Flex-N-Gate: The Transformative Impact New Markets Tax Credits Effingham, Illinois
Flex-N-Gate’s transformative expansion in Effingham, IL, highlights the powerful impact of New Markets Tax Credits (NMTC). With a $10 million allocation from Central States Development Partners, Inc. and additional support from non-affiliated Community Development Entities (CDEs), Flex-N-Gate has breathed new life into a 660,000-square-foot manufacturing facility in a rural community where the median family income is just 72.35% of the national average.
The NMTC funding was pivotal in converting a dilapidated facility into a vibrant hub for advanced automotive lighting components. This project included the acquisition, renovation, and installation of new equipment, and has enabled Flex-N-Gate, a leading global manufacturer, to commence operations and create 350 new jobs in the first phase of renovation. Not only does this project facilitate new parts supply contracts for Electric Vehicle (EV) and traditional propulsion components, but it also exemplifies how strategic NMTC funding can rejuvenate distressed areas and drive substantial economic growth.
Project Overview:
- Total Project Cost: $78.6 million
- Central States Development Partners, Inc. NMTC Allocation: $10 million
- Co-CDE’s: FirstPathway Community Development, SCORE (Southside Community Optimal Redevelopment Enterprise), Cinnaire, LEGF (Legacy Economic Growth Fund)
Job Creation and Workforce Development:
- New Permanent Jobs Created: 311
- Construction Jobs Created: 100
- Average Wage for Permanent Jobs: $42.08/hr
- Average Wage for Construction Jobs: $30.69/hr
- Accessible Jobs: 84% of the new jobs are accessible to low-income residents
- Benefits: Full benefits including medical, dental, vision, short-term disability, life insurance, and a 401(k) savings plan
- Training and Recruitment: Collaborations with local high schools and Lake Land College to provide advanced manufacturing training and recruit local residents.
Alignment with Community Goals:
The project aligns with the South Central Illinois FY2020 – 2022 Comprehensive Economic Development Strategy, addressing challenges such as stagnant population growth and outmigration in rural areas. By creating 311 new jobs and providing advanced manufacturing training, the project supports local economic development and workforce enhancement.
The Power of New Market Tax Credits:
Flex-N-Gate exemplifies the vital role of NMTCs in transforming economically distressed areas. Since 2012, Central States has deployed $104.9 million in NMTCs across Illinois, its home state, leading to the creation and retention of 3,026 jobs and representing $237 million in total project costs. The NMTCs made it possible for Illinois and Effingham, a rural community, to remain competitive, facilitating the purchase, renovation, and equipping of the Effingham facility. Without this crucial funding, the project could not have moved forward, highlighting the NMTCs’ importance in driving economic revitalization and supporting local communities.
About Central States Development Partners, Inc.
As an Equal Opportunity Provider. Central States Development Partners, Inc. (Central States), a nationwide Community Development Entity (CDE), was formed by its parent non-profit, Economic Growth Corporation (GROWTH), to provide investment capital to low-income communities and individuals. Central States has received six consecutive federal New Markets Tax Credit (NMTC) allocation awards totaling $220 million, along with state NMTC allocations from Nevada, Kentucky, and Illinois. To date, Central States, either independently or together with other unaffiliated CDEs, have made NMTC investments in 15 states, resulting in over $842 million in total project costs and facilitating the creation or retention of 12,676 jobs in highly distressed low-income areas.