PHILANTHROPY & SOCIAL SERVICES

from Grand Rapids Business Journal - Book of Lists 2022

EDUCATION

Nonprofit expanding facilities and services

Dégagé Ministries is expanding its current facility and services with the help of funding from Michigan Community Capital (MCC).

The organization that serves individuals experiencing homelessness in Grand Rapids was granted a $7.5 million New Markets Tax Credit (NMTC) from MCC, kickstarting a two-phase project renovation of Dégagé’s 100-year-old building at 144 S. Division Ave., contracted by Rockford Construction.

The tax credit also will 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 tax credit equity from Old National Bank’s ONB Community Equity to help finance the project. Dégagé also is using a leverage loan for the transaction from capital campaign proceeds and a bridge loan from Macatawa Bank.

“We’re pleased to contribute to a vital and impactful project in a severely distressed area,” said Eric Hanna, president and CEO at MCC. “Not only will this project provide a safe space to serve people experiencing homelessness in Grand Rapids, it will also enable patrons access to tools designed to equip them with the skills required to attain — and maintain — employment and housing.”

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

The ongoing construction of the phase one addition to the existing facility will include new features such as 66 beds with personal storage units, laundry facilities, a commercial kitchen and a large attached dining facility. Phase one was expected to be completed near the end of 2021.

Phase two construction will begin in January, with an estimated completion date of July 2022. The second phase will feature upgrades to the existing facility, including a new coffee/retail shop for Pauls’ Moms’ Cookies (PMC) which donates 100% of its proceeds to Dégagé’s Open Door Women’s Center. Open Door offers overnight shelter for women in crisis and PMC provides jobs to women who have graduated from the center’s program. Additional upgrades to the existing facility will include a new wellness center for individuals recovering from illness or surgery and larger, updated classrooms for job and life-skill training for up to 1,000 individuals annually.

“ONB Community Equity is honored to support the financing of this expansion so the Dégagé team can enhance their dedication to delivering help and hope to people facing housing insecurity and other underserved individuals in Grand Rapids,” said Mike Harbaugh, VP, tax credit relationship manager at Old National Bank.

The project is expected to support 64 new and existing positions at Dégagé. Sixty employees, including contractors and subcontractors, 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 critical project possible,” said Thelma Ensink, executive director of Dégagé Ministries. “Because of Michigan Community Capital’s investment in this project, we will be able to provide a workforce development, a social enterprise business with a retail space on South Division, a wellness center and more. This investment and project help us take big steps forward to reduce homelessness and poverty in our community.”