New Markets Tax Credit Provides Investment to Support New Headquarters & Manufacturing Facility for Tommy Car Wash Systems
Tommy Car Wash Systems will expand its manufacturing capacity by constructing a new headquarters and manufacturing facility with $13 million in New Markets Tax Credit (NMTC) allocation. Cinnaire, in partnership with Michigan Community Capital (MCC), Huntington Bank, and Fifth Third Bank, provided financing to support the $32.6 million development.
The site chosen for the expansion has been sitting vacant for more than 20 years along Waverly Road in southeast Holland, MI. The new development will include a roughly 245,000 square-foot building to house production space, assembly area, office space and a demonstration center. Tommy Car Wash Systems will occupy 85% of the resulting space, and Tommy’s Express will use the rest for offices. The corporate offices will also allow franchise owners from across the country to come to the corporate office for meetings and trainings.
Tommy Car Wash Systems expansion will create or retain over 300 new full-time equivalent jobs in a census tract where 34.8% of the population falls below the poverty line. More than 200 of these jobs are accessible to people with accredited education under a four-year degree.
“At Cinnaire, we make it a priority to advance healthy communities,” said Peter Giles Cinnaire Vice President, Business Development. “Access to high-quality job opportunities is one of the most important components of a healthy community. Tommy Car Wash Systems has a 50-year history of providing employment opportunities that allow team members to build their skills with an innovative company focused on giving back to the communities it serves. The New Markets Tax Credit will support Tommy Car Wash Systems to revitalize a blighted property while creating economic impact, supporting job growth, and strengthening the Holland community. This project is a prime example of how the NMTC brings capital to communities that need it most and we look forward to seeing the vision of this new facility become a reality.”
As a recipient of the NMTC allocation, Tommy Car Wash Systems will continue to provide training opportunities to new and existing employees; make available opportunities for advancement to employees, including employees with lower levels of education; utilize recruitment partnerships with Holland Rescue Mission, Western Michigan Adult and Teen Challenge, 70×7 nonprofit, Preferred Solutions, and Grand Valley State University.
“Tommy Car Wash Systems is an impactful employer in the area,” said Eric Hanna, President and CEO at Michigan Community Capital. “Supporting this project means supporting over 300 positions and utilizing a property that has been vacant for over 20 years. Tommy’s commitment to creating high-quality employment opportunities and on-the-job training aligns with the values of Michigan Community Capital.”
“Old National is privileged to be a part of the financing team for this project,” said Mike Harbaugh, Vice President at Old National Bank. “One of the focuses of Old National’s New Markets Tax Credit platform is investing in businesses that create jobs in distressed communities. This site location has been vacant for some time, and is in an area with a 34.8% poverty rate. The new facility will allow Tommy’s to scale their business while providing quality and accessible jobs for people in West Michigan. Tommy’s will also continue to build on its employee training and advancement opportunities with this expansion, and the ONB team is excited to see it all take shape.”
Fifth Third Bank is supporting the project as a direct lender and leverage lender.
“Our team at Fifth Third is grateful for the opportunity to support Tommy’s as they make this important investment in their business,” said Scott Lubbers, Senior Vice President of Commercial Banking at Fifth Third Commercial Bank. “Tommy’s growth will continue to benefit our community for years to come.”
To learn more about Tommy Car Wash Systems, please visit https://tommycarwash.com.