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New Markets Tax Credits News Briefs - February 2013

U.S. Bancorp Community Development Corporation (USBCDC) announced the grand opening of Northgate Gonzalez Markets in Inglewood, Calif. The $7.6 million supermarket received more than $2.5 million in new markets tax credit (NMTC) equity from USBCDC and a $4 million term loan from NCB Capital Impact and The California Endowment. The market will serve the community’s more than 105,000 residents and is part of a family-owned chain that has 34 stores in Los Angeles, Orange and San Diego counties. Northgate Gonzalez Market in Inglewood will feature a bakery, a tortilleria and a Mexican kitchen in addition to grocery, meat, produce, deli and dairy sections.

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Travois New Markets recently provided $11.5 million in NMTCs and Indion Ventures invested more than $3 million in NMTCs for an improved dental care facility in Wisconsin. The Peter Christensen Dental Campus in the Lac du Flambeau Band of Lake Superior Chippewa will have an increased capacity of 20 dental chairs, an in-house lab and state-of-the-art equipment. The property will also offer space for a dental assistant/hygienist school through partnerships with Nicolet College and Marquette University. The facility is set to open this spring and will serve more than 700 households.

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Wells Fargo provided $2.7 million in NMTC equity for a new $9 million health and wellness center in Guadalupe, Ariz. The center will provide health services, job training, education and community outreach to Pascua Yaqui tribal members. Travois New Markets dedicated $9 million of its $70 million NMTC allocation to the project, which is expected to create 72 construction jobs and 10 permanent jobs. The 36,700-square-foot center is scheduled to be completed fall 2013.

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A commercial building in downtown Helena, Mont. secured NMTCs for its $7.6 million construction through the Montana Community Development Corporation and American Federal Savings Bank. The 32,000-square-foot, three-story building at 900 Last Chance Gulch will house law, insurance and dental offices. The project is expected to create 25 construction jobs and 70 permanent jobs. The building is the fourth development in Helena to be financed by NMTCs and is expected to be completed by June.

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Tammye Treviño, administrator for the U.S. Department of Agriculture’s Housing and Community Facilities (CF) programs, wrote to state rural development directors regarding leverage of the NMTC program with the CF loan programs. According to the letter, a CF direct loan may be eligible to participate with a NMTC program if a community development entity (CDE) provides construction financing and if the CF direct loan is used to take out the construction financing. A CDE can become the holder/participating lender of a guarantee through sale of the loan note guarantee, purchase of a participation in the loan or purchase of the loan note guarantee and participation in the non-guaranteed portion of the loan.

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The Witte Museum in San Antonio, Texas received $2.1 million in NMTCs for the construction of the Witte Research & Collections Center east wing. The National Development Council and JPMorgan Chase raised $11 million in financing for the project. Only 1 percent of the museum’s 300,000 historical artifacts are currently on display, due to lack of permanent space. The Witte Research & Collections Center will provide enough space to make 40 percent of the collection visible. The new wing will include a library and archives, a visitor lobby, research rooms, an archivist’s processing area and, eventually, a conservation lab. Construction is scheduled for completion in April.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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