Michigan Community Capital supports Neogen Corporation expansion with $13 million in New Markets Tax Credit allocation
FOR IMMEDIATE RELEASE DECEMBER 15, 2022
LANSING, Mich. – Neogen Corporation is undertaking an approximately $110 million expansion of their Lansing food safety facility with the support of $13 million in New Markets Tax Credit (NMTC) allocation from Michigan Community Capital (MCC) to support equipment purchases exceeding $40 million. Located between E. Shiawassee Street and E. Michigan Avenue in Lansing, the expansion includes the construction of a new three-story, 176,000-square-foot manufacturing building, that will house new manufacturing and laboratory equipment for the testing and releasing of food safety products. The project is advancing agricultural technology and food innovation supporting the state’s goal of solidifying Michigan as a leader in the life sciences and agribusiness sectors.
Founded in 1982, Neogen Corporation is a Lansing-based company that provides a comprehensive range of solutions and services for the food processing, animal protein, and agriculture industries. Its products include food safety diagnostic test kits, animal pharmaceuticals, disinfectants, and drug detection products among many others.
Over the next seven years, Neogen’s expansion will create more than 100 new jobs accessible to individuals with less than a four-year college degree, and dozens of positions to be filled by professional and technical roles in the food safety industry. Positions will meet living-wage minimums, be full time, and eligible for industry-competitive benefits.
Currently considered a brownfield property, Neogen is investing more than $4 million into remediation activities to prepare the expansion site for construction. Upon completion, the newly constructed facility will achieve a Leadership in Energy and Environmental Design (LEED) Silver certification.
“Neogen is pleased to expand our Lansing footprint and offer new opportunities for workers within our Mid-Michigan community,” said Jerome Hagedorn, Vice President of North American operations at Neogen. “We are proud to work collaboratively with many organizations across Michigan, including Michigan Community Capital, as we continue investing in our state and create good-paying jobs within the food safety industry.”
“Michigan Community Capital is thrilled to support Neogen’s expansion in the city of Lansing. The influx of more than 100 new full-time positions in the city will support surrounding businesses, shops, and restaurants, generating year-round economic activity in the region,” said Eric Hanna, President and CEO at Michigan Community Capital.
Chase is serving as NMTC equity investor for the financing in the project.
“We’re proud to continue our strong relationship with MCC and support the expansion of the Neogen Lansing food safety facility through our New Markets Tax Credit equity investment,” said James Simmons, Executive Director, Chase Community Development Banking. “Through our NMTC platform, we remain committed to using this impactful financing tool to support continued investment and economic development across Michigan and the US.”
The Michigan Economic Development Corporation (MEDC) is also supporting this project. The Michigan Strategic Fund (MSF) is supporting the City of Lansing with state tax capture in a brownfield tax increment financing plan valued at approximately $1.5 million to support site readiness and environmental clean-up. The MSF has also approved a Michigan Brownfield Business Development Program (MBDP) grant valued at $324,000 to support the job creation made by Neogen Corporation.
“Congratulations to the team at Neogen on your continued growth and success! We’re pleased to support your expansion in Michigan and appreciate this vote of confidence in the strength of our talented workforce and attractive business climate,” said Quentin L. Messer, Jr., CEO of MEDC and President and Chair of the MSF Board. “This project will not only bring more than 100 good life sciences, R&D, and professional services jobs to Mid-Michigan, but it will also transform an underutilized property and bring new economic activity to downtown Lansing. We’re proud to join our partners at MCC, the Lansing EDC and the City of Lansing to support this project, and look forward to working with Neogen to grow, add even more jobs and provide greater employment for our friends and neighbors in mid-Michigan.”
The Neogen expansion is being further supported by the Lansing Brownfield Redevelopment Authority (LBRA) and the City of Lansing with funding of $30,000 for environmental assessment and fuel tank removal, and by committing to using local tax increment financing to reimburse Neogen for up to $3,500,000 in eligible brownfield clean-up and site preparation activities.
“The Lansing EDC and City of Lansing have partnered with Neogen on multiple expansion projects over the last 20 years. This most recent expansion project is further proof that using the power of public-private partnerships to help local businesses stay and grow is mutually beneficial,” said Karl Dorshimer, President and CEO of the Lansing Economic Development Corporation.
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 $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.
###
Marketing & Communications Michigan Community Capital media@miccap.org
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.
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.
###
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.
