New Markets Tax Credits invested into Tommy Car Wash Systems Expansion
Michigan Community Capital among CDE’s supporting Tommy Car Wash Systems development with New Markets Tax Credit allocations
January 3, 2022
FOR IMMEDIATE RELEASE
LANSING, Mich. – Tommy Car Wash Systems will expand its manufacturing capacity by constructing a new headquarters and manufacturing facility with $13 million in New Markets Tax Credit (NMTC) allocated from Michigan Community Capital (MCC) last week.
The site chosen for this expansion has been sitting vacant for more than 20 years along Waverly Road in southeast Holland, Michigan. The new $32.6-million development will include a roughly 245,000-square-foot building to house production space, assembly area, office space and a demonstration center. Tommy Car Wash Systems will occupy 85% of the resulting space, and Tommy’s Express will use the rest for offices. The corporate offices will also allow franchise owners from across the country to come to the corporate office for meetings and training.
Tommy Car Wash Systems’ expansion will create or retain over 300 new full-time equivalent jobs in a census tract where 34.8% of the population falls below the poverty line. More than 200 of these jobs are accessible to people with accredited education under a four-year degree.
As a recipient of the New Markets Tax Credit allocation, Tommy Car Wash Systems will continue to provide training opportunities to new and existing employees; make available opportunities for advancement to employees, including employees with lower levels of education; utilize recruitment partnerships with Holland Rescue Mission, Western Michigan Adult and Teen Challenge, 70 x 7 nonprofit, Preferred Solutions, and Grand Valley State University.
“Tommy’s is looking forward to bringing this modern building design normally found in larger cities to Holland, Michigan,” said Ryan Essenburg, President and Chief Innovation Officer at Tommy Car Wash Systems and Tommy’s Express Car Wash. “From this location, we will be able to remotely monitor and control hundreds of car wash locations all over the world with new state of the art technology. The rapidly growing Tommy’s Express Car Wash brand has driven ground-up development growth never before seen in the car wash or franchise industries. We’re very grateful for the New Markets Tax Credit program supporting this project and all the organizations that participated in making it happen.”
Phase I project costs for the Tommy Car Wash System expansion are expected to be roughly $32.6 million; Michigan Community Capital will provide $13 million in New Markets Tax Credit allocation.
“Tommy Car Wash Systems is an impactful employer in the area,” said Eric Hanna, President and CEO at Michigan Community Capital. “Supporting this project means supporting over 300 positions and utilizing a property that has been vacant for over 20 years. Tommy’s commitment to creating high-quality employment opportunities and on-the-job training aligns with the values of Michigan Community Capital.”
Cinnaire and Old National Bank are also supporting the project with New Markets Tax Credit allocation.
“At Cinnaire, we make it a priority to advance healthy communities,” said Peter Giles, Cinnaire Vice President, Business Development. “Access to high-quality job opportunities is one of the most important components of a healthy community. Tommy Car Wash Systems has a 50-year history of providing employment opportunities that allow team members to build their skills with an innovative company focused on giving back to the communities it serves. The New Markets Tax Credit will support Tommy Car Wash Systems to revitalize a blighted property while creating economic impact, supporting job growth, and strengthening the Holland community. This project is a prime example of how the NMTC brings capital to communities that need it most and we look forward to seeing the vision of this new facility become a reality.”
In addition to Old National Bank’s $7-million NMTC allocation, they are also serving as a tax credit investor in the project.
“Old National is privileged to be a part of the financing team for this project,” said Mike Harbaugh, Vice President at Old National Bank. “One of the focuses of Old National’s New Markets Tax Credit platform is investing in businesses that create jobs in distressed communities. This site location has been vacant for some time, and is in an area with a 34.8% poverty rate. The new facility will allow Tommy’s to scale their business while providing quality and accessible jobs for people in West Michigan. Tommy’s will also continue to build on its employee training and advancement opportunities with this expansion, and the ONB team is excited to see it all take shape.”
Fifth Third Bank is supporting the project as a direct lender and leverage lender.
“Our team at Fifth Third is grateful for the opportunity to support Tommy’s as they make this important investment in their business,” said Scott Lubbers, Senior Vice President of Commercial Banking at Fifth Third Commercial Bank. “Tommy’s growth will continue to benefit our economy for years to come.”
To learn more about Tommy Car Wash Systems, visit tommycarwash.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.