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$28.5M Kresge guarantee supports build out of final phase of transformation on Marygrove campus

Detroit, Social Investment Practice

Commitment backs renovations at Madame Cadillac Hall, new home of U-M Ann Arbor education degree program

DETROIT, Mich. — University of Michigan students are living and learning in Detroit again on the Marygrove educational campus, thanks in part to a new $28.5M guarantee from The Kresge Foundation.

The commitment supports funding the renovation of the final portion of the P-20 campus plan, the Florent Gillet Residence Hall and Madam Cadillac Hall. This project houses the new University of Michigan Bachelor of Arts degree in education and includes residential dormitory space and instructional space.

The total project is expected to cost approximately $60 million and includes New Market Tax Credits, a form of federal subsidy for developments in low-income census tracts, and Federal Rehabilitation Tax Credit (HTCs), a form of federal subsidy designed to offset the cost of rehabilitating historic buildings. PNC Bank serves as the tax credit investor for both.

A philanthropic guarantee is an impact investing tool that removes risk from a transaction, allowing traditional investors like banks to put their capital on the line for projects that would otherwise be overlooked.

“Kresge’s guarantee allows the important work transforming the former Marygrove College site (now overseen by the Marygrove Conservancy) to continue uninterrupted,” said Aaron Seybert, managing director, Social Investment Practice, The Kresge Foundation. “The campus has major momentum on its side and offers something unique to both the city of Detroit and in the nation. No other private college has made a transition like this in the face of financial pressure to preserve its presence in the community while opening new opportunity pathways to serve students of all ages.”

The University of Michigan Marsal Family School of Education is a partner in this work, investing in the renovation and equipping of these spaces. The school leases facilities from the Marygrove Conservancy.

Learning, Equity, & Problem-Solving for the Public Good (LEAPS) is a first-of-its kind Bachelor of Arts degree at the Marsal School. LEAPS students have a living-learning experience in Detroit and Ann Arbor during their first year and remain engaged with Detroit communities, businesses, and nonprofits throughout their four-year degree program. Students learn how to support people to work together effectively to create change. By developing strong collaboration, communication, and leadership skills, LEAPS students become “learning leaders” who know how to partner with peers, communities, and organizations throughout their careers.

“It’s an exciting moment for our community to welcome University of Michigan students back to its hometown of Detroit,” said Wendy Lewis Jackson, managing director, Detroit Program, The Kresge Foundation. “These students will get all of the benefits of a world-class education rooted in a Detroit experience.”

Through coursework and experiential learning opportunities, students develop an understanding of social structures and histories related to race, ethnicity, gender, language, ability, and nationality. As trailblazers in this groundbreaking educational approach, LEAPS students are uniquely positioned to make a lasting impact in their chosen professions, said Elizabeth Birr Moje, dean of the University of Michigan Marsal Family School of Education.

“LEAPS blends the world-changing capabilities of a leading public research university with community-based learning on the beautiful Marygrove campus in Detroit,” Moje said. “During the first year, students live and learn together in Detroit as a cohort before defining individualized concentrations toward future careers. It will be enormously exciting to see this first cohort launch this fall.” Twenty-eight students begin their college experience on the campus this fall.

LEAPS students will enjoy a vibrant community that has grown each year since the 2019 launch of the Detroit P-20 Partnership. This public-private partnership—featuring educational opportunities from prenatal to pre-K, kindergarten through grade 12, and college and workforce development support—demonstrates a new model for urban revitalization that centers education at the core of community thriving.

The Marygrove Early Education Center opened in Sept. 2021 with 144 children from birth to age five; it is now at full capacity. The School at Marygrove opened in September 2019 with an inaugural class of 9th grade students. A new grade has been added each year, and The School at Marygrove celebrated its first graduating class in 2023. The elementary school opened in fall 2022 initially with kindergarten, first, and second grades, creating a streamlined experience for children and families from early childhood through K-12. At full capacity, The School at Marygrove will serve approximately 1,000 students.

The Marygrove Conservancy aims to preserve the legacy of Marygrove College through stewardship of a campus designed to be an educational, economic, and civic anchor in the Livernois-McNichols neighborhood. In addition to managing the cradle-to-career partnership, the Marygrove Conservancy is developing a master plan that activates campus facilities, builds a supportive ecosystem for startups and nonprofits and increases capacity for nonprofit leaders and entrepreneurs in the community.