New Markets Tax Credits News Briefs - December 2015

Tuesday, December 1, 2015

U.S. Bank announced Oct. 13 a $7.2 million new markets tax credit (NMTC) equity investment for the construction of Freshwater Plaza. The 110,000-square-foot plaza will be the home of a Cermak Fresh Market grocery store, street-level retail and 76 apartments in the Walker’s Point neighborhood of Milwaukee. Of the 76 apartments, 20 percent will be reserved for lower-income tenants. The development will be situated on 8 acres and construction begins this fall. Freshwater Plaza is expected to create 320 construction jobs and 180 permanent jobs. The mixed-use development will be built in four phases and total cost is estimated at $47.7 million. Financing also includes an additional $10.8 million in federal NMTCs and the city of Milwaukee is providing tax-increment financing, while the state of Wisconsin provided a Brownfield Redevelopment program grant. Construction is expected to be complete by the end of 2016.

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The Woda Group Inc. announced Oct. 1 the $13 million investment in the construction of 70 affordable loft apartments in Wheeling, W.Va. The former Boury Warehouse will be converted into the Boury Lofts and will include a mix of one- and two-bedroom units with the help of federal historic tax credits (HTCs) and NMTCs. The Regional Economic Development Partnership will master-lease the ground floor of the nearly 87,000-square-foot building as player housing for the Wheeling Nailers, an ice hockey team. In addition, more than 60 units on the second through sixth floors will be available to the public. The Boury Lofts are expected to be ready for occupancy by late 2016 or early 2017. Amenities will include a fitness center, TV lounges and a coffee lounge.

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On Oct. 7, the Florida Community Loan Fund (FCLF) announced it provided $8.5 million in federal NMTCs and $6.4 million in state NMTCs that will allow Central Florida Health Care (CFHC) to purchase and renovate four locations throughout the state. The four buildings, totaling 48,000 square feet, will allow CFHC to provide medical, dental, lab and X-ray services for rural low-income residents, as well as nutrition and wellness education.

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Rooms To Go, an independent furniture company, held a ribbon-cutting ceremony Oct. 17 for its new Super Center facility in Dunn, N.C. Development moved forward with $30 million in NMTC financing from CAHEC New Markets, SunTrust and CityScape. The approximately 1.45 million-square-foot facility is located on 120 acres and is home to the new Rooms To Go showroom, a Rooms To Go Kids/Teens showroom, a Rooms To Go Outlet Center and a distribution center. The facility is expected to create approximately 400 new jobs for area residents.

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On Oct. 9, the Great Lakes Capital Fund (GLCF), a nonprofit real estate financial institution, officially changed its name and rebranded to Cinnaire Corporation. Mark McDaniel, president and chief executive officer for Cinnaire, said in a statement that the organization has always focused on collaborating with its partners to advance communities and as a result of those partnerships, the business has grown significantly in the past 20 years. This growth includes entering into new markets along the East Coast.

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On Sept. 14, the Community Development Financial Institutions (CDFI) Fund awarded $202 million in grants and loans to 195 CDFIs. The awards were given in the most recent round by the CDFI Fund and the Native American CDFI Assistance program (NACA program). This award represents 20 years for the CDFI Fund and the CDFI program. Since its inception in 1996, the CDFI Fund has awarded more than $1.5 billion to more than 950 CDFIs. A total of 60 applications were received requesting more than $37.5 million for the fiscal year (YF) 2015 round. In addition, the NACA program awarded $19.6 million in financial assistance and technical assistance to 43 organizations. The FY 2016 round of the programs are expected to open in early 2016. Additional information about the FY 2015 rounds of the CDFI and NACA programs is available at www.cdfifund.gov.

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