NMTC financing supported the acquisition and conversion of an existing 82,922 sq. ft. industrial building in North Minneapolis into a state-of-the-art Volumetric Modular Manufacturing Plant. The manufacturing facility is located in an historically under-invested area of Minneapolis and will generate lasting economic activity for the community.
The Phillips and Powdertown neighborhoods’ workforce are two times below the federal poverty level when compared with the rest of Hennepin County. This facility provides much needed and desired high wage jobs to the North Minneapolis area.
George Modular manufactures volumetric steel modular units that are transported and erected on-site to create a complete building; this reduces material shortages and minimizes waste. The modules are also utilized in the much needed affordable and market rate housing throughout Minnesota and the Midwest. The company builds units for both residential and lodging projects within a 400: mile radius of the facility.
Given the pioneering nature of modular home manufacturing, traditional lending partners hesitate to participate in this innovative construction process. George Modular received funding from state, city and county agencies; in addition to, funds from various foundations and owner equity. However, without the much-needed New Markets Tax Credit financing to close the financial funding gap, the project would not have come to fruition. George Modular utilized three CDEs for NMTC financing: the National New Markets Tax Credit Fund, Inc. (CRFUSA); SB New Markets CDE, LLC; and USBCDE LLC. Collectively, the CDEs provided $21.5 million in allocation.
The project generated the following benefits to the North Minneapolis area:
- 171 construction jobs and over 160 full-time jobs accessible to minority / majority low-income neighborhoods and pay an average starting salary of $30/hour
- Accessible quality jobs that assisted with growing community wealth by cultivating asset building