The MCW Finance and Land Assembly Committee has developed an investment fund to provide bridge financing for key development projects in the Midtown Corridor.

One of the initial projects to demonstrate the redevelopment potential of the Midtown Corridor is the Urban Village, a new 3 block, 220 unit housing project adjacent to the Midtown Greenway. The project has broad support and diverse sources of funding. The City of Minneapolis has approved a redevelopment district for this project, and will provide tax increment financing for the land assembly activities, including acquisition, relocation of existing property owners, demolition and site improvements.

Although the project will incur these land assembly expenses up front, the proceeds from the tax increment will not be available until the project is constructed and the redeveloped property begins to generate increased property taxes. While the City of Minneapolis will ultimately issue bonds to be repaid with the tax increment proceeds, it will not undertake to do so until the project is under construction. Hence, there is a critical need for "bridge" financing to address the early cash needs that will ultimately be funded through tax increment financing. The MCW Capital Investment Fund responds to this need.

The MCW Partnership intends that this investment fund model developed through the Urban Village offering be replicated for subsequent projects in the Midtown Corridor. The MCW Finance and Land Assembly Committee will carefully evaluate the real estate market potential of each project.