NMTC Funding for Coastal Container - Mascoma Bank

NMTC Funding for Coastal Container

author imagePosted by Mascoma Bank on May 15, 2023

Mascoma Community Development (MCD) is pleased to announce the closing of $10 million in New Markets Tax Credit (NMTC) allocation to finance the purchase and installation of equipment as part of the expansion of an industrial manufacturing facility in Holland, Michigan.

The expansion will allow Coastal Container Corporation, a locally owned, full-service packaging solutions company, to create quality, full-time jobs while increasing operational efficiency and making a significant positive environmental impact on the region.

“Coastal Container is creating a substantial number of high-quality jobs with opportunities for personal and career growth in its Allegan County location. This aligns well with the mission of MCD to support the creation of quality jobs in disadvantaged communities,” says Michelle LeClair, Chief Investment Officer of MCD.

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

The 60,235-square-foot expansion of Coastal Container’s existing 218,546-square-foot manufacturing facility will include a new equipment line which will create 99 new full-time jobs. Seventy-five of the jobs will be accessible to people requiring no more than a high school degree or GED, and all will offer a benefits package. Coastal Container is located within walking distance of more than 300 units of housing, where most area residents live, making it accessible to those with limited transportation. Many of the residents are non-English speaking. Coastal Container provides English as a Second Language classes for its employees on-site. In the expansion, Coastal Container will install a corrugation system that will decrease material costs and help insulate the company from supply chain constraints.

Coastal Container is committed to making environmentally sound choices, so its end products are renewable, recyclable, and compostable. NMTC funding will allow Coastal Container to make targeted investments that will reduce negative environmental impacts by reducing diesel fuel usage and road wear related to trucking by installing a rail hub at its facility. A portion of the new equipment will allow for pretreatment of wastewater, while a scrap and dust collection system will decrease the use of natural gas for heating air.

“We’re extraordinarily grateful for our partners at MCD as well as the work of everyone involved to bring this great investment to our community—it was a massive effort,” says Brent Patterson, CEO of Coastal Container. “As one of the few family-owned, locally managed container companies in our industry, the vertical integration of corrugation capabilities will let us compete on a larger scale to better serve our people, our customers, and our community.”

MCD is pleased to report that this project has also made possible MCD’s grant of $50,000 to Community Development Financial Institution (CDFI) partner Michigan Women Forward (MWF), headquartered in Detroit, Michigan. MWF’s mission is to expand economic opportunity, empower the next generation, and celebrate and honor the accomplishments of Michigan women. Proceeds of the grant are planned to be used for small grants, loan repayment, and technical assistance and support for small businesses, increasing the likelihood of women and women entrepreneurs of color staying in business because of available resources and improved financial knowledge. MCD takes great pride in supporting organizations that strengthen the communities they serve.