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Michigan Magnet Fund

Michigan Magnet Fund

Michigan Magnet Fund

An MEDC controlled New Markets Tax Credit Community Development Entity

phone: 517 626-1861
email: ehanna@growmicapital.com

 

LATEST ANNOUNCEMENTS

MMF Announces New Product

Click Here to see more details about our new Multi-Project Line of Credit

To apply,  please contact Eric Hanna at 517-626-1861 or send an email to ehanna@growmicapital.com

MMF Provides Flexible Terms

The terms of the MMF loans are more flexible than found in the market. Read more...
If the site is eligible under 2000 Census you are OK but if there is any chance you will not close until June 30, 2013 or later you will need to use this new criteria. Read more...
The Michigan Magnet Fund today (1/20/2012) announced that it has lent Lafayette Place Development $9,262,500 toward the financing of this $19.8 million mixed-use, mixed income project. Read more...
The Michigan Magnet Fund received a call from the Chief Engineer thanking MMF for the work it did in pulling together the financing for this project. Read more...
This four story landmark known as the historic Richter Brewery Building, located at 1615 Ludington Street, Escanaba, Michigan, is listed on the national Register of Historic Places. Read more...
The Michigan Magnet Fund (MMF) announced that it has closed on loans totaling $6.34 million to the Oakes St SW, Grand Rapids, MI 49503. Read more...
The Michigan Magnet Fund, a CDFI Fund certified Community Development Entity announced that it has invested $5,606,250 in the Hamtramck Recycling (HR) located at 3300 Denton in Hamtramck, MI. Read more...
The Michigan Magnet Fund, a CDFI Fund certified Community Development Entity (CDE) invested $6.825 million to finance the $42 million construction of the Seidman Center. Read more...
City and community leaders, including the Michigan Magnet Fund celebrated the dedication of new Heart of the City Health Center on Wednesday (9/28/11) morning. Read more...
The MEDC and MMF used $25 million Qualified Equity Investment by MMF ($15M) and the Brownnfield Redevelopment CDE ($10M) to induce Whirlpool Corporation, a Fortune 500 firm to build the first phase of a 250,000 square foot office complex in downtown Benton Harbor. Read more...
Donna Gambrell, Director of the CDFI Fund, on February 24th, announced that the Michigan Magnet Fund will be awarded a $25 million of 2010 New Market Tax Credit allocation for investment in eligible businesses in low income communities throughout the state of Michigan. Read more...
The Michigan Magnet Fund invested $12M as part of a $59.2M Consortium of CDEs in the Michigan Motion Picture Studio in Pontiac. The project is projected to create an estimated 3,400 new jobs as part of building the new industry. Read more...
The Michigan Magnet Fund invested $12M as part of a $59.2M Consortium of CDEs in the Michigan Motion Picture Studio in Pontiac. The project is projected to create an estimated 3,400 new jobs as part of building the new industry. Read more...
The Michigan Magnet Fund has closed 13 New Market Tax Credit Projects by allocating $91.0 million of its Qualified Equity Investment. Read more...
Fourteen CDEs that selected Michigan for Investment were awarded new market tax credit allocations totalling $495 million. Read more...

MICHIGAN MAGNET FUND FINANCES SHIAWASEE PERFORMING ARTS CENTER

Shiawassee

The Michigan Magnet Fund (MMF) announced the closing on loans totaling $6,093,750 to the Shiawassee Performing Arts Center (SPAC), the new restored home of the Owosso Community Players (OCP), the project sponsor. The SPAC will use the proceeds of these loans along with other funds to restore the historic Lebowsky Theatre in Downtown Owosso, Michigan. The Lebowsky Theatre was built in 1926 by Joseph H. Lebowsky and designed by leading Detroit architect, George J. Bachmann. The Theatre featured performers from the famous B.F. Keith Vaudeville Circuit. The Lebowsky Theatre is Owosso’s last remaining historic theatre. The building has been vacant since February 2007 when it was destroyed by fire. Since the fire, Owosso Community Players has performed out of a small studio theatre donated by Chemical Bank. When completed, the Shiawassee Performing Arts Center will allow Owosso Community Players to return to big stage productions that are projected to draw as many as 17,000 people to downtown Owosso. The renovations are expected to be complete in March 2014 with the first performances taking place shortly thereafter. Corporation (MEDC), SDA, Chemical Bank,and PNC Bank toimplement the MMF financing of the theatre.

Serving Low-Income Communities
The project meets MMF’s goal of only investing in Low-Income Communities. It is located in a non-metropolitan (rural) county in central Michigan and is in census tract 26155030600, which according to the 2006-2010 American Community Survey has a poverty rate of 32.3%, median family income 40.8% of the State median income, and an unemployment rate of 17.4%. The minimum requirements under the New Markets Tax Credit program are 80% of State median family income or 20% poverty levels.

"It Takes a Village"
The MMF considers the SPAC an “it takes a village” project. It will not only restore a historic theatre and community theatre group to greatness; it will help re-establish the economic vitality of the community’s downtown area. Twenty-three downtown businesses have indicated they would expand and hire new people, if OCP’s audience returns to its pre-fire level. Congressman Dave Camp helped support the project. An important component of this project’s fundraising success is attributed to the nearly $1.6 million donated by Owosso area residents toward the restoration. In addition, Chemical Bank, The City of Owosso, and MMF have provided bridge loans to the project totaling over $3,000,000. These bridge loans allow SPAC to utilize Michigan Historic and Brownfield Credits and Community Revitalization Program Funds in the renovation of the project. The U.S. Department of Agriculture (USDA) also provided $940,000 in funding for the project. It took strong community support along with the City, State, Michigan Economic Development.

MMF Provides Flexible Terms
The terms of the MMF loans are more flexible than found in the market. The MMF loans are subordinated to the USDA loan, have a 1% interest rate, exceed the properties’ appraised value, have a 32-year term, and are “interest only” for seven years. All these terms are significantly more flexible than those SPAC may have received from conventional lenders. These flexible terms were made possible by a $1.7 million equity investment by PNC New Markets Investment Partners, an affiliate of PNC Bank. It was combined with other funds to make a $6.25 million Qualified Equity Investment in an MMF subsidiary. In return for its investment, PNC will receive approximately $2.4 million in New Markets Tax Credits over a seven-year period.

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