Michigan Magnet Fund Closes 19 Projects
The Michigan Magnet Fund has closed 19 New Market Tax Credit Project by allocating $138.75 million of its Qualified Equity Investment.

The projects are in 6 cities and include:
1. Clear Water - Grand Rapids a $6.7 Million investment in this historic rehab of the former Water Works building into an office complex. This is Fifth third Bank investment into the MMF and includes brownfield tax credits in addition to the national and state historic tax credits.
2. 920 Cherry St. - Grand Rapids is a $5.8 million investment is the historic rehab of the former Orphanage building into the headquarters of the nonprofit Inner City Christian Foundation, a leader in affordable housing development in Grand Rapids. The development is part of a larger privately developed residential project, The project also uses historic tax credits, Brownfield and state historic SBT tax credits. An additional TIF has been approved for the residential development.
3. 500 Block - Flint is a $5.4 million investment into the rehabilitation of these former downtown buildings into a mixed use development. This was a complex project using HUD 108 financing from the city, old building (10%) tax credits, brownfield and state historic SBT tax credits, and a BEDI grant.
4. Book Cadillac - Detroit is a $10 million qualified equity investment into this $185 million historic rehabilitation of this grand hotel. The MMF investment made it possible for National City Bank to invest $28.0 million in purchasing the losses from the donation of the facade easement to a Conservancy group.
5. East Forest Arts Project - Detroit is a $3.6 Million into this arts orientated historic rehabilitation development in the city's cultural center. The African-American Art Gallery owner is the qualified low income business receiving the MMF investment. It uses a HUD 108 loan as part of the leveraged investment to National City Bank's NMTC driven equity investment and obtained a brownfield SBT tax credit in addition to the state and federal historic tax credits.
6. Pere Marquette - Bay City is a $5 million investment by the MMF into this historic rehabilitation of the former railroad station into the City Convention Offices. This project in addition to national and state historic tax credits, obtained state brownfield SBT tax credits. MMF obtained a leveraged loan from a local foundation to leverage the new market tax credit equity investment by Fifth Third Bank.
7. Harbor Shores - Benton Harbor is a $8.6 million investment into a land development company that is redeveloping over 250 acres of land in Benton harbor and as part of total 500 acre, $86 million land development. National City Bank provided the equity investment leveraged by a loan from the Whirlpool Corporation. The investment is being used to acquire the land and put in the infrastructure.
8. Bicycle Factory - Grand Rapids is a $4 million investment into a historic rehabilitation and transformation of this former factory into a mixed use facility. Fifth Third Bank is the QEI investor in MMF. However, within one week of the closing the building was completely destroyed by the largest fire ever seen in the City. It is presently being restructured from a historic rehabilitation to a larger new construction. We expect to know the feasibility of the change by June, 2007.
9. Studio One - Detroit is a $5 million investment by MMF with Fifth Third Bank providing the NMTC equity toward this $18million project toward a mixed use development in the City's Cultural Center and will provide 128 market rate apartments on land leased from Wayne State University. This project closed in May, 2007. It also has a state brownfield tax credit.
10. Woodard Station Lofts - Owosso is a $5 million QEI investment into a mixed use development using debt leveraged by a loan from Huntington Bank and new markets tax credit equity from Fifth Third Bank he financing mix incuded federal and state historic tax credits and state brownfield tax credits in addition to the new market tax credits.located in a low income rural community.
11. Michigan Motion Picture Studio - Pontiac is a Qualified Equity Investment of $59 million with four CDEs sharing their allocation. The other CDEs included Fifth Third CDC, US Bank CDC, and Stonehenge. US Bank was the NMTC equity investor. The leveraged loan came from $30 million in Facility bonds issued by Oakland Economic Development Corpora-tion with letters of credit for part from the Michigan Employee Pension Plan and investors in MMPS.
12. Verso Renewable Energy Development This is a $52 million project to produce enrgy based on bio fuels in the Upper Peninsula of Michigan. MMF was joined by LISC, and the Cap Fund to provide a Qualified Equity Investment of $32 million. A Verso entity provided the leveraged debt and JPM Chase the equity capital. The investment will permit the plant to be more competitive in an industry where paper is a commodity. It will help retain the 475 jobs in the area and create about 50 jobs for the small businesses that will be providing the bio fuel.
13. Lofts on Ludington in Escanba is an estimated $5 million mixed use project that will histroically rehabilitate a vacant downtown building a put it to productive use. MMF used a Qualifieid Equity Investment of $4 million. This was "it takes a village project" MSHDA provided $765,000 in CDBG funds, the City provided a $525,000 UDAG loan, the DDA threw in $20,000, The Bank of Holland provided the equity for the NMTC and federal historic tax credits, and Michigan Historic Preservation Network provided the state tax credit investment.

Oakman Place is Built With 1602 & HOME Funding
Lutheran Child & Family Services of Michigan opened its 24 unit Oakman Place Project. The project was submitted as a part of the Supportive Housing set aside for the 9% tax credit round. It is designed to house ten (10) homeless young adults (primarily youth aging out of the foster care system at age 18). It had HOME funding support from Detroit, Wayne County and MSHDA

The Team consists of Fusco, Shaffer & Pappas, Inc. Damone Group, Clark Hill, and AABDS. Focus Hope has been a very active facilitator. A more detailed description of the project including picture can be found in the attached material

AABDS Completes Brightmoor Land Use Plan
AAB Development Strategies, LLC and its team of McKenna Associates, Inc. Spalding Decker and Allen Associates has completed a Brightmoor Land Use Plan for the 4.0 square mile neighborhood in Detroit. The Team was hired by LISC as part of its Next Detroit Neighborhood Initiative. This slide presentation summarizing the Plan was made to Mayor Bing.

The Brightmoor neighborhood was originally developed by a developer solicited by Henry Ford to build low cost housing for his works being recruited from appalachia. He build thousands of of 800 square foot homes on slab with an outhouse in the rear. The neighborhood was annexed into Detroit in 1925. since the 50s the neighborhood has lost a significant part of its housing and population. The blighted parts of the area overlay the old plats

Brightmoor Reports and Data Listed on Web Page

National Housing In-Institute Urges Shrinking City Strategy
Allan Mallach of NHI, invited as part of a Urban Land Institute Team looking to design sustainable communities, made key arguments for a sustainable urban design. Detroit must focus on its existing neighborhoods and plan on the basis that it has over 50 square miles more than it needs to house its population. The City must recognize that it is not growing and cannot grow under the projected economic forecasts. The City of Detroit must improve the quality of life of its existing neighborhoods.

Mallach's presentation is attached

AABDS Forms
Strategic Alliance with
Chronasoft.
Check out Chronasoft.com if you need a creative multimedia program

Community & Business Organizing
Part of getting anything done requires us to establish new organizations and get them financed. Bogdan has been involved in setting up well over a dozen such organizations and getting them financed. Look into Getting Organized.

Web Page to Help
Professionals
This Web page has been designed to help Community and Economic Development professionals do their job more effectively. Use the tools below.
- Michigan Community &
Economic Development Laws
- Search Engines
- Professional Organization
Contacts
Tell us what you think!. Have we missed anyone?

Show and Tell
Under Projects we have a description of the various projects the Bogdan has worked on. They are there to convey experience but also may be a source of good ideas that we can help you implement or you can use on your own. We encourage maximum feasible plagiarization.

MEDC Offers $100M for Developments in place of Brownfields, Historic Tax Credits The Michigan Economic Develop-ment Corporation (MEDC) has $100M it wants to give out in fiscal year 2012 to Michigan businesses that are creating jobs and to development projects that aim to revitalize urban areas through reuse of vacant or historic buildings or creation of sustainable and mixed-use dev-elopments.

Under the purview of the Michigan Strategic Fund board, two new programs will replace Michigan Economic Growth Authority (MEGA), brownfield and historic tax credit programs, all part of the former Michigan Business Tax that will be eliminated.

The Michigan Business Devel-opment Program and the Michigan Community Revital-ization Program will each provide up to $10M per approved project via grants, loans and other economic assistance.

MEDC’s website on the program:  http://www.michiganadvantage.org /Michigan-Community-Revitalization-Program-Projects/

Brightmoor Plan Notes

The highest priority for the City of Detroit must be the preservation, stabilization, and growth of its stable intact neighborhoods. They form the base for the future development and growth of the City. They are the magnet for future residential development

Some ideas are as follows:

1. Determine and target resources toward them.

2. Provide a property tax break to the targeted neighborhoods to help increase value and stability

3. HOME & CDBG funds should be expanded for use by seniors and other low income folks for home repair and rehabilitation - recommend a $25,000 loan repayable upon sale of the property in order to create a revolving loan fund. Initiate Golden Girls Programs. Add MSHDA PIP.

4. Any house needing to be demolished should be demolished within 120 days or as soon as the political process permits. Use County Nuisance Abatement Program to Obtain Land Control.

5. Capital outlay budgeting should give these neighborhoods highest priority including street repair, lighting, and schools.

6. Abandoned or foreclosed homes should not be boarded - other alternatives should be used

7. Use of LIHTC development should be targeted to strengthen targeted neighborhoods and to provide specialized needs.

8. Create a PILOT program to voluntarily trade owner-occupied property in abandoned neighborhoods for foreclosed homes in stable neighborhoods using NSP funds.

9. Encourage the reorganization of the CDC network to assure that they are centered on the stable neighborhoods. Each neighborhood must participate in planning and implementing their future.

10. Sell and/or give publicly owned vacant lots to a) neighbors or b) neighborhood organization.

11. Encourage the establishment of neighborhood based investment groups to purchase, repair and rent to own neighborhood homes to stabilize the neighborhood. Provide matching funds.

12. Consider the formation for Neighborhood Improvement Authorities under state enabling legislation to manage each neighborhood's development activities.

If done properly, I believe we should be able to negotiate lower home and auto insurance rates for the target neighborhoods.

Where's the Money
A Powerpoint slide on Financing Business and Real Estate Development Projectshas been installed for persons desiring to build a business.

It is important to note that starting a business without a track record is not done with borrowed capital - it is done with sweat and the help of family and friends.