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New Markets Tax Credits News Briefs - August 2012

San Antonio Food Bank (SAFB) secured $27 million in new markets tax credit (NMTC) financing to help fund a $28 million expansion. The expansion will double the food bank’s capacity and enable it to increase the amount of food provided to families in need. The project will also double the size of SAFB’s current parking for nearly 2,000 volunteers and clients and help relocate the food bank’s five-acre farm to a more permanent space. The NMTC financing comes from a $14 million allocation by National New Markets Fund and a $13 million allocation by Texas Mezzanine Fund. U.S. Bancorp Community Development Corporation (USBCDC) served as the equity investor.

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USBCDC provided more than $2.8 million in NMTC equity to finance the acquisition and construction of a 52,000-square-foot office and fabrication facility for J.F. Ahern Company in Milwaukee, Wis. When completed in early 2013, the $10 million building will support approximately 190 employees and provide space for an additional 25 employees. The facility will be dedicated to fire extinguisher recharging and modular construction fabrication, and is expected to have a nearly $50 million economic impact on the region, according to projections. The NMTC transaction was structured in partnership with First-Ring Industrial Redevelopment Enterprise Inc. and the Redevelopment Authority of the City of Milwaukee. Ahern intends to further expand to 90,000 square feet at a later date.

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McCormack Baron Salazar and the Los Angeles County Metropolitan Transportation Authority celebrated the grand opening of the first phase of MacArthur Park Apartments in Los Angeles, Calif. The first phase of the project includes 90 affordable housing units, 15,000 square feet of retail, 100 parking spaces and bicycle parking. A total of 172 affordable housing units are planned for the two-phase development, which is located adjacent to a Metro station and one mile from downtown. The community is designed to serve as a model for other transit-oriented developments and to act as a catalyst for further development in the MacArthur Park neighborhood. The $44.8 million development was funded in part by Tax Credit Assistance Program funds; an NMTC allocation from MBS Urban Initiatives; and equity and debt provided by Goldman Sachs Urban Investment Group through the sale of low-income housing tax credits and NMTCs. Other financing sources include Bank of America, the California Department of Housing and Community Development, the Los Angeles Housing Department, Metro and the Community Redevelopment Agency of the City of Los Angeles. Construction of the development’s second phase is slated to begin in 2013.

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HUD officials attended the opening of First Choice Market, a full-service grocery store that will serve residents of Park DuValle in Louisville, Ky. The 20,000-square-foot store will anchor a new retail center in the neighborhood, which has been the subject of HOPE VI revitalization since 1994. The $4.4 million project was financed by a $3.2 million Community Development Block Grant-funded loan from the city and a $1.2 million NMTC equity commitment from USBCDC in partnership with Louisville Development Bancorp. Other financing partners include the U.S. Department of Health and Human Services and the Metropolitan Sewer District. The grocery store created more than 150 construction jobs and 40 permanent jobs.

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South Eastern Economic Development Corporation (SEED) received $50,000 from Rockland Trust Community Development Corporation to provide financial counseling to low-income businesses and individuals in Massachusetts and Rhode Island. The bank’s support will enable SEED to continue its group and one-on-one workshops and sessions. Rockland Trust provided the funds as part of its $50 million in NMTC authority.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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