Revitalizing Michigan Communities Through Investment Crowdfunding

Shutterstock

 

Connecting state and local government leaders

2018 NAVIGATOR AWARD WINNER: Katharine Czarnecki, Senior Vice President for Community Development, Michigan Economic Development Corporation

This is the last of a series of 10 profiles on the winners of the 2018 Route Fifty Navigator Awards.

One of the common misconceptions about Michigan’s economy is that everything is tied to the strength of the automotive sector. And while the auto industry indeed continues to be an important player in the state’s economy, the health of many Michigan communities is oftentimes more intertwined with the health of smaller businesses.

In late 2013, Gov. Rick Snyder approved legislation that is known as the Michigan Invests Locally Exemption, or MILE, law, which laid the foundation for “investment crowdfunding” in the state—a mechanism that allows people to help fund a new business or project while getting a small stake.

Among the driving principles around investment crowdfunding is that it connects new businesses and enterprises with capital that they may not be able to access through traditional lending while allowing members of the community to invest in local businesses and organizations that they feel are important to their locality’s success and economic well being.

While Michigan wasn’t the first state to implement an investment crowdfunding law, it’s received national attention for some of the innovative ways it has leveraged the program for economic development in smaller- and medium-sized cities.

Built atop the MILE law is the Public Spaces Community Places program, a placemaking collaboration from the Michigan Economic Development Corporation, the Michigan Municipal League and Patronicity, a crowdfunding and crowdgranting platform that works with cities and other organizations.

Projects funded through the PSCP program “must demonstrate the activation of a new or distressed public space or community place.” Through PSCP, qualifying crowdfunded projects get up to $50,000 in matching funds from the MEDC.

The PSCP program, according to a Navigator Award nomination submission, “mixes traditional economic development with community development in a way that recognizes the growing importance of traditional downtowns, high density living and working, and the migration back to core communities.”

Integral to the program's success has been Katharine Czarnecki, the MEDC’s senior vice president for community development, who has been a champion not only for the PSCP program but all Michigan communities looking to revitalize their main streets and downtown areas.

The PSCP numbers are impressive: More than 170 total projects, a 98 percent success rate, more than $6 million crowdfunded, around $5 million in matched dollars from the state, approximately 31,000 crowdfunding donors and about 7,200,000 total square feet activated.

Michael Grass is Executive Editor of Route Fifty and is based in Seattle.

FEATURED CASE STUDIES
Powered By The Atlas
Erie County, PA offers all local restaurants free digital tools to plan for safe COVID reopening
Erie County, PA, USA
Online permitting and approval process during COVID-19 exceeds in-person performance numbers
Markham, ON, Canada
Chula Vista creates a Digital Equity and Inclusion Plan
Chula Vista, CA, USA

NEXT STORY: States Rush to Collect Online Sales Tax

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.