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. michigancommunitycapital.org
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We are pleased to announce that Michigan Community Capital has received a $65-Million New Markets Tax Credit allocation from the US Department of Treasury CDFI Fund!
This is the 6th consecutive award MCC received from the CDFI Fund and the 4th consecutive year MCC has received the highest amount allocated.
This award will be deployed into transformational community and economic development projects around the state. Our top priority projects include:
Creating or expanding healthy food access
Developing mixed-use, mixed-income housing in low-income areas of opportunity
Creating quality and accessible jobs through manufacturing or community-based projects
Supporting skilled training programs and/or expanding services for low-income families
Competition for these credits continues to be fierce, and the CDFI Fund has recently tightened deployment criteria. This award was made possible in no small part by partners at SB Friedman Development Advisors, Michigan Department of Labor and Economic Opportunity, Michigan Economic Development Corporation, and Michigan State Housing Development Authority.
Thank you to our partners for your continued support of MCC.
Click here to explore developments that have received NMTC investments from Michigan Community Capital.
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.
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.
