DETROIT – Invest Detroit has announced closing four transactions totaling $32 million using its New Markets Tax Credit allocation from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. The allocation will support four transformative projects in the city of Detroit.
Invest Detroit is a mission-driven lender, investor, and partner that supports business and real estate projects that ignite inclusive economic growth in Detroit and the region. These projects will help finance neighborhood revitalization projects across the city, with a focus on initiatives impacting underserved communities and those delivering lasting benefit to neighborhoods.
“This substantial deployment of New Markets Tax Credits supports four impactful projects that will create high-quality jobs, drive economic activity and uplift Detroit neighborhoods,” said Dave Blaszkiewicz, president and CEO of Invest Detroit. “These investments reflect our continued commitment to inclusive economic growth and community revitalization. The NMTC program has proven to be a powerful tool that creates lasting impact.”
The NMTC allocation is being directed toward projects that reflect Invest Detroit’s commitment to equitable development, including:
- METD/Laepple – $7.5M in NMTC allocation to support METD Detroit, Inc. and Laepple Automotive’s efforts to reactivate the 638,000 former Stellantis tool and die facility in Detroit – a historic automotive stamping plant that was idled in 2019. Laepple will be leasing 270,00 square feet of the facility to manufacture components for clients. The project is expected to create 173 jobs and establish the facility as Laepple’s U.S. headquarters. The building will house other manufacturers as well.
- Investor: Dudley Ventures/Valley Bank
Marygrove Conservancy– $7M in additional NMTC allocation to support continued growth of the Marygrove Conservancy and its community-centered campus. A major initiative of the conservancy is managing a landmark partnership to create a cradle-to-career (P-20) educational campus on the site. The P-20 campus is designed to be an educational, economic and civic anchor in the revitalization efforts of the Livernois-McNichols community. The campus will integrate academic experiences from early childhood to college and career with community-driven services, so that students are empowered and equipped to define their own future and that of their communities.
The current phase and focus for the NMTC investment are the redevelopment of the 135,000 SF Madame Cadillac Hall into a mixed-use building to include a 38,000 SF Powerhouse Center for Black Excellence and a new University of Michigan School of Education degree program. The Powerhouse is expected to serve up to 100 small businesses ranging in size from 2 to 10 employees. The Powerhouse is explicitly intended to support Black-owned small businesses, and all tenant businesses are expected to be owned by Detroit residents. Invest Detroit CDE has committed a total of $22M in NTMC allocation to support the total project cost of $62M.
- Investor: PNC Bank
OSI Art Apartments at West End – $13.5M NMTC allocation for a $15M mixed-use affordable housing development in Detroit’s Woodbridge neighborhood. The new residential construction rising on the site of a former industrial building will feature 30 rental apartments (studios, one-bedroom and two-bedroom units) and about 5,000 square feet of ground-floor retail space. The project’s developers are Roderick Hardamon of URGE Development Group and George N’Namdi, founder of the N’Namdi Center for Contemporary Art in Midtown.
Partners include IFF (Lender), Michigan Strategic Fund (MSF), City of Detroit (via ARPA funds), DEGC, DBRA, Detroit Housing for the Future Fund (DHFF) and Northern Trust (Investor).
Anchor Detroit (Life Remodeled) – $6M NMTC allocation to support the redevelopment of a former school campus into a community innovation hub. Located at 9740 McKinney Street, the 96,650-square-foot facility will soon become Life Remodeled’s second Opportunity Hub, Anchor Detroit. The dynamic community space will serve youth and adults on Detroit’s east side by offering after-school youth programs, workforce development programs, and health and wellness resources to the community. In partnership with the Denby area community, Life Remodeled is committed to creating an environment that will meaningfully improve the lives of over 20,000 Detroit residents each year through this equitable and sustainable development project. Plans for the new hub include a significant presence for arts and culture programs, including a fully modernized 700-seat Performing Arts Theater. Additionally, Anchor Detroit will play a key role in advancing the Whittier Corridor as a thriving destination for creativity, technology and innovation with a new 26,000 square foot tech center.
- Investor & NMTC allocatee: Dudley Ventures/Valley Bank, Lender: IFF
Recipients of the NMTC Awards reacted to the news, “The expansion into the North American market represents a major milestone for Laepple Automotive. This strategic move underscores the company’s long-term vision of global growth and innovation in the automotive sector,” said Oliver Wackenhut, CEO of the Laepple Automotive group.
A key factor in this project’s successful advancement has been the support provided by the New Markets Tax Credit (NMTC) program. This initiative played a crucial role in enabling the company to establish a strong foundation for its operations in the United States.”
“The Marygrove Conservancy deeply appreciates the commitment of Invest Detroit,” said Tom Lewand, executive director of the Marygrove Conservancy. “The investment of New Market Tax Credits and the expertise of their neighborhood team are vital to the transformation of the Marygrove campus into a cradle-to-career anchor for Northwest Detroit. This project, which includes the creation of a world-class conference and events center, a thriving entrepreneurial hub and a new degree program from the University of Michigan, is an excellent example of the power of NMTCs and their ability to drive investment in areas that need it most.”
“New Market Tax Credits are a critical tool to activating commercial corridors and neighborhoods in Detroit,” said Rod Hardamon, CEO of URGE Development Group and co-developer of OSI Arts Apartments. “The ability to use it as a creative financing tool was critical to providing the necessary capital to complete the OSI Art Apartments. NMTC allocations allow us to breathe new life into underinvested communities.”
“Life Remodeled is committed to neighborhood revitalization that lasts for Detroit communities. The New Market Tax Credits we acquired in partnership with Invest Detroit were a game changer in funding the $14.3 million renovation of a formerly vacant school building on Detroit’s east side into our next Opportunity Hub, Anchor Detroit. By leveraging NMTCs, we’re able to stretch our capital campaign donation dollars even further and make a meaningful impact for Detroit children and families,” said Diallo Smith, President & CEO of Life Remodeled.
“New Markets Tax Credits make it possible to bring meaningful development to Detroit neighborhoods that otherwise would not be possible to create jobs, support local businesses, and bring resources closer to the people who need them most,” said Marcia Ventura, senior vice president of Lending at Invest Detroit. “Since 2009, NMTC allocations have helped create jobs, supported the redevelopment of historic buildings, manufacturing facilities and commercial corridors. These projects would have been out of reach without this critical tool.”
To date, Invest Detroit has received $208M in NMTC allocation. Beginning in 2009, these funds have supported 23 different projects across the city which has created over 3,600 jobs and contributed to the development of catalytic infrastructure such as the QLine, support for Detroit entrepreneurs and emerging minority developers, reactivation of numerous vacant historical buildings, and support for manufacturing facilities that create accessible jobs for Detroiters.
The NMTC Program helps economically distressed communities attract private investment capital. This federal program helps to fill project financing gaps by enabling investors to make larger investments than would otherwise be possible. For every $1 invested by the federal government, the NMTC Program generates over $8 of private investment. To learn more about the New Markets Tax Credit Program visit www.cdfifund.gov/nmtc.
About Invest Detroit
Invest Detroit is a nonprofit lender, investor, and partner that supports business and real estate projects that will ignite economic growth in Detroit and support inclusive growth of entrepreneurial ventures across the state. Our goal is to help create a thriving city that works for all Detroiters with an improved quality of life–inclusive housing, resourced and walkable neighborhoods, and equal opportunities for jobs and business growth; and scale promising early-stage ventures into thriving companies that help support the state’s economy, provide jobs to local talent, and bolster Michigan’s growing startup community.
Learn more at www.InvestDetroit.com.
