Therapy. Once the $10.9-million project is complete, the building will also feature an administration wing with shared office space for BGCML staff and other mission-aligned nonprofits such as Big Brothers Big Sisters.

The renovation will allow BGCML to expand and enhance its full suite of year-round, out-of-school programs that serve low-income Muskegon County youth ages 6 to 18. Youth programming spans three key areas:

Academics: Academic enrichment programming focused on college and career readiness, financial management, STEM learning and exploration, arts, drama, storytelling, and music.
Character and Leadership: Leadership and service opportunities for teens focused on academic success, career prep, and community service.
Healthy Lifestyles: Dynamic wellness programs focused on health education for girls ages 8-17 and healthy activities for boys ages 11-14.

To support these programs, the Clubhouse MKG will include recreation and classroom space, an art studio, a STEM lab, a music recording studio, a youth fishing pier, and commercial kitchen to provide youth with healthy meals during program hours. Additionally, the Neal Fitness Center will provide the Muskegon community with access to affordable fitness and recreation opportunities.

Located in Muskegon, the project falls within a “severely distressed” census tract based on a poverty rate of 10.7%, and an unemployment rate of 7.9%. This project is expected to retain 24 jobs and create approximately 31 permanent jobs. All full-time jobs will be eligible to receive comprehensive benefits including health insurance, life insurance, a retirement plan, and paid time off.

BGCML will work with local colleges and partner nonprofits to fill critical roles throughout the Clubhouse, BGCML, Teen Zone, and Neal Fitness Center. A few of these partners are Pioneer Resources, Goodwill, Senior Resources, and West Michigan Works!.

“Through unwavering dedication, community support, and the transformative impact of the Neal Fitness Center, the Boys & Girls Club of the Muskegon Lakeshore is setting a new standard for youth empowerment and community enrichment,” said Monica Turnbull, Chief Executive Officer at Boys & Girls Club of the Muskegon Lakeshore. “Every child who walks through our doors, and every community member who benefits from the Neal Fitness Center, is one step closer to realizing their potential. This synergy proves that together, we can build a future where every young person is equipped to navigate challenges, seize opportunities, and contribute positively to the community. This is not just an investment in individual futures but a commitment to the collective prosperity and well-being of our entire community.”

MCC is supporting the project with $5 million in New Markets Tax Credit allocation.

“We have full confidence that Clubhouse MKG will be a place where children and families will improve their health, and build skills and relationships that will support them throughout their lives,” said Eric Hanna, president and CEO at Michigan Community Capital. “If COVID taught us one thing, it’s the value of community and relationships, and the impact they have on health and personal development. MCC is thrilled to support such important work during such an impactful time in people’s lives.”

Old National Bank is serving as a Community Development Entity (CDE) lender and is investing $4 million in NMTC allocation.

“The perseverance and commitment that the BGCML staff and community have shown to bring this project to where it stands today is incredible. This renovation will breathe new life into the decades-old building which will be a wonderful community asset for all Muskegon residents,” said Mike Harbaugh, VP, Senior Tax Credit Relationship Manager at Old National Bank. “Kids will have a safe place to build unique skills and expand their opportunities, while adults and seniors can sustain healthy habits at the Neal Fitness Cetner. This facility empowers households across the city and beyond. Old National Bank is honored to have a small role in the ongoing success of the Clubhouse.”

For more information on this project, visit bgclubmuskegon.com.

About Michigan Community Capital

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Award-winning year at Michigan Community Capital

MCC receives nine recognition awards in 2023.

LANSING, MICH. – 2023 was an award-winning year for Michigan Community Capital (MCC) who accepted nine recognition awards for multiple developments and New Markets Tax Credits investments.

Five national recognitions received in 2023 included:

Jack Kemp Excellence in Affordable and Workforce Housing from the Urban Land Institute (ULI) for MCC’s Mt. Pleasant development, Broadway Lofts.
Learn more about this recognition and project here.

Gold Winner for Real Estate Redevelopment & Reuse from the International Economic Development Council (IEDC) for MCC’s Mt. Pleasant development, Broadway Lofts.
Learn more about this recognition and project here.

Gold Winner for Innovative Project Financing from the International Economic Development Council (IEDC) for MCC’s Mt. Pleasant development, Broadway Lofts.
Learn more about this recognition and project here.

Real Estate QLICI of the Year from the 2023 Novogradac Journal of Tax Credits Community Development QLICIs of the Year for MCC’s New Markets Tax Credit involvement in The Freelon at Sugar Hill.
Learn more about this recognition and project here.

Small Business QLICI of the Year from the 2023 Novogradac Journal of Tax Credits Community Development QLICIs of the Year for MCC’s New Markets Tax Credit involvement in Detroit Food Commons.
Learn more about this recognition and project here.

Four regional/state recognitions received in 2023 included:

2023 Tax Credit Award from the Michigan Historic Preservation Network (MHPN) for MCC’s Ludington development, Lofts on Rowe.
Learn more about this recognition and project here.

AIAGR Honor Award from the American Inst. of Architects (AIA) for MCC’s Lansing development, Temple Lofts.
Learn more about this recognition and project here.

Celebration of Regional Growth Award from the Lansing Regional Chamber of Commerce for MCC’s Lansing development, Temple Lofts.
Learn more about this recognition and project here.

New Development of the Year from the Property Management Association of Michigan for MCC’s Lansing development, Temple Lofts.
Learn more about this recognition and project here.

“At MCC, we let our work speak for itself and it’s rewarding to see regional and national stakeholders lift up the work of our incredibly dedicated and talented team,” said Eric Hanna, president and CEO at MCC. “By listening carefully to the needs of the disinvested communities we serve and putting the mission before the money, we inevitably end up with strong projects in stronger communities.”

For 18 years, Michigan Community Capital (formally Michigan Magnet Fund) has invested in transformational community development projects across the state of Michigan that create housing, jobs and access to fresh food through NMTC allocations. Since the organization’s inception, MCC has worked to advance these projects using the best tools possible, even if it means creating new tools or wearing new hats.

Starting in 2018, MCC began taking its lending and investment know-how and started developing projects. As of today, in its development practice alone, nine (9) properties developed and/or co-developed by MCC have led to more than $89 million in investment in Michigan communities, creating 421 new residential units and 68 new permanent jobs, and activating almost 350,000 square feet of indoor real estate. In addition to the nine awards received in 2023, MCC’s developments have previously received one national and two regional awards.

All the awards were made possible by innovative financing structures with public, private and philanthropic partners.

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. Since 2005, MCC has supported over $1.3 billion in project financing, successfully attracted $445 million in federal New Markets Tax Credits, and helped to create over 1,500 housing units, 4.3 million square feet of commercial, retail and industrial space to facilitate job creation and expansion, and has insured over 22,000 affordable multifamily doors. MCC drives community development impacts in four key areas: Real Estate Development, CDFI lending, New Markets Tax Credits, and affordable Property Insurance. michigancommunitycapital.org

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