Arctaris Impact Investors, LLC has announced an investment into Erie’s Opportunity Zones.
Arctaris has announced a $9.3 million investment into the Flagship City Food Hall & Market, under development by the EDDC.
In June 2020, the Arctaris Erie program was founded with Arctaris making a total commitment of $40
million to invest in Erie’s revitalization, under a program partnership with the Erie Community
Foundation (ECF), which provided $5 million of First Loss Capital, and Erie Insurance, which invested
$58 million in Opportunity Zone capital.
Nearly all the funds will be invested in projects led by the Erie Downtown Development Corporation (EDDC).
The Flagship City Food Hall is the first in a series of projects Arctaris plans to fund under its Arctaris Erie program.
For this project, Arctaris provided $9.3 million, Erie Insurance’s Opportunity Fund provided $6.5 million, and the Erie Downtown Equity Fund (EDEF), a locally raised private equity fund, provided $3.4 million with other potential investor funds being finalized.
“The Flagship City Market and Food Hall demonstrates what can be accomplished when public, philanthropic and private sector partners work together to solve a city’s greatest challenges,” said Jonathan Tower, founder and managing partner of Arctaris. “This project puts private capital to work by investing in blighted real estate, equipment and operating businesses which will bring local, affordable produce to a USDA-designated food desert and jobs to the most vulnerable workers – women, minorities and refugees – who are still recovering from the negative economic effects of COVID-19.”
Erie has 8 designated Opportunity Zones.
In 2017, community leaders formed EDDC and EDEF, which were modeled after other successful urban redevelopment initiatives. Over the past four years, EDDC has moved forward with strong local support from Erie’s largest employers, philanthropic organizations and local government.
EDDC has worked with EDEF to raise capital to support its work in downtown Erie.
“This project is a great example of private investment addressing so many of a community’s challenges,
including blight remediation, food insecurity, and economic opportunities for historically disadvantaged
communities,” said John Persinger, CEO of the EDDC. “This work would not be possible without the
financial support and investments from Arctaris, Erie Insurance and the EDEF.”
“Erie Insurance is proud to partner with Arctaris and the Erie Downtown Equity Fund to help bring this
transformational project one step closer to the finish line,” said Tim NeCastro, president and CEO of Erie
Insurance. “The public market and food hall will be true assets to the heart of our downtown and are
sure to have positive economic and social impacts on the city, its residents and our entire region. This
project is yet another example of how community collaboration can bring about exciting and meaningful
change for Erie.”
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