Sign Up For Novogradac Industry Alert Emails

New Markets Tax Credits News Briefs - January 2010

Citi announced on November 23 that it would provide $15 million in financing for the renovation of Bedford Stuyvesant Restoration Corporation’s (BSRC’s) Restoration Plaza in Brooklyn, N.Y. Citi’s financing consists of a $4 million new markets tax credit (NMTC) investment and an $11.4 million short-term bridge loan. Citi donated an additional $200,000 to the Centers for Financial Empowerment in partnership with BSRC. Restoration Plaza functions as a town square and destination for education, commerce and culture in Central Brooklyn. The renovation is a multiphase capital improvement to increase BSRC’s program capacity. Renovations are expected to stimulate economic growth in the Bedford-Stuyvesant community by modernizing the facility, allowing new and existing tenants to add jobs.

***

The Urban Development Fund LLC (UDF) provided $21.5 million in financing for the development and construction of the Embassy Suites Riverwalk in San Antonio, Texas. The investment includes a $17 million senior loan, a $2.25 million junior loan and a $2.25 million equity investment in the project. UDF used NMTCs to provide the construction loans. The 16-floor hotel will feature 285 rooms, two levels of underground parking, a 7,000-square-foot grand atrium and 7,500-square-foot grand ballroom. The hotel is located in a census tract with a poverty rate of 37.5 percent and an unemployment rate of 17 percent and it is expected to create 255 full-time jobs and 425 temporary construction jobs. The new Embassy Suites will be the anchor for redevelopment of the Houston Street area of San Antonio. UDF is an affiliate of Aries Capital, a national full-service mortgage banking firm, and has received NMTCs of $257.5 million.

***

Travois New Markets helped the Bois Forte Community Redevelopment Corporation (BFCRC) of Nett Lake, Minn., an entity of the Bois Forte Band of Chippewa, secure NMTC funding for its new community and government services facility. The service center will replace one destroyed by fire in the spring of 2009. Wells Fargo provided a $3.7 million NMTC investment and $9.1 million in additional construction financing to build and manage the 48,852-square-foot facility. BFCDC served as the transaction’s leveraged lender. The facility, which is under construction, will provide community meeting space, Bois Forte Tribal Government offices and a financial services center, such as a credit union or branch bank. It is expected that the facility will provide 139 construction jobs and 70 permanent jobs. Ground was broken on the service center in August 2009 and completion is scheduled for August 2010.

***

Wells Fargo & Company announced on December 3 that it has provided $12.6 million in NMTC financing to St. Mary’s Food Bank Alliance, a non-sectarian, not-for-profit organization that gathers and distributes food to sites that serve the hungry. Proceeds of the NMTC financing will be used to expand St. Mary’s Food Bank’s operations in Arizona, including the acquisition of a new building and upgrades and renovations to existing facilities. St. Mary’s Food Bank Alliance serves more than 1 million clients annually and expects that number to grow by 15 percent to 20 percent once the upgrades are completed. The NMTC financing will also fund St. Mary’s Kids Café and Community Kitchen. Kids Café helps alleviate childhood hunger by providing nutritious meals in a safe, accessible and nurturing environment to at-risk children. The Community Kitchen program teaches students foodservice skills through hands-on cooking. Staff members also help with job placement and continued support for a 12-month period following graduation, providing guidance for career advancement.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

Learn more about Novogradac's expertise and many services