New Markets Tax Credits News Briefs - February 2011

Tuesday, February 1, 2011

Enterprise Community Investment and Citi Community Capital closed on a combined $25 million new markets tax credit (NMTC) transaction to finance the construction of a new facility for the Whittier Street Health Center in Boston, Mass. Enterprise said the new 78,900-square-foot facility, which will be located near Whittier's existing clinic in Boston's Roxbury neighborhood, will double the size of the health center's operations and expand its services, including its urgent care capacity. The facility will be built to meet the U.S. Green Building Council's LEED Silver standard and will contain rental space for complementary health–care providers, including the Dana-Farber Cancer Institute, Whittier Pharmacy and a physical therapy office. Whittier received $12 million in American Recovery and Reinvestment Act facilities program funding – the largest award amount available, according to Enterprise. In addition to 177 construction jobs, the project is expected to create 50 permanent full-time jobs, 35 of which will be targeted to low-income residents. Enterprise contributed $15 million of its NMTC allocation and Citi, which also served as the NMTC equity investor, supplied $10 million in NMTCs. Boston Community Capital and Boston Private Bank provided debt financing. Construction on the new clinic is scheduled for completion by 2012.

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Ecotrust Community Development Entity (CDE) announced that in 2010 it had allocated more than $60 million in NMTCs to small businesses in the Northwest's struggling timber communities. The company says its investments will result in the creation or retention of more than 800 jobs. Last year's recipients of Ecotrust CDE's NMTC financing were NewWood Corporation, which is reopening a manufacturing plant in Elma, Wash.; Ochoco Lumber Company, which used the proceeds to refinance debt, expand sawmill operations and construct a new wood fuel mill in John Day, Ore.; ZeaChem Applied Technology, which will construct a $40 million pilot facility in Boardman, Ore. to convert wood waste into ethyl acetate to produce products such as ethanol; and Garibaldi Forest Management, which used the proceeds to acquire forest land and initiate forest restoration activities including invasive species removal and habitat enhancement.

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Waveland Community Development (WCD) allocated $10 million in NMTCs to the Anson Mills Building Downtown development in El Paso, Texas. The company said the 12-story structure, which has been vacant for several years, was among the tallest concrete buildings in the country upon its construction in 1911. The building is part of local businessman Paul Foster's $67 million redevelopment project to join restaurants, retail and business in a planned Mills Plaza District. The project is located in a census tract with a poverty rate of more than 50 percent and an unemployment rate of more than 20 percent. WCD also made a recent $24.2 million NMTC investment in Financial District Properties/Kone Center in Moline, Ill. Kone Corporation, a leader in the elevator and escalator industry, plans to locate its headquarters in the new Kone Building. WCD expects the development to produce more than 400 jobs.

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BizCapital, Advantage Capital Partners' small business lending division, provided a $1.6 million Small Business Administration (SBA) 7(a) loan to S&N Airoflo Inc., a wastewater treatment equipment manufacturer. S&N Airoflo plans to use the loan to refinance debt, support the company's continued growth and retain 18 employees in a low-income community. Based in Greenwood, Miss., the company manufactures, installs and maintains energy-efficient wastewater treatment equipment for customers in 40 states. BizCapital made the investment in S&N Airoflo in connection with the federal NMTC program and the Mississippi new markets development program.

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A historic retail and office building in Asbury Park, N.J. is undergoing renovations that include the addition of 31 rental units, the Asbury Park Press reported. The 550 Cookman Avenue building's $11.2 million redevelopment is being funded with $9.1 million in NMTC financing from Capital One and $2.1 million in equity contributed by the developer, Sackman Enterprises. Retail space will be on the street level and the developer plans to add a third floor for one- and two-bedroom apartments.

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