New Markets Tax Credits News Briefs - February 2015

Sunday, February 1, 2015

On Dec. 9, 2014, Enterprise Community Investment Inc. and Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc., announced the closing of a $51.4 million transaction for Project Atlanta, a large-scale food processing and distribution center in Clayton County, Georgia. Financing included $40.7 million in new markets tax credit (NMTC) allocations from several community development entities (CDEs), and $8 million from Enterprise Community Investment, Inc. Funding also included a $27.5 million construction and development loan, as well as a NMTC investment, provided by U.S. Bank. Another $5 million was funded by the state of Georgia and Clayton County incentives, job creation tax credits, infrastructure contributions and/or fee waivers. Project Atlantic, which is being developed by Castellini Group of Companies, will occupy an 180,000-square-foot facility and will create more than 400 construction jobs and 300 permanent jobs in a community with an unemployment rate of 15.7 percent and poverty rate of 22.4 percent. Project Atlanta is scheduled to open in October.

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U.S. Bank announced the closing of $4.8 million in NMTC equity Dec. 22, 2014, for the renovation of the historic Westside School in Las Vegas. The Westside School was the city’s first racially integrated public school. Renovation costs will total $15 million and will provide a space for retailers, offices and a café. The site will also retain a current occupant, KCEP radio. Also planned for Westside School is new landscaping and space for public art exhibitions. Construction is expected to create 64 construction jobs and 24 permanent jobs. Completion is slated for June 2016.

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CapFund New Markets, subsidiary of Great Lakes Capital Fund, announced Dec. 10, 2014, the closing of $9 million in federal NMTCs for Haven, a domestic abuse shelter and counseling center in Pontiac, Mich. Haven is a comprehensive treatment and prevention center. Haven partnered with CapFund New Markets to help finance the $11.5 million development of the new shelter. Development plans include a 36,000-square-foot facility that will also be used as a space to educate and prepare professionals and others on best practice interventions and prevention methods. More than 50 construction jobs and two additional permanent jobs will be created once the shelter opens in November.

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On Dec. 15, 2014, the Local Initiatives Support Corporation (LISC) released the housing study, “Building Sustainable Communities: Initial Research Results.” Analysis was conducted on 63 neighborhoods that LISC invested in and there are specifically four case studies in the report. The report found that families in neighborhoods with nonprofit investment and revitalization efforts fared better than those families that were not located in such neighborhoods. The efforts studied included more affordable housing, safety, education, employment and other basic services. “Building Sustainable Communities: Initial Results” is the first in a series of analyses that LISC will release to measure how investment impacts the quality of life. The report is available at www.lisc.org.

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Wangard Partners Inc. announced Dec. 17, 2014, that final approval was given by the Milwaukee Common Council to move forward with the development of Freshwater Plaza in Walker’s Point. Financing for the $48 million, mixed-use property includes $10.8 million in federal NMTCs, a $27.9 million bank loan, $3.2 million in equity and a $1 million state grant. The $4.8 million in city funds will be paid back by Freshwater Plaza’s property taxes. Freshwater Plaza will feature a four-story, 72-unit apartment complex with street-level retail space. In addition, there will be a 42,000-square-foot Cermak Food Market and a future office building with a parking structure. Construction is expected to begin this spring, with a completion date of spring 2016.

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