PIDC, Philadelphia’s public-private economic development corporation, today announced the launch of a new $6 million Impact Development Fund to support commercial, industrial, and mixed-use development in neighborhoods and commercial corridors throughout Philadelphia.
PIDC’s Impact Development Fund provides new capital for neighborhood-based development, driving revitalization in communities that can often be overlooked by traditional lenders and often need that investment most. The Fund will target loans of up to $2M for commercial, industrial, and mixed-use development and tenant improvements on commercial corridors in Philadelphia’s low-income communities.
“PIDC is committed to driving growth to every neighborhood of Philadelphia,” said PIDC President, John Grady. “The Impact Development Fund will allow PIDC to invest flexible capital to spur impact developments in commercial districts throughout the city, broadening the economic gains that have been seen in many parts of Philadelphia over this last economic cycle.”
PIDC’s first investment from the Fund is a $1.1 million loan to Don Pedro Meats and Market, an established butcher shop owned and operated by an immigrant couple on Castor Avenue in Oxford Circle that is expanding to a full-service neighborhood market.
“These funds have allowed us to expand operations to more than double our previous square footage in a new facility across the street,” said Pedro Vitor, co-owner of Don Pedro Meats and Market. “The new store allows us to grow our business and better serve our community with a wider variety of products and services, and we are grateful PIDC has been willing to work with us to make this possible.”
The capital for the initial Fund is being invested by PIDC, U.S. Bank, and from the proceeds of a loan from the Philadelphia Redevelopment Authority (PRA) to PIDC. PIDC is seeking to raise an additional $10 million to capitalize future rounds of the Fund by 2020.
“We welcome the opportunity to expand our relationship with PIDC in Philadelphia by investing equity from PIDC’s New Markets Tax Credit allocation for this new fund. U.S. Bank recognizes that growing neighborhood commercial districts need flexible capital to support employment, business growth, and expand services. We’re excited to be part of this growth strategy for Philadelphia,” said Tom Oldenburg, vice president of U.S. Bancorp Community Development Corporation, a division of U.S. Bank.
“PRA is thrilled to be part of this initial phase of PIDC’s Impact Development Fund,” said Gregory Heller, Executive Director of the PRA. “We value the strong partnership between PRA and PIDC which has allowed us to leverage other investments and PIDC’s lending experience to deploy a fuller set of products and services to support all facets of community and economic development.”
To assess the market needs and guide the development of new resources for development projects in the city, PIDC convened a 75+ member Advisory Committee comprised of for-profit and non-profit developers, bankers and investors; City officials; and neighborhood-based organizations. The Advisory Committee clearly identified that opportunities for development and job creation exist throughout the city, but that a different kind of capital was needed to unlock those opportunities.
To receive more information about the Impact Development Fund, please contact 215-496-8020 or info@PIDCphila.com.