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New Markets Tax Credit News Briefs - September 2016

The Community Development Financial Institutions (CDFI) Fund invited public comment July 29 regarding the New Markets Tax Credit Program Allocation Tracking System. The CDFI Fund requires each allocatee to use the electronic data collection and submission system to report on the information related to its receipt of a qualified equity investment (QEI). No changes are being proposed at this time. Comments are due by Sept. 27. 

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On July 15, Tax Advantage Group announced that Greenville New Markets Opportunity II (GNMO II), a community development entity (CDE) managed by the consulting firm and Greenville Local Development Corporation, awarded $73 million in new markets tax credit (NMTC) allocations to eight South Carolina developments. GNMO II’s portfolio is projected to support 1,815 jobs and serve 5,230 clients through its nonprofit investment. In addition, the CDE is expected to help create or redevelop nearly 930,000 square feet of new and improved commercial and industrial real estate. Legacy Charter School in Greenville received $13.7 million, Greenco Beverage Company in Greenville received $8.3 million, Limehouse Produce in North Charleston received $9 million, Sweet Street Desserts in Greenville received $10 million, TDC Cutting Tools in Seneca received $7 million, OTO Development/AC Hotel in Spartanburg received $10 million, Claussen Bakery building in Greenville received $5 million and Upward Star Center in Spartanburg received $10 million.

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The grand opening for the new Gerald Ignace Indian Health Center in Milwaukee was July 14. Construction for the health center’s new facility was funded with a $5.5 million in NMTC allocation from the Wisconsin Housing and Economic Development Authority (WHEDA). WHEDA also provided a participation loan of $3.4 million. The Gerald Ignace Indian Health Center is dedicated to addressing the health care needs for people living in an urban setting.

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On June 6, The PrivateBank, a provider of financial services, and its subsidiary, Midwest Industrial Redevelopment Fund, announced $2.5 million in financing to Alco Products LLC. A $50 million NMTC allocation in 2015 will aid the Detroit-based waterproofing and roofing production company increase production capacity by expanding the facility and creating nine full-time jobs. 

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The site of the former Lion Store a historic, 97-year-old building, underwent redevelopment, beginning in early July. The former department store in Milwaukee will be transformed in to 60 market-rate apartments and a new Milwaukee Public Library branch. The ground floor will become the library branch, while the upper floors will be the market-rate apartments. In addition, a one-story storage area built onto the northern end of the building will be converted into eight townhouse apartments. Financing includes a conventional loan from First Business Bank, state and federal historic restoration tax credits and NMTCs. The project cost will be $20 million and redevelopment is expected to be complete in July 2017.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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