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Witherbee’s Market & Deli A Nonprofit and Land Bank Partnership
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This is bullet size Community Progress Launched January 2010, Funded by C.S. Mott Foundation and Ford Foundation. Takes to scale the efforts of the nation’s leading organizations and individuals on issues of revitalization and reuse of vacant, abandoned, and underutilized properties. The mission: to create vibrant communities through the reuse of vacant property in America’s cities and towns. To transform the systems that affect how the community development, government, and private development fields repurpose these properties and communities. The Center focuses on: Technical Assistance & Capacity Building, Policy & Research, Coalition Building, and Communications. Our offices are located in Flint, MI, Washington DC and New Orleans, LA.
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Flint, MI- Downtown Redevelopment Area
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Neighborhood Redevelopment Berridge Place - 21 residential units - $6.2 million Durant Hotel – 93 residential units – $30 million Downtown Apartments – 24 units – $11.4 million University of Michigan – Flint 800 units - $23 million University Avenue Streetscape Project - $3.8 million Over $74 million is currently being invested within a two block radius of the site. Over 1,000 new residents are living in downtown Flint.
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Catalyst/Blight Elimination/Title Clearance Land Bank Center Project: Department store vacant for 23 years; Title with 22 people recorded interest. Role: Developer Tool: Land Bank Bond Financing and Title Clearance Cost:$4.2 Million - Bond Financing, MSHDA Affordable Housing Funds, Foundation. Risk: High risk. Downtown with an over 50% vacancy rate. Debt repayment on bond. Benefit: Redevelopment of first floor commercial space, 7 residential housing units, and 2 Offices.
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This is the type so far
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Crime & Blight Reduction/Historic/Catalyst Berridge Place Project: Occupied “flop house” with 99 rooms; very blighted interior; Magnet for crime; Prevented redevelopment of the area. Role: Managing partner in nonprofit partnership. Tool: Brownfield TIF. Cost: TDC - $6.2 million. 18 funding sources. Brownfield; Historic and MBT Credit; Affordable housing; Foundation. Risk: High risk – Neighborhood targeted for redevelopment; Unknown market demand. Community perception. Total remaining land bank debt - $1,385,000. Benefit: Historic rehabilitation resulting in 21 residential and 2 commercial units. Cross-collateralized Brownfield TIF.
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Berridge Hotel
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Neighborhood Redevelopment Carriage Town Affordable Housing Project: Single Family Homeownership – Flint NIPP, INC. and Land Bank Partnership Role: Property Assembly – Close Geographic Proximity Tool: Environmental Assessment and Brownfield. Cost: No direct cost to land bank. Risk: Low risk. Only if the development was substandard and harmed the reputation of the land bank. Benefit: Land bank claims tax revenue until entire brownfield bond obligation is repaid (c ross- collateralized Brownfield TIF).
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Carriage Town Homeownership
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Historic Preservation - Durant Hotel Project Vacant historic hotel Unable to be redeveloped due to high development costs Anchors downtown Land Bank is the co-developer / limited partner Land Bank brought $8 million in financing to the project Results: Historic rehabilitation resulting in 100 residential and 7 commercial units
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Historic Preservation Durant Hotel Project Project: Vacant historic hotel; Anchors downtown; Unable to be redeveloped due to high development costs. Role: Land Bank is the co-developer / limited partner. Tool: Acquisition; Brownfield. Land Bank brought $8.5 million in financing to the project; Local Politics; Eligible for grants. Cost: TDC: $30 million. Equity investments; MBT and Historic Tax Credits; Foundation; MSHDA Affordable Housing. Risk: Low risk. Higher if project is not assessed at the amount to repay investment. Risk mitigated by conservative estimation on TIF revenue. Benefit: Historic rehabilitation resulting in 93 residential and 7 commercial units. Cross-collateralized Brownfield TIF.
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Durant Hotel
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Issues for Sustainability Lack of commercial amenities to serve the new residents of downtown Health and welfare of pre-existing residents Marketability of downtown as a place to live and work High risk investments Interconnected brownfield sites Vacancy and site contamination
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Demographic Analysis 20,260 households within a 2 mile radius Spend annually $116,896,412 on food and grocery 60% market leakage outside of the City of Flint Monthly retail opportunity of $5,844,821 4.5% market share of leakage rate would produce a break-even budget for store Market analysis did not take into account the 6,000 employees that work in the direct vicinity of the store Budget is based on a conservative profit margin of 27% where traditional grocers average 34% - 36% There is only one other full-service grocery within the city limits. Limited competition.
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Site Selection Vacant 10,000 square foot building with parking lot. Close proximity to neighborhood gateways and redevelopment activity. Historic and Brownfield Eligible Blighted property
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Mission of Witherbee’s Market and Deli Witherbee’s Market and Deli strives to provide Flint’s residents with quality products, superior customer service and healthy green groceries Create local employment Local ownership and operations Add to the diverse commercial offerings in the downtown commercial district Historic Preservation
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Development Team Nonprofit Developer – Flint NIPP, INC. Project Management and Finance – Center for Community Progress LISC – Market Analysis and Lending Plante Moran – Financial Projections and Tax Credits Gazall and Lewis – Architect Siwek Construction – General Contractor EPA – Environmental Assessment Grant
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Financials Total Development Costs$1,800,000 Grants and Tax Credits $970,000 Building Appraisal$1,000,000 Debt on Building/Equipment$830,000 Debt to Value83% Funding: EPA, LISC, Mott Foundation, Community Foundation, Michigan Business Tax Credit (Brownfield), and Historic Tax Credits
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Results The construction of a 10,000 sq.ft. full-service grocery and deli – employs 15 people Local ownership and management In 2010 won the Governor’s Award for Historic Preservation Achieved a 26% profit margin in the first year of operation Acting as a catalyst for further redevelopment in the area Partnering with local urban agricultural activities and food-based micro-enterprise
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Witherbee’s Market and Deli
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Michael Freeman Program Director of Capacity Building mfreeman@communityprogress.net Tel. #(810)233-7315 x 21
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