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To fund development of the Plaza and future community projects, JCNI has needed a unique and committed set of funding partners. This search for solutions that keep costs low and more money in the community has forged a new approach to financing community redevelopment.
 By leveraging our assets, we've succeeded in bringing a variety of partners to the table - non-profit and for-profit, corporate and civic, local and national - providing loans, grants, and tax incentives. For Market Creek Plaza, $4.5 million leveraged $23.5 million in investment.
The members of the ground-breaking, public-private partnership that supports Market Creek Plaza share one thing - a commitment to invest in what the residents have envisioned for the future of this community.
New Markets Tax Credit
 Clearinghouse CDFI refinanced the initial construction debt with a $15-million New Markets Tax Credit loan. Wells Fargo’s investment in Clearinghouse, the source of the NMTC loan, continued their on-going support of the Plaza. From the start, Wells Fargo provided up to $35 million in working lines of credit to fund construction of the project. The lines were low-interest, using Jacobs Family Foundation’s (JFF) stock portfolio as collateral. The Wells Fargo Foundation has also supported programs associated with the Plaza’s development.
Program Related Investments
Program-related investments (PRIs) have brought other low-cost funds to the project. PRIs allow foundations to make low-interest loans to projects that match their social mission. The Rockefeller Foundation and Annie E. Casey Foundation each made $1 million PRI's to the project. For Rockefeller, it was the first commercial real estate PRI in its 100-year history. The F.B. Heron Foundation and The Legler Benbough Foundation also supported the project each with a $500,000 PRI.
In addition, PRI's from JFF supported programs like patient-debt capital, a new loan product developed by California Southern Small Business Development Corporation (SBDC). These loans for the Plaza's entrepreneurs require interest-only payments for the first two years, then principal-plus-interest payments for the following five years.
Loan Innovations
In addition, PRI's from JFF supported programs like patient-debt capital, a new loan product developed by California Southern Small Business Development Corporation (SBDC). These loans for the Plaza's entrepreneurs require interest-only payments for the first two years, then principal-plus-interest payments for the following five years.
Grants
Several other foundations and corporations funded the Plaza with grants, from the public art projects to the micro-entrepreneur training program. They include The Legler Benbough Foundation, Sempra Energy, San Diego Neighborhood Funders' Family of Funds, the Ackermann Foundation, and the Irvine Foundation.
Tax Abatement
Finally, as the redevelopment agency for this area, the Southeastern Economic Development Corporation (SEDC) approved property tax reimbursements for the Plaza's pedestrian walkways, bridges, and thoroughfares. Ultimately, 60 percent of the funds spent for their construction will be returned to JCNI and used to support more work in the community.
Residents' commitment to developing not just a commercial center, but an arts, culture, and entertainment venue reflecting the many cultures of this community, resulted in a one-of-a-kind place. Financing the innovative project resulted in a one-of-a-kind partnership that challenges traditional philanthropy to do more for social good than make grants at arms length. At the same time, new resources are coming into this community.
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