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? Michigan’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 Sparrow Hospital 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 Lansing School District 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 Lansing Lugnuts 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