Most real estate developments are driven by a simple profit motive, which often fails to ask important questions:
- What would really benefit the community?
- How do you plan a building that will still be useful in the future?
- Can we build something that will contribute to real progress in this country?
In trying to answer these questions, we enlisted the partners that gain when development is done right. The result is an unconventional financing structure that took some patience to assemble, but ultimately let us build a project that developers simply seeking a profit would have overlooked.
Lorain National Bank is a community bank that has stayed true to its roots in Lorain County. They’ve been a steadfast partner and are providing both the construction financing, commercial permanent financing, and residential mortgages for the project. Their investment is supplemented by the New Markets Tax Credit, a Treasury Department program that incentivizes banks to invest in job creation in low-income areas. The program works by allocating tax credits to Community Development Entities, such as our partners McCormack Baron Salazar and the Enterprise Foundation. McCormack Baron and Enterprise chose projects from across the country that will catalyze change in their community and allocate their tax credits to the projects, reporting back to the Treasury with documentation of the community benefits. We also partnered with USBank, which buys the tax credits and uses them to write down its federal tax liability, or packages the credits to sell to investors.