NMTC Funding For Climate by Design International - Mascoma Bank

NMTC Funding For Climate by Design International

author imagePosted by Mascoma Bank on October 27, 2022

Mascoma Community Development (MCD) is pleased to announce the closing of $10 million in New Markets Tax Credit (NMTC) allocation to finance the construction of a 200,000-square-foot headquarters, including manufacturing and warehouse facility and equipment procurement, for Climate by Design International, LLC (CDI) in Owatonna, Minnesota.

This facility will allow CDI to grow the company’s workforce and keep pace with increased demand for products, as well as continue to maintain economic impacts of the business in a low-income community.

“CDI’s new facility will allow them to respond to market demand and expand their business with increased production capabilities and more efficient manufacturing processes. MCD is pleased to provide funding to help CDI create further potential job opportunities and economic impact in a low-income community,” states Tad Atwell, Chief Operating Officer of MCD.

MCD is a Community Development Entity established by Mascoma Bank that creates impactful jobs in highly distressed, low-income rural and minor-urban communities. MCD also targets downtown redevelopment projects which help revitalize communities and provide services to residents.

CDI plans on Exterior image of the buildingnot only retaining their current employees but also creating over 100 new jobs, which will be 100 percent available to low-income community residents. CDI currently has 155 full-time equivalent (FTE) positions at the existing facility, and 120 new FTEs are anticipated upon completion of the project. Two hundred seventy-five (100%) of the total jobs at the facility will be available to low-income community residents and 235 (86%) of the total jobs at the facility are estimated to be available to low-income persons. All jobs surpass the MIT living wage threshold, deeming them “Quality” jobs.

The CDI facility will be located in a Federally Qualified Opportunity Zone, which is a district directly identified for redevelopment and revitalization. The project also aligns with the City of Owatonna’s community development goals by “focusing their efforts to support industrial and manufacturing companies to expand in or relocate to Owatonna.” It is anticipated that the

alignment of the CDI project with the overall goals of Owatonna’s Community Development Department will support further economic development, attraction of other businesses, and job opportunities.

The new CDI facility will double the business’s current footprint from 100,000 square feet to 200,000 square feet. CDI will sell the existing site and vacate the property once the new facility is completed. Construction of the new facility is anticipated to be completed by September 2023.

CDI President Tom Peterson shares, “We are very grateful that CDI can continue to grow in the community of Owatonna and offer well-compensated jobs in a state-of-the-art facility, pursuing our core values of Customer Focus, Team Unity, Integrity, Safety and Wellness, and Resourcefulness.”

U.S. Bank is investing New Markets Tax Credits equity to help finance this project. “U.S. Bank believes everyone deserves an opportunity to achieve financial stability,” says Pat Carmody, Project Manager with U.S. Bancorp Community Development Corporation (USBCDC), the tax credit and community investment subsidiary of U.S. Bank. “We’re proud to help Climate by Design International expand and create skilled jobs with good benefits that not only support the individuals who work here and their families, but the entire community of Owatonna.”Sign of future construction

MCD is pleased to report that this project has also made possible MCD’s grant of $50,000 to its CDFI partner, Midwest Minnesota Community Development Corporation (MMCDC), headquartered in Detroit Lakes, Minnesota. This grant from MCD, in partnership with MMCDC and the local Owatonna Independent School District No. 761 Foundation (a 501c3 tax exempt organization), will support up to twenty-five scholarships of $2,000 each, which, pursuant to a satisfactory application, will be made available as a one-time opportunity for graduating high school students, ALC students, and adult learners that attend a local technical or community college within a 50-mile radius.

There is a very strong, established manufacturing industry in the community of Owatonna and several of the major manufacturers in the community have discussed the need for younger qualified applicants to fill skilled positions.

MCD takes great pride in supporting organizations and programs that strengthen the communities they serve. MCD commends the important work of MMCDC, and all CDFIs, and is pleased to support these efforts with this grant.