Next Steps

Dear Boss,

Previous memos covered Hillsdale’s past and my plan for the future. Now, I’d like to take stock of where things stand today. It’s all well and good to have big dreams, but realizing big dreams requires the capacity to take big steps.

As of today, I have 16 buildings under outright ownership. No loans, grants, or outside investors are yet involved. These buildings cover around 100,000 square feet, over 50% unused or uninhabitable. There are 31 tenants in these buildings, which is relatively low considering that each building can support at least two, but many could support five or more tenants after we renovate the spaces. These buildings vary in condition; some require complete renovations, others require only slight improvements. If I could not source outside investment for this project, I would still be able to fix these buildings slowly, taking on one or two of them each year until all are wholly restored.

Fixing and filling these existing buildings with tenants would make this project profitable in the long term, but more space is needed to fulfill the vision. I aim to purchase at least four more buildings totaling more than 300,000 additional square feet. In previous posts, I outlined my vision to supercharge Hillsdale’s economic prospects by creating a new college of fine trades and a large-scale conservative conference in Hillsdale. The remaining properties offer the potential to fulfill those goals. They contain enough space to start a school, create an event center, build a new hotel, and more.

The past two years have been spent acquiring these buildings and preparing for our next steps. Once the properties are finally acquired, I can structure a package that utilizes tax credits, grants, and debt to entice investment in Hillsdale.

It is simply the case that we are taxed too heavily in America. Our tax dollars are taken away and frittered on meaningless vanity projects, roads to nowhere, or absorbed by the administrative state. While it would be best if these tax dollars were never taken from us in the first place, for the moment, one of the few ways to return these dollars to the local economy is to apply to state and federal tax credit and grant programs.

I am working with Pago USA to access these tax credits and grants and execute renovation plans. Pago, started by Hillsdale College graduate Eric Doden, is a consulting firm dedicated to restoring Midwestern downtowns. They have completed projects in Fort Wayne, IN, and Cincinnati, OH, among other downtown areas. Their premier project is underway in Van Wert, OH, helping the Van Wert Community Foundation restore their downtown district and breathe into it new life.

One significant incentive we will pursue is the New Market Tax Credit (NMTC). The NMTC was created to incentivize investors to invest in low-income markets. It works by allowing an organization, like my own, to be designated as a “Community Development Entity.” A CDE has the authority to raise funds to be used in Hillsdale from investors in return for tax credits. Although somewhat inefficient, this program is a fine way to encourage investment in low-income communities. As things stand today, nearly the entire city of Hillsdale is an eligible investment area. Acquiring the NMTC, along with other programs and partnerships, will allow for vast swathes of investment dollars from people passionate about Hillsdale to pour into downtown.

Areas highlighted red and yellow are eligible for NMTC investments. (Source: Novogradac NMTC Mapping Tool)

We are still several months out from pursuing large-scale construction. As with many projects of similar scope, this project will move slowly, slowly, then fast. Until then, these updates will come out at a slower pace than they have until now, perhaps once or twice a month rather than weekly. Eventually, once the project starts gaining speed, updates will commensurately pick up their pace.