Non-profit to expand its facilities and services

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Dégagé Ministries is expanding its current facilities and services with funding from Michigan Community Capital (MCC).

The organization that serves homeless people in Grand Rapids secured a $ 7.5 million New Business Tax Credit (NMTC) from MCC, which kicked off a renovation project in two phases of the centenary building of Dégagée at 144, avenue Division S, contracted by Rockford Construction.

The tax credit will also fund a 9,945 square foot addition that will expand the facility’s footprint to approximately 26,500 square feet.

MCC’s $ 7.5 million allocation resulted in a $ 2.3 million ONB Community Equity tax credit from the Old National Bank to help fund the project. Cleared also uses a leveraged loan for the transaction from the proceeds of the fundraising campaign and a bridge loan from Macatawa Bank.

“We are delighted to contribute to a vital and impactful project in a region in great distress,” said Eric Hanna, President and CEO of MCC. “Not only will this project provide a safe space to serve homeless people in Grand Rapids, it will also give clients access to tools designed to equip them with the skills they need to get – and keep – jobs and housing. “

The renovation and expansion will increase the capacity of the shelters from 14,600 to 27,010 overnight stays per year by replacing 40 sleeping mats with 74 beds. Plans also include a new dining hall, increasing the number of meals served to those in need by nearly 50%.

The ongoing construction of adding Phase 1 to the existing facility will include new features such as 66 beds with personal storage units, utility room, commercial kitchen and adjoining large dining room. The first phase is expected to be completed by the end of 2021.

Construction of phase two will begin in January and is expected to be completed in July. The second phase will include improvements to the existing facility, including a new café / shop for Paul’s Mom’s Cookies (PMC) which donates 100% of its proceeds to the Open Door Women’s Center in Dégagé. PMC provides an overnight shelter for women in crisis and offers jobs for women graduating from the centre’s program. Further upgrades to the existing facility will include a new wellness center for people recovering from illness or surgery and larger and updated classrooms for professional and hands-on training that can accommodate up to 1,000 people per year.

“ONB Community Equity is honored to support funding for this expansion so that the Dégagé team can strengthen its commitment to providing help and hope to those facing housing insecurity and others. underserved in Grand Rapids, ”said Mike Harbaugh, vice president, director of tax credit relations. at the old National Bank.

The project is expected to support 64 new and existing positions at Dégagé. Sixty employees, including contractors and sub-contractors, are expected to be employed as a result of the project.

“We are grateful to Michigan Community Capital, Old National Bank and Macatawa Bank for making this essential project possible,” said Thelma Ensink, Managing Director of Dégagé Ministries. “With Michigan Community Capital’s investment in this project, we will be able to provide a workforce development, a social enterprise with retail space on the south division, a wellness center. be and more. This investment and project are helping us take great strides towards reducing homelessness and poverty in our community.


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