Troy-based Flagstar Bank hopes to spur economic development within the city of Pontiac, announcing a $10 million investment into the city. A ceremony will be held on Monday, Sept. 19 with a formal announcement.
The investment comes almost a year since Flagstar bank said it would allocate funds to one of Pontiac’s oldest performance venues for renovations and rebranding as the Flagstar Strand Theatre for the Performing Arts. The venue is set to open this December.
The commitment will take place over a five-year period and will touch on several areas of investment.
In total, $5 million of the funds will be used for home ownership mortgages, to provide loans to veterans and to develop special products to address the appraisal gap in Pontiac. Another $2.5 million will go toward economic development and business attraction for both new and established small businesses. There will be a $1 million allocation toward financial capability, to work with the community on a data driven approach to assist lower income households in building assets and wealth. Lastly, $1.5 million will go toward the Flagstar Strand development, according to Beverly Meek, CRA Director for Flagstar. Meek said she believes this is a time for growth in the city of Pontiac.
“Our company is headquartered 10 minutes away from Pontiac, so this is a step for us to be involved in the revival that is right at our doorstep,” Meek said. “ There is a groundswell of activity happening and we want to make sure the residents have a voice.”
Representatives from the city, county and state will be in attendance for the announcement. Speakers and attendees include: Pontiac Mayor Deirdre Waterman; U.S Senator Gary Peters; Andrew Meisner, Oakland County treasurer; Patrick McPharlin, director of the Department of Insurance and Financial Services; Ron Borngesser, CEO of the Oakland Livingston Human Service Agency; Patricia Herndon, advocacy director of the Michigan Bankers Association and Sandro DiNello, CEO of Flagstar Bank.
“This is the right time. The momentum is going and we want to catch that momentum while the iron is hot,” Susan Bergesen, corporate communications specialist at Flagstar Bank said. “This was the perfect opportunity to use other catalysts for economic growth and so what we’re doing is growing on that initial investment in Flagstar Strand.”
Bergesen also stated that Flagstar is looking to bring other stakeholders into the picture.
“We want to collaborate with stakeholders across income levels to jointly spur economic development and attract business to the city. We also want to use this investment to leverage with other foundations and attract them to invest in the city,” Bergesen said. “This is a significant investment.”
