Lansing-based Great Lakes Capital Fund (GLCF) will likely allocate at least $5 million to one or more Capital region projects before the end of the year, says Aaron Seybert, fund specialist.
The money comes from $28 million dispersed from the U. S. Department of Treasury’s New Market Tax Credit (NMTC) program and must be used for job creation and retention.
The GLCF, or "Cap Fund" as it is known locally, covers four states — Michigan, Indiana, Illinois and Wisconsin — and will fund at least one project in each state.
“We want to be careful to be supporting sustainable jobs—not just 500 construction jobs and then they’re done,” Seybert says. Projects will focus on the sustainable energy industry and other emerging New Economy jobs, he says.
The competition is stiff, with $1.5 billion in projects vying for the $28 million available.
Potential candidates for the Capital region include developer Gene Townsend’s mixed-use project on Ottawa Street, west of the capitol building; rehabilitation of some commercial buildings around Lansing’s Stadium District; or the creation of a film production center with sound stage.
One proposal for an Ingham County location is for a start-up car company that would make high efficiency vehicles with internal combustion engines, although the investors are looking at a number of sites, Seybert says.
The NMTC fund accrues from tax incentives to induce private investors to invest in businesses and real estate development projects located in low-income and rural communities.
A portion of the $28 million will go to rural areas, such as parts of Williamston or St. Johns, he says.
Source: Aaron Seybert, Great Lakes Capital Fund
Gretchen Cochran, Innovation & Jobs editor, may be reached here.
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