New Markets Tax Credit News Briefs – February 2019

Friday, February 8, 2019

The Community Development Financial Institutions Fund released a summary report and data file Dec. 18, 2018, on new markets tax credit (NMTC) investments from fiscal year (FY) 2003-2016. Through FY 2016, NMTC allocatees disbursed $44.4 billion in qualified equity investment proceeds toward more than 5,300 NMTC investments. Of those NMTC investments, 57.8 percent were non-real estate qualified active low-income community businesses (QALICBs) or operating businesses, 40.9 percent were real estate QALICBs and 1.4 percent were beneficiaries of loans or investments made by community development entities (CDEs) through other unrelated CDEs without allocations. The report and data file are available at www.newmarketstaxcredits.com.

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Passport Health Plan, a nonprofit care organization, announced it received $24.4 million in NMTC allocation Dec. 19, 2018, for the development of the company’s new headquarters and a health and well-being campus in Louisville, Ky. Three CDEs–National Development Council, Reinvestment Fund and Telesis Corporation–provided the NMTC allocation. PNC Bank will serve as the investor for the $8.6 million in NMTC equity.

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The Save-A-Lot grocery chain will receive new headquarters in St. Ann, Mo., thanks to a $30 million NMTC allocation announced in early December 2018. Funding for the $106 million development included $7.4 million in Missouri brownfield cleanup tax credits and $33 million in tax-increment financing from the city. The headquarters will move to the former Northwest Plaza mall. Save-A-Lot’s new 162,000-square-foot space will house a test kitchen and blind taste-testing booths, as well as a miniature mock-up of a Save-A-Lot store to create marketing materials and test new equipment and product layout concepts.

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TD Community Development Corporation, a wholly owned subsidiary of TD Bank NA, announced Dec. 18, 2018, its $15 million NMTC allocation for the $50 million expansion of minority-owned packaging company in Dublin, Va. Phoenix Packaging Operations LLC is modifying its existing manufacturing plant and building a 250,000-square-foot expansion. Phoenix Packaging also will invest in machinery, equipment, and training and development programs. A total of 145 new jobs are expected to be created, along with the retention of approximately 400 local positions.

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