Develop Michigan

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Volume 21 | Issue 2 | 2014

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  • A publicAtion of GreAt lAkes cApitAl fund Volume 21 | issue 2 | 2014

    Anin-deptHlook At

    micHiGAns neWest

    economic deVelopment

    proGrAm

  • THE RIGHT DECISION FOR YOUR COMMUNITYAffordable Housing Commercial LIHTC Luxury Market Rate Public Housing Voucher Administration

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  • depArtments

    feAtures

    A NEW PARADIGM FORECONOMIC DEVELOPMENT ........................................6

    WHAT DOES THE FUTURE HOLDFOR DEVELOP MICHIGAN? ..........................................8

    WHAT IS A DEVELOPMENTFINANCE ORGANIZATION? ......................................10

    WHY THE DEVELOP MICHIGAN TEAMIS BULLISH ON MICHIGAN ........................................13

    WHY A DEVELOPMENT FINANCE ORGANIZATIONIN MICHIGAN AND WHY NOW? ..............................16

    FILLING THE CREDIT VOID ..........................................18

    CAPITAL PROGRAMS ARE AVAILABLEFOR YOUR PROJECT ..................................................20

    DMI IN ACTION: THE CAPITOL PARK PROJECT ............21

    COMMUNITY REVITALIZATION PROGRAM ..................23

    A WORD FROM THE DMI BOARD ...............................24

    THE MANAGERS OF DEVELOP MICHIGAN .................25

    AN INTERVIEW WITH DEVELOPMICHIGANS PRESIDENT: RICK LABER .........................26

    CEOs MESSAGE .........................................................5

    Serving Our Mission

    EVENTS & HAPPENINGS ...........................................28

    ADVERTISER INDEx ....................................................34

    28

    21

    18

  • Building a Brighter Future Today

    Ginosko Development Company (GDC) is a real estate development company specializing in quality affordable housing creation and preservation. GDC, through its subsidiaries and joint ventures, engages in the acquisition, development, redevelopment, ownership, and operational oversight of multifamily properties primarily in the United States. Its activities include the acquisition and development of residential properties and undeveloped land reserves for development or sale.

    Ginosko is the Greek meaning for, to understand completely or to know. We at Ginosko Development Company, believe that a thorough understanding and comprehensive knowledge is the unbreakable foundation for any successful real estate venture.

    GDCs communities are known for their careful planning, attention to detail and respect for the environment. GDC strives to lead in the evolution of real estate use in order to meet the market needs of a global economy.

    41800 West 11 Mile Road, Suite 209 | Novi MI 48375office 248.513.4900 | fax 248.513.4904

    www.Ginosko.com

    Ginosko Development Company

  • ceos messAGe

    SERVING OUR MISSION

    GOVERNING BOARDWendell Johns, ChairRetired

    Michael J. Taylor, Secretary/TreasurerPNC Bank

    Catherine A. CawthonFifth Third CDC

    Derrick K. Collins Chicago State University

    Christine Hobbs(retired)

    William C. PerkinsWisconsin Partnership for HousingDevelopment, Inc.

    James W. StretzGeorge K. Baum & Company

    Donald F. TuckerDon Tucker Consulting

    Paul J. Weaver

    Retired

    CORPORATE OFFICERSMark S. McDaniel, President & CEOChristopher C. Cox, CFOJames L. Logue III, COOJennifer A. Everhart, Executive Vice PresidentRick Laber, Executive Vice PresidentKevin Crawley, Executive Vice President

    This magazine is published quarterly by the Great Lakes Capital Fund (GLCF) to provide readers with informa-tion on affordable housing and economic and commu-nity development resources. This publication is copy-righted. The reproduction of Avenues to Affordability is prohibited by law. For additional copies, comments, con-cerns or to be added to the mailing list, please contact the Great Lakes Capital Fund office at 517.482.8555 or visit www.capfund.net.

    Editorial and AdvertisingMary McDaniel, CMP Alternative Solutions, LLC 517.333.8217 mcdaniel64@comcast.netGraphic DesignMelissa Travis Ink Ideas Graphic Design, LLC989.272.3101 www.inkideasgraphicdesign.com

    Lansing Headquarters1118 S. Washington AvenueLansing, MI 48910 Phone 517.482.8555Detroit Office1906 25th StreetDetroit, MI 48216 Phone 313.841.3751Illinois Office225 West Washington, Suite 1350 CChicago, IL 60606 Phone 708.781.9603Indianapolis Office320 N. Meridian, Suite 1011Indianapolis, IN 46204 Phone 317.423.8880Wisconsin Office2 E. Mifflin Street, Suite 101Madison, WI 53703 Phone 608.234.5291Delaware Office100 W. 10th Street, Suite 302Wilmington, DE 19801

    BY MARK MCDANIEL, CEO/PRESIDENTGREAT LAKES CAPITAL FUND

    5

    Our 20 year anniversary was a huge yearlong celebration in 2013. We spent some time looking back at all we have accomplished. But as our history has shown we have never been an organization to sit on our laurels and be satisfied with the status quo. In Capital Fund style we embarked on two historic efforts that will position us to serve our mission better and benefit more people in need. First, was the finalization of the joining together of the Delaware Community Investment Corporation and the Great Lakes Capital Fund. We have combined the strengths of these two 20 year old orga-nizations to serve our markets with more community development financial products and services that will create a greater impact on people in need of safe decent afford-able housing and economic development opportunities. The second historic opportunity for the Capital Fund is the culmination of 3 years of work on creating a Development Finance Organization to serve the void in Michi-gan for economic development financing. The Capital Fund has spent countless hours and financial resources with our partner the Development Finance Group to create what is now known as Develop Michigan Inc. Develop Michigan became operational in 2013. The Michigan Economic Development Corporation has been a wonderful champion of our efforts and was instrumental to Develop Michigan becoming a reality. It is quite a story. In 2007, the GLCF Board made a significant decision. Despite our great success in financing more than $2 billion of low-income housing projects comprising more than 500 projects, the Board believed we had the capacity and expertise to do more for the low-income residents of Michigan. While we are proud of having provided our tenants with safe, affordable, high-quality living environments, our states residents needed more: they needed quality paychecks in their hands to improve their standard of liv-ing. Thus, we expanded our mission to include economic development. Our first foray into economic development was New Markets Tax Credits. We re-ceived two NMTC awards totaling $74 million which we have invested in nine com-mercial projects. We have also managed the investments of the Michigan Magnet Fund NMTC allocations since 2006 ($145 million) and the $95 million allocation of a national New York bank, among others. In this Avenues edition, we are excited to describe our most ambitious economic development effort to date: the formation and launch of Develop Michigan. Develop Michigan represents a new paradigm for economic development finance in Michigan. We plan to grow Develop Michigan into a powerful vehicle that enhances access to capital to support economic development projects across the state. We welcome your questions and support as we embark on this new and exciting chapter in GLCFs journey.

  • 6 GreAt lAkes cApitAl fund

    By DeBBie La Franchi, DeveLop Michigan ManageMent group & Strategic DeveLopMent SoLutionS

    Develop Michigan is an ambitious ef-

    fort. It expands on the traditional concept

    of a Development Finance Organization

    (DFO) of which many highly success-

    ful models exist around the country (see

    page 10) to a new level. While Develop

    Michigan incorporates the best practices

    of other models to finance economic de-

    velopment, it adds a unique structural in-

    novation that increases its ability to devel-

    op new programs. DMI is a not-for-profit

    that is neither managed by nor controlled

    by a government organization. Unlike all

    other DFOs in the United States, Develop

    Michigan has been designed to combine

    the speed, flexibility and innovation of

    the private sector, while maintaining a

    public-sector oriented focus on the com-

    munity, economic, social and environ-

    A NEwPARADIGMFOR ECONOMIC DEVElOPMENT

    feAture

  • AVenues to AffordAbilitY 7

    mental impacts. Develop Michigan is a

    new national paradigm designed to have

    the best of both worlds. The Michigan

    Economic Development Corporation

    (MEDC) has been a critical strategic and

    financial partner in the launch of this

    initiative (see page 16), and, as such,

    it is represented on the Board of Direc-

    tors; however, MEDC does not control.

    This balance of representation allows the

    Board and DMIs manager a partnership

    between Great Lakes Capital Fund and

    Development Finance Group (see page

    25) to pursue the organizations mis-

    sion independently and proactively.

    Develop

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