Opportunity Zones City of Lansing Investment Prospectus Table of Contents

Why Lansing? Regional Assets Lansing by the Numbers Opportunity Zones Lansing’s Opportunity Zones Development Opportunities Resources Why Lansing? ’s Capital City Welcome to Lansing

Lansing, Michigan’s State Capital, is centrally located and highly accessible. Lansing is just one hour away from Detroit, Grand Rapids and 90% of Michigan’s population. Our community offers ‘big city’ amenities and culture with ‘small town’ convenience, charm and affordability. It’s no wonder Business Insider named Lansing a top 20 city to move to post COVID-19. Be part of continuing Lansing’s story of diversity, innovation, resilience and growth. Lansing Advantage

Lansing provides advanced permitting, concierge services for development needs (rezoning, vacating roads, permitting, etc.) and redevelopment incentives. • Educational pipeline produces nearly 18,000 college graduates each year

• #1 in MI for growing population ages 25- 34 in 2017

• Only region in MI with positive overall Demographics employment growth 2012-2017 People|Talent • Highly educated – 43% of population has Associate’s or higher-level degree

• Has 22% less property crime than comparably sized metros across US

• Lansing Community College ranked #2 community college in Michigan

www.purelansing.com/leapintolansing • #18 best place to live in the US post COVID-19

• Lansing is 2018’s #1 Best Affordable Place to Live in America

• Regain 15 days to enjoy life each year by heading to work via a miniscule commute in Lansing and avoiding the daily 1.5 hour Quality of commute of more gridlocked cities

Place • Michigan’s largest public utility, the Lansing Board of Water and Light, will provide all electricity coal-free by 2025

• Home to one of the top 25 film festivals in the world, the Capital City Film Festival Birthplace of the Michigan Organization for Human Rights in 1977 and the state’s first localized LGBT group

www.purelansing.com/leapintolansing • Recession resistant: highest % durable employment of any city in the nation – 44%!

• From 2017 to 2018, Lansing made the 4th greatest leap of any US community with growing jobs, technological development, and wage gains, rising 49 spots to #89 Best Performing Cities 2019

Jobs • Michigan’s insurance HQ hub, and a top hub across Industry the Midwest, growing 23% in just the past 5 years • North America’s Particle Accelerator capital, with the Innovation most powerful machine of its type in the world being built at MSU, a $770 million accelerator-driven nuclear research lab – the Facility for Rare Isotope Beams (FRIB)

• $555 million dairy processing campus under construction, led by Ireland’s fifth largest company, Glanbia

• Home to GM’s two newest and most technologically advanced assembly plants in the US

www.purelansing.com/leapintolansing Regional Assets • 23% Industry Growth 2012-2017 • 10x Insurance Employment Growth vs National Average • 8 Insurance Company Headquarters • $30 billion in annual premiums/revenue

Nestled in the heart of the Great Lakes, Lansing’s strong existing insurance cluster, pipeline of industry- honed talent and InsurTech-focused entrepreneurial culture make it a safe haven and low-cost market for insurance industry leaders looking to invest in a bright future. Michigan’s

www.purelansing.com/insurance Insurance Hub • No. 34 U.S. Public Universities • Top 40 Best Values in Public Colleges • Top 100 Global University • No. 1 Nuclear Physics Graduate Program

Michigan State University has been advancing the common good with uncommon will for more than 160 years. One of the top research universities in the world, MSU pushes the boundaries of discovery and forges enduring partnerships to solve the most pressing global challenges while providing life-changing Michigan opportunities to a diverse and inclusive academic community. State University www.msu.edu/ • No. 2 Vocational Training in the Nation • No. 2 Community College in Michigan

Lansing Community College is one of the largest community colleges in Michigan, serving more than 25,000 students each year. It offers more than 200 associate degree and certificate programs in addition to career and workforce development and personal Lansing enrichment options. LCC is consistently named one of Michigan’s best community colleges, and number 2 in Community the nation for vocational skills training. www.lcc.edu/ College Sparrow Health System

Sparrow Health System is the region's largest health system, with serving as its flagship location and the regional center for cancer, trauma, pediatrics, orthopedics, neonatal intensive care and neurological care. At Sparrow, patients have access to the only Level 1 Trauma Center in the area. The Granger Pediatric Emergency Department is the region’s first full-service, 24/7 emergency room designed and equipped specifically for children. Sparrow has more than 900 physicians on medical staff, nearly 4,000 births a year and 676 licensed beds. www.sparrow.org/ McLaren Greater Lansing Healthcare

McLaren boasts a tertiary teaching facility with 310 acute care beds located in Lansing, Michigan. This medical center is home to cardiac programs, state-of-the-art clinical centers for oncology and women and children’s health; medical/surgical units; and a full-service pharmacy. Its residency programs are affiliated with Michigan State University College of Osteopathic Medicine, Michigan State University College of Human Medicine, and the Statewide Campus System. McLaren is currently constructing a new $601 million hospital and cancer research center in Lansing. www.mclaren.org/lansing

The Lansing School District offers rich coursework, magnet programs, and real-world learning experiences offered in partnership with business and industry. Every district school will be new, renovated, or substantially improved in the next few years. Upon graduation, all eligible high school graduates within the Lansing School District boundaries are eligible for the Lansing Promise, a scholarship program offering tuition assistance for post-secondary education. Since 2012, more than 750 Lansing students have enrolled at MSU, LCC, or Olivet College.

www.lansingschools.net

The

The Lansing Lugnuts are a Class-A minor league baseball team in the Midwest League, affiliated with the Toronto Blue Jays.

https://www.milb.com/lansing Lansing by the Numbers Lansing-East Lansing MSA Clinton County | Eaton County | Ingham County Lansing-East Lansing MSA Population by Race

Population

476,615 White alone

2.8% growth since 2010 Black or African American alone

Median Household Income American Indian and Alaska Native alone $56,014 Asian alone Native Hawaiian and Other Pacific Number of Business Establishments Islander alone Some other race alone

18,707 Two or mor e races:

Number of Employees Two races including Some other race

Two races excluding Some other 231,584 race, and three or more races Specialized in Public Admin, Educational Services, and Public Admin

Source: US Census Bureau City of Lansing

City of Lansing Population by Race Population

116,699 White alone

2.1% growth since 2010 Black or African American alone

Median Household Income American Indian and Alaska Native alone $40,325 Asian alone Native Hawaiian and Other Pacific Number of Business Establishments Islander alone Some other race alone

9,434 Two or mor e races: Number of Employees Two races including Some other race Two races excluding Some other race, 55,844 and three or more races

Source: US Census Bureau 2M Riverfront Downtown Development 41M Retail/ Urban Market, Residential and Hotel 500M McLaren Hospital

25M Residential Redevelopment 14M Market Rate Residential Ellison Brewery in REO Town 2019 Total Investment of $497,873,021 Within the City of Lansing Opportunity Zones Overview of Opportunity Zones Program Taxpayers get capital gains tax deferral and forgiveness of certain capital gains for making timely investments in Qualified Opportunity Funds (QOFs) which subsequently invest in Qualified Opportunity Zone Property (QOZP) or Qualified Opportunity Zone Businesses (QOZB).

A fund is formed as a The fund acquires partnership partnership, corporation or An investor uses capital gains interests, stock or tangible limited liability company and realized to invest in the fund business property in certified to the IRS on the date within 180 days businesses located in of its first tax return Opportunity Zones

If the investment is held for at 10% of the original deferred The investor must retain the least 10 years, the investor is gain is permanently forgiven if original investment in the fund entitled to FMV basis step-up, held for 5 years prior to at all times to continue to whereby all appreciation to 12/31/2026. Additional 5% of benefit from the gain deferral the value is excluded the deferred gain is and other tax benefits permanently forgiven if held for 7 years prior to 12/31/2026. Lansing’s Opportunity Zones

Lansing Opportunity Zones

Population Population % Change Square

(2010) (2018) Miles

Ingham 280,891 290,186 3.1% 556.12

County

City of Lansing 114,297 116,699 2.1% 36.05

Opportunity 25,616 26,952 5.2% 8.8

Zones

Cedar Edgewood District

South Downtown District

Old Town

Airport Gateway

Southwest District

Stadium District

http://www.purelansing.com/opportunityzones

Lansing’s Top Employers

Company Industry Employees

http://www.purelansing.com/Demographics

Airport Gateway North Corridor

Located along Lansing’s northwest boundary, this Opportunity Zone is the gateway to the Capital Region. It serves as a high visibility entrance into the city as many air travelers begin their visit here before heading south into Lansing’s downtown or east toward Michigan State University. It is home to the Capital Region International Airport and an all-access airport business park.

Also known as the Gateway Corridor, North Grand River Avenue is the focus of a newly-created Corridor Improvement Authority, which will invest in improvements to create a welcoming and accessible corridor for businesses, residents, and visitors.

This Opportunity Zone is a prime location for industrial and mixed-use commercial investments. In addition to airport accessibility, the area is served by a major rail line.

Census Tract: 26065003301| Size: 0.848 sq mi Population: 2,807 | Jobs: 1,245 | Businesses: 120

Old Town North Cedar / Larch Corridor

Historic Old Town has seen a wave of reinvestment. As Lansing’s original downtown, Old Town is home to a variety of unique local businesses. Beautiful buildings, unique events, and eclectic pop-up shops represent the rich history and vibrant culture of Lansing. Old Town also offers recreation amenities, connecting to the Stadium District and South Downtown Opportunity Zones via the .

This Opportunity Zone is a great place for transformational residential or mixed-use developments offering riverfront amenities.

Much of this Opportunity Zone is serviced by Old Town Commercial Association (OTCA), as well as the North Grand River Corridor Improvement Authority.

Census Tract: 26065006600 | Size: 1.51 sq mi Population: 3,017 | Jobs: 4,227 | Businesses: 383

Stadium District North Cedar / Larch Corridor

The Stadium District, an entertainment district located along Michigan Avenue adjacent to downtown, is home to the Lansing Lugnuts at Cooley Law School Stadium and several new residential and mixed use developments.

This area has seen some of Lansing’s most exciting recent real estate development projects. It features modern mixed-use buildings, local restaurants, bars, and venues, as well as multiple access points to the Lansing River Trail. An innovative urban grocery store and Lansing’s second downtown hotel are currently under construction. This Opportunity Zone is ideal for creative mixed-use and residential investments.

Parts of this Opportunity Zone are served by , Inc.

Census Tract: 26065006600 | Size: 1.51 sq mi Population: 3,017 | Jobs: 4,227 | Businesses: 383

South Downtown Downtown Lansing – Washington Square

The South Downtown district is the business core of the Capital Region, making it a prime location for office, commercial, and residential developments. Downtown Lansing is home to Michigan’s State Government offices, several institutions of higher education, an abundance of businesses, and unique restaurants and shops.

This area has seen significant investment in recent years, including the addition of over 400 downtown housing units which will bring new residents to the heart of the region. Several key community spaces have been revitalized recently as well, including Reutter Park and the riverfront Rotary Park. Downtown offers access to the Lansing River Trail and access to the Grand River.

Lansing’s Principal Shopping District, overseen by Downtown Lansing, Inc. (DLi), is located within this Opportunity Zone.

Census Tract: 26065006700 | Size: 1.10 sq mi Population: 4,547 | Jobs: 30,081 | Businesses: 917

Miles 0 0.25 0.5 1

Southwest District South Martin Luther King, Jr Blvd / Southwest Lansing

The Southwest District is physically the largest and most populous side of the city. The amenities offered in this Opportunity Zone make it ideal for residential and commercial real estate development.

Southwest Lansing has an active business association and access to recreation, grocers, retail establishments, and multimodal transportation. The Lansing River Trail runs through this area, connecting the neighborhood to downtown and Michigan State University. Brand new investments in the area include the Beacon Southwest soccer field, Willard Walker athletic stadium at Risdale Park, and the town square at the intersection of Pleasant Grove and Holmes including a new public art piece.

A Corridor Improvement Authority for South Martin Luther King, Jr Blvd was established in late 2019, which aims to improve neighborhood connectivity, revitalize vacant spaces, and create business attraction programs.

Census Tract: 26065003602| Size: 4.156 sq mi Population: 3,865 | Jobs: 4,225 | Businesses: 383

Cedar Edgewood District South Cedar Corridor / West I-96

The Cedar Edgewood District is ideal for mixed-use redevelopment. Easily accessible to I-96, this is a high visibility gateway into Lansing from the southern suburbs and a major shopping and entertainment destination for the region.

Edgewood Towne Center, one of the region’s leading shopping malls, is located in this Opportunity Zone. This competitive trade area includes national brands such as Meijer, Target, Lowe’s, Kroger, Menards, Aldi, and Celebration! Cinema. Peppermint Creek, a local contemporary theater company, and the historic Roswell Everett House are also located in the district.

Census Tract: 26065005303 | Size: 1.51 sq mi Population: 3,915 | Jobs: 2,643 | Businesses: 160

Miles 0 0.25 0.5 1

Development Opportunities Lansing Shuffleboard and Social Club 325 City Market Drive • PROJECT: The former will be transformed into the Lansing Shuffleboard and Social Club, a multi-purpose social experience offering local residents a gathering space with a variety of affordable food options, entertainment, and employment opportunities. Brought to you by Detroit Rising Development, it will be modeled after their award winning Detroit Shipping Company. • TOTAL DEVELOPMENT COST: $3.25-3.75 million • LOCATION: Ideal Downtown Lansing location on the Grand River next to Rotary Park • INVESTMENT OPPORTUNITY: $825,000 • Target Return Profile: 12-15% IRR • Target Equity Multiplier: 3.5 Times Equity • Profit Sharing: Undetermined. 600 Block Redevelopment 600 Block South Washington

• PROJECT: New Construction and renovation of 36 apartments and 10k sf of pre-leased commercial to national tenants.

• TOTAL DEVELOPMENT COST: $7 million

• LOCATION: First Block (Gateway) in Lansing’s Central Business District directly off of Highway

• INVESTMENT OPPORTUNITY: $1-2 million • Target Return Profile: 15% IRR • Target Equity Multiplier: 2.2 Times Equity • Profit Sharing: 8% IRR Preferential Return

• TIMELINE: Shovel Ready November 2020 800 Block Hotel Site 800 Block South Washington • PROJECT: 110+ key, four story hotel plus 125 • INVESTMENT OPPORTUNITY: $2-5 million onsite parking spaces • Target Return Profile: 10-15% IRR • TOTAL DEVELOPMENT COST: $15 million including • Target Equity Multiplier: 2.2 Times Equity FFE • Profit Sharing: 8% IRR Preferential Return • LOCATION: Vacant site along the Grand River • Partner with Urban Systems, pro forma available with visibility from I-496, at the gateway to REO upon qualified request Town adjacent to Downtown Former Pleasant Grove School 2130 W Holmes Rd The former Pleasant Grove School was the elementary school of Malcolm X. The property is located on a neighborhood commercial intersection in Southwest Lansing with an active business association and access to amenities including recreation, a small grocer, and transit. The proposed project would include office and medical space, as well as age-friendly housing. Partner with Ferguson Development to revitalize this key commercial node. 500 Block Redevelopment 501 S Washington Ave This outstanding development will revitalize a blighted downtown block and bring new residents to the area. The $29 million project will renovate the former Lake Trust building into 23,461 sq ft of office space and 44 apartments. It also includes the construction of a new building at the corner of S Capitol Ave and Hillsdale St with 3,500 sq ft of office space and 116 apartments. Partner with True North Development. Lansing City Hall 124 W Michigan Ave

City Hall is a 0.695 acre site located at the corner of Capitol and Michigan Ave in downtown Lansing, right across the street from the beautiful State Capitol Building. The proposed plan includes the redevelopment of the City Hall building into a top quality national branded hotel flag featuring a boutique specialty restaurant and lounge overlooking the State Capitol Building, along with professional office space. The State Capitol Building will provide an unparalleled backdrop for the hotel, office, and rooftop restaurant to allow visitors, businesses, and residents the opportunity to take full advantage of the views. A goal of the project is to achieve a Silver LEED rating for the building. Partner with the City of Lansing to redevelop and rehabilitate the iconic City Hall building in the heart of downtown Lansing. Performing Arts Center The City of Lansing is working on a performance arts center plan, which includes a modular auditorium for multiple seating arrangements and seating for up to 1,500, allowing for accommodation of various audience sizes. This center aims to attract concerts, symphonies, and other performers to the urban core of the region. The project is expected to locate on a high visibility corridor within a featured Opportunity Zone. Partner with the City of Lansing to bring this significant entertainment facility to Lansing! Resources 2012-2019 CUMULATIVE IMPACT Lansing Economic Area Partnership Total Project Investment (LEAP) $3,080,670,209

LEAP is the economic development Companies Launched Projects Jobs Created organization representing the tri- county region of Ingham, Clinton and Eaton counties in partnership with the 165 134 7,149 Michigan Economic Development Corporation.

www.purelansing.com LEAP Opportunity Zone Network

To gain the most community benefit from the Opportunity Zones Program, many organizations need to be involved. To this end, the Lansing Economic Area Partnership (LEAP) created the Opportunity Zone Network. The Opportunity Zone Network includes members across professions from throughout the capital region with the goal of mobilizing capital and catalyzing projects in targeted areas.

Connect Support Catalyze

Connecting the key players (developers, Understanding the need for efficiency, The Opportunity Zone Network helps investors, banks, municipalities, support from the network members is key players work together to catalyze attorneys, accountants, funds etc.) early necessary to help get over hurdles projects in targeted areas. Experienced on is crucial in understanding the along the way. Intensified marketing project expertise with the myriad of logistics behind the program and through prospectuses garners the other incentives helps make this a ensuring a more efficient process within financial and social support required to profitable venture for all parties, and the already time-constrained incentive. make projects ‘shovel ready’. ultimately the community.

Learn more: www.purelansing.com/opportunityzones Lansing Economic Development Corporation (LEDC)

The Lansing Economic Development Corporation (LEDC) is a nonprofit organization established for the purpose of attracting, expanding and retaining business and industry in the City of Lansing. The LEDC acts as an ombudsman and business advocate on behalf of a private business with City agencies, conducting a full-time pro-active business retention program as a liaison with local, regional and state organizations. • Lansing Tax Increment Finance Authority (Lansing TIFA) • Obsolete Property Rehabilitation Act (OPRA) - PA 146 of 2000 • Redevelopment Sites and Brownfield Redevelopment • Neighborhood Enterprise Zone Act - PA 147 of 1992 - Neighborhood Enterprise Zone Program • Lansing Regional SmartZone • Small Business Loans • Industrial Development Districts & Plant Rehabilitation - PA 198 of 1974 - Property Tax Abatement • Act 425 Intergovernmental Agreement for Development • Personal Property Tax Abatement - PA 328 of 1998 • Corridor Façade Improvement Program Corridor Improvement Authorities The City of Lansing is home to four Corridor Improvement Authorities, which allow the use of tax increment financing (TIF) to make capital improvements within these established commercial districts. The Corridor Improvement Authorities advocate for and make improvements to the corridor over a long period of time. They are designed to assist economic development, redevelopment and stimulate revitalization along the corridor. Lansing’s four Corridor Improvement Authorities are along the following corridors, shown on the map to the right: • Michigan Avenue • Saginaw Street • North Grand River Ave (the Gateway Corridor) • South Martin Luther King, Jr. Blvd (Boundaries shown on map are approximate) Cinnaire Cinnaire is a full-service community development financial partner that supports community stabilization and economic development by developing and nurturing partnerships with investors and mission- focused organizations. They provide creative loans, investments, and best-in-class services to their partners. They fill the gaps in community development funding by leveraging capital from public and private sector organizations and bringing expertise to communities that need it most, with a goal of creating healthy communities. Lansing Facts: • Over 40 projects supported (~88% is multifamily housing, 12% is small business and other commercial real estate) • More than $60M in equity invested • Over $172M in development costs leveraged • Over 1,900 housing units supported • Over 2,200 jobs supported (construction and permanent) Michigan State University Extension

Michigan State University Extension helps people improve their lives by bringing the vast knowledge resources of MSU directly to individuals, communities and businesses. The National Charrette Institute at Michigan State University and MSU Extension offer a statewide training series titled “Opportunity Zones (OZ): There’s No Place Like Home!” The National Charrette Institute is dedicated to transforming the way people work together by building capacity for collaboration by design. https://www.canr.msu.edu/outreach/ Https://www.canr.msu.edu/nci/ Michigan Historic Preservation Network

Founded in 1981, the Michigan Historic Preservation Network (MHPN) is the largest membership organization in the state dedicated to recognizing and preserving Michigan’s rich cultural and architectural heritage. Programs Preservation Fund – Predevelopment Loan: provides financial support for projects rehabilitating historic buildings in Michigan. The loan fund covers reasonable third party costs that occur in the early stages and are necessary in making the project happen. Preservation Fund - Intervention Program: Provides low interest loans for repairs to historic buildings. The primary aim of this program is to stabilize historic properties that are threatened by one or more failures of major building systems. Further, this program is designed to align with, and support, other more comprehensive efforts to rehabilitate the building. Ingham County Land Bank

The Ingham County Land Bank assists in creating better communities by bringing together neighbors, government, funders and other community stakeholders to enhance neighborhoods through housing renovation, blight removal, gardening and other efforts to strengthen the quality of life in greater Lansing. Details on the Hardest Hit Blight Elimination Program can be found here. An interactive map of properties can be found here. Capital Area Michigan Works!

Recognized nationally as the largest and most progressive workforce development association in the country, Capital Area Michigan Works! offers assistance to both employers and job seekers. Operated throughout the state of Michigan, this program has a local focus and offers training at each location designed to meet the needs of the area workforce. http://www.camw.org PROTO InsurTech

PROTO empowers entrepreneurs through financing and a wide range of programming to help them bring their ideas to market. The goal is to get new and innovative products and services into the marketplace. PROTO is based in Lansing, Michigan in the historic REO Town neighborhood and is a subsidiary of the Lansing Economic Area Partnership (LEAP). As a low-cost market nestled in the heart of the Great Lakes, Lansing’s strong existing insurance cluster, pipeline of industry-honed talent, and InsurTech- focused entrepreneurial culture make it a safe haven for insurance industry leaders looking to invest in a bright future. PROTO Accelerator is a new business accelerator platform offering equity investment, expert guidance, and connectivity with insurance industry leaders to technology startups geared toward insurance solutions. Invest Southwest

Since 2016, the City of Lansing, Lansing Economic Area Partnership (LEAP), Southwest Action Group (SWAG), Southside Community Coalition (SSCC), Capital Area Soccer League (CASL), Ingham County Health Department (ICHD), Lansing School District, and many others have led a concerted effort to revitalize Southwest Lansing. During this initiative, over $1.4 million in public and private investment has been committed along the corridor, including: • The creation of Lansing’s newest park with multi- generational recreation options (soccer field, trail, and playground) • The dedication of a $75,000 Public Art Sculpture in a new Town Square that will also include $60,000 in landscape design • $45,000 in targeted façade improvement dollars to assist a local grocery store • $800,000 to complete a new sports stadium More information Downtown Lansing Inc.

Downtown Lansing Inc. (Dli) is dedicated to making Lansing a place where people want to be, by encouraging its businesses, neighborhoods, and stakeholders to build a dynamic culture known for its vibrancy, sustainable growth, and business friendly environment. Downtown Lansing Inc manages a local Main Street Program and Principal Shopping District that is one of the most populous and largest geographically in Michigan. https://www.downtownlansing.org/ Old Town Commercial Association

The Old Town Commercial Association is a non- profit organization dedicated to the revitalization of Lansing’s Old Town through socioeconomic development, historic preservation, business recruitment and community outreach. Rich and vibrant streetscapes provide a gateway to Old Town’s livable, walkable and family-friendly community. http://iloveoldtown.org/ REO Town Commercial Association

The REO Town Commercial Association was established in 2001 by a group of business owners and neighborhood residents to promote cultural and commercial development in REO Town. REO Town is originally home to the R.E. Olds Motor Company. Today, REO Town is known for its vibrant arts scene and is home to a dynamic and diverse community of restaurants, retail shops, and professional services. https://reo.town/

Karl Dorshimer Business Development Vice President, Economic Development [email protected] Division (517) 702-3387 - 211 http://www.purelansing.com/opportunityzones