Michigan Magnet Fund Closes 10 Projects
The Michigan Magnet Fund has closed 10 New Market Tax Credit Project by allocating $60.0 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 buidling 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 rhehabilitation 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 purcahsing 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 developement company that is redevloping 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 Fifth Third Bank in the MMF toward this $18 million 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 investment using debt leveraged by a loan from Huntington Bank and new market tax credit equity from Fifth Third Bank into the MMF. This project is located in a low income rural community and will receive state and national historic tax credits, state brownfield tax credits in addition to the new market tax credits.

For more details and pictures go to the following mmf1.org link. In keeping with MMF's underwriting criteria none of the projects would have been financed but for the MMF investment.

AABDS Team Starts Brightmoor Land Use Planning
AAB Development Strategies, LLC and its team of McKenna Associates, Inc. Spalding Decker and Allen Associates won a contract to prepare a Land Use Plan for the 4.0 square mile neighborhood in Detroit. The Team was hired by LISC as part of it Next Neighborhood Initiative.

The Brightmoor neighborhood was originally developed by a developer solicited by Henry ford to build low cost hoousing 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.

Brightmoor Reports and Data Listed on Web Page

National Land Insti-tute Urges Shrinking City Strategy

Allan Mallach of NLI, 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 llife of its existing neighborhoods.

Mallach's presentation is attached

Oakman Place Wins LIHTC Commitment
Lutheran Child & Family Services of Michigan won a tentative commitment from MSHDA for its 24 unit Oakman Place Project. The project was submitted as aprt 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.

Oakman Place has been awarded an annual credit of $461,000 toward its $5 million project. The Team consists of Fusco, Shaffer & Pappas, Inc. Damone Group, Premier Property Management, Clark Hill, and AABDS. Focus Hope has been a very active facilitator.

Court Orders NEZ for
Scattered Sites
The City of Hamtramck and the plaintiffs have agreed and stipulated to a proposed Neighborhood Enterprise Zone for the HOME funded scattered site houses. 14 zones have been established to cover the 33 units. A rough outline is shown in the attached map. In addition, an NEZ annuity has been established for three units built by the Hamtramck CDC. $18,000 will be placed in an interest bearing account to reduce property taxes by approximately $1,715/year until the fund has been used up.

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.

AABDS Team Outlines Proposed Land Use Strategy for Brightmoor Neighborhood.
The attached Powerpoint presentation outlines an understanding of the changing economics and changing land use on the City of Detroit. It outlines a strategy focused on the increasing the quality of life in the city, expanding its tax base, and stabilizing it neighborhoods. It proposes dramtic improvementss for the quality of life for residents in the distressed parts of the community while taking initiatives to improve the quality neighborhoods.

The Strategy responds to the Vision for the area which states that the Brightmoor Area will consist of branded, safe, tree-lined, pedestrian and automotive-friendly, compact interconnected urban villages (neighborhoods) having quality homes with high quality of family living including good schools, parks, recreation and with increasing property values and supportive commercial businesses.
           
The Brightmoor residents recognize that the area has excess land that must be put to productive nonresidential uses.  It recognizes that the city must remove all blighted and abandoned buildings and place the vacant and distressed areas into productive uses that can create jobs, agricultural resources and a beautiful interconnecting green border for the existing intact neighborhoods. 

Develop A Strategy For The Reuse Of Vacant Land Areas Including

Create Employment Opportunities With Supportive Training Centers;

Remove All Blighted Structures;

Establish An Opportunity To Create Renewable Energy Resources;

Establish Community Gardens And Urban Farming;

Eliminate All Dumping And Graffiti.

AABDS Offers Data Base Design Services
Edwina Bogdan, Al's partner in life and business, is offering her services as an ACCESS Data Base Developer. Edwina has a lot of experience in developing databases that keep track of properties managed by a CDC. She has also done inventory systems, as well as market sales and projections, and can tie them together using access tables and Excel spread sheets as the data source. She creates easy to use input tables and reports, as per your specifications. See resume.

Jim & Drew's Deli A Smash
Jarrett Eggers, who received immediate notoriety when he proposed to the elusive and gorgeous Alyssa ,Bogdan, opened a new Deli in Boulder, Colorado. The reviews were phenomenal. See for yourself. Jimmy and Drew's is the place to go in the southwest. Jarrett and his partner are a huge success.