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New Markets Tax Credit News Briefs - October 2017
Illinois Senate Bill 652 was enrolled Aug. 25. The bill amends the state’s New Markets Development program, increasing the annual cap by $30 million to $50 million. The bill also provides that, to be considered a “qualified equity investment,” 100 percent of the cash purchase price of the investment must be used by the issuer to make qualified low-income community investments in Illinois. Previously, the requirement was 85 percent. In addition, S.B. 625 requires qualified community development entities to submit an annual job creation report and provides that the application for certification as a qualified community development entity must include the amount of qualified equity investment authority the applicant agrees to designate as a federal qualified equity investment under Section 45D of the Internal Revenue Code. Senate Bill 625 is available at www.newmarketscredits.com.
Cinnaire announced July 11 an $8 million new markets tax credit (NMTC) investment for the redevelopment of the Saginaw News building to create the Saginaw Valley Rehabilitation Center (SVRC) Marketplace in Saginaw, Mich. The 100,000-square-foot, mixed-use facility will include a year-round farmers market, kitchen incubator, child care center, community development financial institution credit union, business incubator and retail and office space. Redevelopment costs will be $21 million. In addition, Cinnaire announced Aug. 10 the $11.5 million NMTC investment for the construction of a 350,000-square-foot manufacturing facility for EJ Group Inc. in Elmira, Mich.
Stonehenge Capital, in partnership with McCormack Baron Salazar and SunTrust Community Capital, announced July 6 a combined $23 million in NMTC allocation for the construction of a 164,000-square-foot commercial truck center and technician training facility in Memphis, Tenn. Stonehenge Capital is providing $10 million, McCormack Baron Salazar is providing $8 million and SunTrust Community Capital is providing $5 million. The development will include a full-service body shop, retail store and distribution center. There will also be an expanded technician training facility. The project is expected to provide 205 new full-time. Construction is expected to be completed in December.
CrescentCare, a federally qualified health care center in New Orleans, broke ground Aug. 15 on a new 65,000-square-foot campus health care facility that will combine four of its service sites into one comprehensive campus. The new health center is expected to serve more than 9,000 people and will offer primary medical care, dentistry, pediatrics, HIV counseling and testing, case management, and behavioral health services. The facility is scheduled to open in early 2019. Primary Care Development Corporation provided a $10 million loan and a $21 million NMTC investment.
The Finance Authority of Maine approved in late July $12.7 million in tax credits through the Maine New Markets Capital Investment program for the expansion of Rumford mill. Mill owner Catalyst Paper announced plans for the expansion of its mill to include a new tissue paper machine and add 62 new jobs. The mill, founded in 1901, is located in Oxford County, Maine. Catalyst Paper plans an upgrade of the entire mill by substituting high-value tissue production for low-value pulp production, and will have a multiyear agreement with a partner to sell and distribute tissue made at the mill. Production is scheduled to start in 2020.