PORT AUTHORITY ESTABLISHES LOAN FUND VEHICLE FOR CINCINNATI URBAN BUSINESS DISTRICT DEVELOPMENT

FOR IMMEDIATE RELEASE:

December 14, 2016

CONTACT:

Gail Paul, Director of Communication Strategy

Port of Greater Cincinnati Development Authority

513.621.3000

gpaul@cincinnatiport.org


PORT AUTHORITY ESTABLISHES LOAN FUND VEHICLE FOR CINCINNATI URBAN BUSINESS DISTRICT DEVELOPMENT

Kresge Foundation agrees to seed the fund with initial capital; 10-year, $5 million loan

CINCINNATI – The Port of Greater Cincinnati Development Authority announced its board of directors today approved the establishment of a Cincinnati Neighborhood Commercial Real Estate Loan Fund that will focus on rebuilding commercial districts in targeted neighborhoods.

The Fund is part of a program aligned with the Port Authority’s strategic initiative to comprehensively revitalize disinvested target neighborhoods through acquisition and rehab of blighted residential properties and development of commercial districts with place-based, neighborhood-serving retail, arts and culture, and microenterprise.

Among the program goals are to help lower the barrier for local business formation by providing available space for target tenants; stabilizing neighborhoods through the support of entrepreneurship; and restoring vibrant retail and commerce with a focus on inclusivity and engagement of neighborhood-based enterprise.

The Kresge Foundation, a private, national foundation based in metro Detroit, will provide initial capital for the fund as a $5-million loan. The Port Authority will administer the fund and develop the program. Kresge’s mission is to expand opportunities for low-income people in America’s cities through grantmaking and social investing

“The revolving loan fund will provide critical capital needed to finance the development and rehabilitation of mixed-use/commercial/retail space within the business districts,” according to Laura Brunner, Port Authority President & CEO. “We are thrilled about Kresge’s participation in this program – it allows for the Port to accelerate the important work of revitalizing neighborhoods in a way that benefits all residents.”

Ms. Brunner said the Port Authority anticipates announcing a 2017 real estate project that is facilitated by this loan fund. Nationally, Kresge’s investment is among the first partnerships between a national foundation and a development finance agency.

For Kresge, the investment is part of a relatively new channel of work for its social investing team, focusing on investing in mixed-income, mixed-use developments.

“We’re excited to support the Port Authority through this fund, to invest in neighborhood commercial corridors throughout the city of Cincinnati,” said Aaron Seybert, social investment officer, Kresge Foundation. “We believe mixed-income, mixed-use communities are a platform to greater economic mobility in America’s cities by combining integrated housing strategies with neighborhood based entrepreneurship.  The Port Authority is demonstrating how coordinated investments in housing combined with smart economic development can achieve far more than either strategy could alone.”

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About the Port of Greater Cincinnati Development Authority:

The Port of Greater Cincinnati Development Authority is an economic development finance agency that initiates projects to improve property value and promote job creation throughout Hamilton County. It is governed by business and community leaders appointed by the City and the County to its board of directors.

About The Kresge Foundation:

The Kresge Foundation is a $3.6 billion private, national foundation that works to expand opportunities in America’s cities through grantmaking and social investing in arts and culture, education, environment, health, human services, and community development in Detroit. In 2015, the Board of Trustees approved 371 grants totaling $125.2 million, and nine social investment commitments totaling $20.3 million. For more information, visit kresge.org.