New Markets Tax Credit News Briefs - July 2017
The CDFI Fund published May 26 an updated version of its calendar year (CY) 2017 New Markets Tax Credit Program Allocation Application Frequently Asked Questions. The supplemental guidance includes topics such as proposed financial product rates and terms, pipeline projects, track record of past investment activities and information on previous allocations. The updated document is in response to questions the CDFI Fund received during application round conference calls May 9 and 11. The updated FAQs document is available at www.newmarketscredits.com.
Ehrmann Commonwealth Dairy in Brattleboro, Vt., announced May 17 the completed new markets tax credit (NMTC) investment cycle. Ehrmann Commonwealth Dairy built its Greek yogurt processing facility, which increased demand for local milk by 30 million pounds a year. The 32,500-square-foot facility was built in 2010 and has grown from startup to a $100-million business. Because of the success, Ehrmann Commonwealth Dairy built a second facility in Casa Grande, Ariz., and announced plans for continued expansion of the Brattleboro facility. The NMTC funding was facilitated by CEI Capital Management LLC and Massachusetts Housing Investment Corporation.
The Community Development Financial Institutions (CDFI) Fund published May 25 a blog post on eligible uses of Capital Magnet Fund Awards. Eligible uses of Capital Magnet Fund award dollars include capitalizing an affordable housing fund, capitalizing a revolving loan fund, capitalizing an economic development activities fund, creating loan loss reserves, making risk-sharing loans and making loan guarantees. The CDFI Fund announced in April that it tentatively planned to open the fiscal year (FY) 2017 round of the Capital Magnet Fund in June, when up to $120 million in awards would be available.
Mascoma Community Development announced June 5 the closing of $5 million in NMTC financing for the redevelopment of an art-deco building in Jamestown, N.Y. The $25.7 million project by the National Comedy Center will provide a national attraction and cultural institution celebrating the art of comedy in the hometown of Lucille Ball. The building formerly served as the city’s train station and will now be a 35,000-square-foot entertainment facility with nine main zones and 70 attractions. A total of $24 million in NMTC allocation was provided by U.S. Bancorp Community Development Corporation, Empire State New Market Corporation and Empower Reinvestment Fund LLC. The facility is part of a $50 million redevelopment funded by public-private partnership, which has also been awarded approximately $9 million from New York State, Empire State Development and the I Love NY tourism campaign. The facility is under construction and is expected to open in spring 2018. The property is located in a severely distressed census tract where unemployment measured 24.1 percent in the 2010 census. A total of 27 new permanent jobs are expected to be created, as well as approximately 140 temporary construction jobs.
The Missoula, Mont., Food Bank officially opened its $6.6 million headquarters May 30. The new facility has a modern learning kitchen, a community meeting room with a video screen, a children’s center, a big indoor waiting room, large office spaces, a commercial kitchen area and storage. The headquarters occupies 22,500 square feet of space and two stories. The food bank will now have space to serve more people, reduce wait time in lines, as well as host nutritional classes for children and adults. The food bank was financed with $6.5 million NMTCs with the help of the Montana and Idaho Community Development Corporation and First Security Bank.