A massive capital investment will infuse $40 million into Erie Opportunity Zones (OZ) that will help transform downtown Erie into an inclusive space where people will want to work, live, eat and play. 

Erie Insurance and The Erie Community Foundation (ECF) are partnering with Arctaris Impact Investors, LLC, a Boston-based national impact investor, to enable the investments in Erie.

The new program will be called Arctaris Erie.

Officials say most of the money will be invested in Erie Downtown Development Corporation (EDDC) shovel-ready projects and the rest in other mission related investments (MRI) within Erie County Opportunity Zones. 

“We’re thrilled that we’ve attracted an investor of Arctaris Impact’s caliber to Erie,” said Tim NeCastro, president and CEO of Erie Insurance. “This significant infusion of capital accelerates our work to revitalize Erie’s downtown and encourages other potential investors.”

Arctaris Impact focuses on revitalizing struggling cities with the aim of delivering above-market returns and positive social impact. 

Erie Insurance, ECF and EDDC are taking a collaborative approach to investing in Erie projects. Erie Insurance will invest up to $50 million in Arctaris Opportunity Zone Funds by the end of 2020. ECF has made a $5 million commitment to invest in MRI projects. Officials from both organizations say investing in Arctaris' Opportunity Zone Funds allows for the infusion of new capital investments in Erie's revitalization efforts at a higher level than either of them could invest independently. 

Successful Arctaris Impact programs in Washington, D.C., Maine, Baltimore, Michigan and Ohio will serve as models for Arctaris Erie. 

A representative of Erie Insurance will have voting rights on the Arctaris Investment Committee and a seat on the Community Advisory Committee. Both Erie Insurance and The Erie Community Foundation will have seats on the Arctaris Erie advisory board. Arctaris will serve as investment adviser and fund manager and will maintain at least one full-time employee in Erie.

Erie Insurance's investment in Arctaris will increase the company's OZ fund of $50 million to $75 million during the second half of 2020. Other Erie Insurance OZ investments include $6.5 million in the EDDC food hall project and $1.2 million in Whitethorn Games, a video game developer with offices in Erie.