Michigan Magnet
Fund Awards $12M to Michigan Motion
Picture Studio
The Michigan Magnet Fund, as part of a 4 CDE team, closed on a $12 million Qualified Equity Investment to the Michigan Motion Picture Studio in Pontiac. The project is expected to create 3400 jobs over the next few years. It is part of the birth of a new industry in Michigan. The 4 CDEs provided a combined allocation of $59 million.

MMF has won a $60 million investment allocation of new market tax credits for the entire state. AABDS lead a team to prepare the application and acts as the administrator for the organization. The new allocation will be targeted at investments that generate job, jobs, and more jobs.

MMF committed itself to invest at least 75% of its investment in census tracts with higher distress levels, to split the funds on a 70-30 basis between real estate and business financing and to invest 23% of the total in rural communities. MMF is accepting new applications now Got to htt[://www.mmf1.org to apply

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.

Oakman Place to Close in September
Lutheran Child & Family Services of Michigan obtained approval from MSHDA for 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).

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.

AABDS Team Completes Brightmoor Land Use Plan
AAB Development Strategies, LLC and its team of McKenna Associates, Inc. Spalding Decker and Allen Associates has completed a Brightmoot 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 pressentation 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 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. 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 llife of its existing neighborhoods.

Mallach's presentation is attached

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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 &
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Wayne County/ Tech-town Invest in Detroit to Multiply HUD Loan & Grant w NMTC
Wayne County is working with Techtown and Invest in Detroit to obtain additional funding for the expansion of the Techtown Project

Wayne County Approves 2.1 Million HUD 108 Application Submission
The Wayne County Commission on October 15th approved the submission of an application to HUD for a $2.1 million HUD 108 Guaranteed Loan. The funds will be loaned to TechTown in Detroit to help finance spaces in their building for new technology firms and for a new biotech lab. Wayne State University Board of Trustees have agreed to guarantee the loan The loan wil permit Wayne County and TechTown to obtain a $2.0 million BEDI grant already awarded to them. Once HUD approves the application, the full loan agreement will need to be negotiated and sent baack to the Commission for their approval, This is another initiative of WC EDGE in action to create 21st century businesses and jobs.

Notes from Brightmoor Plan

Detroit has lost 427,000 jobs since 1970 60.1% until 2005. It is losing about 11,000 jobs per year

A purchaser of a $150,000 house by a household making $40,000 in Detroit after deducting taxes, home insurance and auto insurance can only afford a $62,000 mortgage, while in Brownstown Township they can afford a $147,000 mortgage.

A majoity of working Detroiters now work outside the city. Most of Detroit is now suburban in function and form. Its residential neighborhoods must compete with suburban neighborhoods.

Since 1776 people have taken 25 minutes to get to work. As jobs continue to move out, residents will follow.

Over 93,000 persons moved from Wayne County to Macomb County since 2000.

To increase population, jobs must come first, residents will follow. Detroit must become competitive.

Detroit is losing 4400 households/year - Brightmoor is losing a minimum of 107 households per year.

Broad Services Considered
Based on his long history in community and economic development. Bogdan has developed a broad set of skills. See Background and Projects.

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.