New development brings mixed-use building with housing to support area growth
FOR IMMEDIATE RELEASE
September 13, 2021
LANSING, Mich. – After years of working behind the scenes, Michigan Community Capital will celebrate the start of a new vibrant mixed-use project in downtown Grayling next week. Located at 100 Michigan Avenue, the Sawmill Lofts project will develop a vacant and underutilized site into a nearly 40,000-square-foot, five-story building with over 3,000 square feet of commercial space and 42 new apartments. Total project costs are projected to be approximately $12 million with support provided by Michigan Community Capital (MCC); Michigan Economic Development Corporation (MEDC); Michigan Department of Environment, Great Lakes, and Energy (EGLE); IFF; the City of Grayling and Crawford County.
“It has taken over two years working with strong local and state partners to bring this project to life,” says Marilyn Crowley, Vice President of Investments for MCC. “This will mark the first multi-family building permit pulled in the city of Grayling in many years. It is crucial to bring housing for workers in growing industries to attract and retain talent in the region.”
Once complete, the newly constructed building will offer large storefronts, and a residential lobby and lounge on the first floor. The upper four floors will be a mix of studio, one-bedroom and two-bedroom floorplans with some apartments overlooking the Au Sable River. Resident amenities will include onsite parking, electronic key access, an elevator, onsite staff and leasing office, and the resident lounge. Tenants will also enjoy walking distance access to downtown conveniences and local trails.
“The reactivation of this long-underutilized space will bring energy and activity to the middle of our downtown,” says Rae Gosling, Director of Grayling Main Street/Downtown Development Authority. “We are looking forward to having a better-connected district that encourages residents and visitors to experience all that our downtown offers.”
Identified as a priority site for redevelopment by the city, the new housing is expected to support a variety of residents including employees hired by surrounding growing businesses.
“Grayling and our surrounding communities have been in great need of housing, including rental housing, for many years. As Grayling continues to grow and bring in new businesses and job opportunities, the need for housing continues to increase. Sawmill Lofts will help provide much needed rental housing in our area, and one of the biggest benefits is that it will be right in our quaint little downtown,” said Traci Cook, Executive Director of the Grayling Regional Chamber of Commerce.
MEDC provided an investment of $4.4 million in equity for the project under the Community Revitalization Program. The project meets the priorities of this program because it will increase the amount of residents living downtown, improve the vitality of downtown through increased investment and activity, and redevelop a vacant and contaminated site into a mixed-use building. In addition, the project will help provide a market comparable to encourage other investments in this region.
“The Sawmill Lofts project will supply downtown Grayling with much-needed affordable housing for the area workforce while also bringing attractive commercial space,” MEDC Sr. Vice President of Community Development, Michele Wildman. “As a certified Redevelopment Ready Community and participant in the Michigan Main Street program, the city of Grayling is proactively positioning itself for new private investment and continued growth. We are pleased to collaborate with Michigan Community Capital and our local partners in supporting transformative projects like Sawmill Lofts that help create vibrant, resilient communities where people want to live, work, visit and play.”
The project will utilize a $1 million grant from EGLE for environmental remediation on the site. This work is further supported by an approved $1.4-million brownfield tax increment financing plan through the City of Grayling and Crawford County.
“EGLE is excited to be part of this fantastic downtown revitalization project,” said Julie Lowe, Brownfield Coordinator at EGLE. “This project is a great example of how EGLE’s Brownfield Program helps to create jobs and investment and increases property values and tax revenues. Brownfield redevelopment projects like the Sawmill Lofts help to improve communities, the environment, the economy, and public health and safety,” she continued. “EGLE’s brownfield incentive programs assist with environmental remediation and redevelopment of brownfield sites to promote economic development in both rural and urban communities across Michigan.”
IFF, a Community Development Finance Institution, has approved a $3.7 million loan for the project.
“IFF, a mission-driven nonprofit lender that helps communities thrive, is proud to support the hard work of Michigan Community Capital to bring Sawmill Lots to Grayling. In our work with Michigan Community Capital, we’ve witnessed the team’s skill at pulling together the public and private resources required to construct new, high-quality housing. We look forward to construction completion and move-in for dozens of new residents who will call Sawmill Lofts home,” said Stephanie Socall, Managing Director of Lending, Affordable Housing at IFF.
Integrated Architecture has been selected as the architect, with Midwest Construction Group serving as general contractor. Site preparation is underway with remediation taking place under the supervision of Triterra Environmental.
The anticipated opening of Sawmill Lofts is set for the beginning of 2023.
Community members are encouraged to attend the groundbreaking event planned for Wednesday, September 22, 2021. Event details can be found online at michigancommunitycapital.org.
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 a certified Community Development Entity (CDE). 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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Allocation will support projects in low-income census tracts in the State of Michigan
FOR IMMEDIATE RELEASE
LANSING, Mich. – On September 1st, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced an award of $65 million in New Markets Tax Credits to Michigan Community Capital (MCC) that will spur investment and economic growth in low-income urban and rural communities state-wide. Michigan Community Capital is one of 100 Community Development Entities (CDEs) that were awarded tax credit allocations, made through the calendar year (CY) 2020 round of the New Markets Tax Credit Program (NMTC Program).
Since 2005, Michigan Community Capital has received $320 million in New Markets Tax Credit allocations and has remained the only CDE deploying efforts entirely in Michigan at a state-wide level. These awards were invested in projects such as the Allen Neighborhood Center in Lansing, Sugar Hill in Detroit, Hudsonville Creamery expansion in Holland, Peterson Farms in Hart, and UP Paper in Manistique. To date, MCC has invested NMTC allocations into 28 projects across the state resulting in over 6,500 full-time jobs created or retained, more than 450 housing units established, and the development of 1.3 million square feet of commercial, retail and industrial space.
“We are proud to continue to partner with the Michigan Economic Development Corporation and SB Friedman Development Advisors to attract valuable federal resources to support Michigan priority projects,” said Eric Hanna, President and CEO of Michigan Community Capital. “We will prioritize using these funds to increase healthy food access in food deserts, promote mixed-income housing, support skilled training programs, expand services for low-income families, and to create living-wage jobs for Michiganders.”
The 100 CDEs receiving awards this week were selected from a pool of 208 applicants that requested an aggregate total of $15.1 billion in tax credit allocation authority. The award recipients are headquartered in 34 different states and the District of Columbia.
Historically, NMTC Program awards have generated $8 of private investment for every $1 invested by the federal government. Through the end of fiscal year 2020, NMTC Program award recipients deployed almost $56 billion in investments in low-income communities and businesses; with impacts such as the creation or retention of nearly 871,000 jobs, and the construction or rehabilitation of nearly 231.5 million square feet of commercial real estate across the US.
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 a certified Community Development Entity (CDE). Over its 16-year history, MCC has supported over $1billion 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.
Learn more about other New Markets Tax Credit projects MCC have invested in here.
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Michigan Community Capital supports Dakkota Integrated Systems’ $45-million manufacturing expansion with $8.3 million in New Market Tax Credits
FOR IMMEDIATE RELEASE
JULY 22, 2021
LANSING, Mich. – Dakkota Integrated Systems will continue facility expansions with assistance from a New Markets Tax Credit (NMTC) allocation from Michigan Community Capital (MCC). The project supports the complex assembly of the Instrument Panels for Stellantis Jeep Grand Cherokee at both the Detroit Assembly Complex Mack and Jefferson North Assembly, which are both locally built. The expansion, which started in 2020, will create 300,000 square feet of manufacturing space at the former site of Kettering High School.
The project will create 473 new full-time equivalent jobs in a census tract where 55.7% of the population falls below the poverty line. 446 of these jobs are accessible to people with less than a four-year degree. Benefits for these positions include health insurance, 401K contribution, paid vacation time, short- and long-term disability, job training tuition reimbursement, and education for personal finances, all of which will greatly benefit the families of these new workers.
“We are appreciative to Michigan Community Capital, the local community, Chase Bank and our other financial partners for supporting Dakkota’s expansion in Detroit,” said Gary Caldwell, Chief Financial Officer at Dakkota Integrated Systems. “The New Markets Tax Credit enhances our mission to create sustainable job opportunities in underrepresented communities for many years to come. It will allow us to achieve our goal of creating high-quality products for our customers at competitive pricing and profitability, which is critical to our success and allows us to achieve a winning environment for all.”
New Markets Tax Credits are a federal subsidy tool administered by the U.S Department of Treasury designed to attract capital to projects that support low- and moderate-income households and communities. MCC is the only Community Development Entity (CDE) that deploys this resource solely throughout the entire State of Michigan. Since the organization’s formation in 2004, MCC has secured a total of $255 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 including mixed-income housing and commercial businesses that benefit low-income households.
“Dakkota Integrated Systems has continued to take its role as a corporate citizen very seriously, has been thoughtful about its compensation and hiring practices, and is truly demonstrating a commitment to ‘walking the walk’ by focusing on hiring Detroiters,” said Eric Hanna, President and CEO of Michigan Community Capital. “Those practices, which allow Detroiters to invest in themselves, are ultimately the key to giving the people of Detroit agency over their future. We could not be prouder of Dakkota, and we look forward to working with them and with companies like them in the future.”
Chase is investing $2,743,650 in New Markets Tax Credits into the project.
“We’re thrilled to work with Michigan Community Capital, Invest Detroit, and Dakkota Integrated Systems on their facility expansion, which will bring jobs to the Detroit community,” said James Simmons, Executive Director, Community Development Banking, Chase. “Through New Markets Tax Credit investments, we continue to support the building and revitalization of communities where we live and work.”
Invest Detroit is serving as a separate Community Development Entity in the project allocating $1,750,000 in New Markets Tax Credits.
“Invest Detroit’s mission is to support projects that create jobs and build a better future for all Detroiters,” said Senior Vice President of Lending, Marcia Ventura. “That’s why we are thrilled to partner with Michigan Community Capital, Chase Community Banking, the City of Detroit, the Michigan Economic Development Corporation, and Hunting Bank in a collaborative effort to bring this important project to Detroit. The Dakkota manufacturing facility is a job-creator for Detroiters. Partnering with Detroit at Work, they have already placed 109 city residents in full-time, high-quality positions. Collaboration makes these projects happen and is the key to a bright economic future for Detroit and our residents.”
About Dakkota Integrated Systems, LLC
Dakkota Integrated Systems was founded in 2001 to supply assembly and sequencing services for the original equipment manufacturer (OEM) automotive market. Specific products include suspensions, instrument panels, overhead systems, center consoles, cooling modules, bumper & grills, and general sequencing. The Company is headquartered in Michigan and has 14 operational locations, including out-of-state facilities in Ohio, Kentucky, Illinois, and Windsor, ON. The Company excels at providing “just-in-time” products to support auto manufacturing. Various levels of technology are employed including automation, robotics, scanning and sophisticated data collection with analysis in order to provide a high level of repetitive quality and integrity of the Company’s products/services. This has allowed the Company to continue to grow and support the livelihood of its more than 1,000 Michigan employees and more than 2,350 team members worldwide
About Michigan Community Capital
Michigan Community Capital (MCC) is a non-profit diversified Public Private Partnership that supports the mission 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 US Treasury certified Community Development Financial Institution (CDFI) and a certified Community Development Entity (CDE). MCC has successfully attracted federal New Markets Tax Credits, supported over $900 million in project financing and helped to create over 750 housing units and over 950,000-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.
