New Markets Tax Credits News Briefs - March 2011

Tuesday, March 1, 2011

Imagine Downtown Inc. (IDI) provided $25 million in NMTC financing for the Georgia Aquarium's new AT&T Dolphin Tales gallery in Atlanta, Ga. The $120 million expansion includes an 84,000-square-foot dolphin exhibit and theater with care and feeding areas for the marine mammals. IDI said the funding will help the aquarium recapitalize and continue with other planned expansion and rehabilitation efforts. SunTrust Community Capital contributed an additional $15 million in NMTCs to the project, which is expected to generate 320 permanent operational jobs and 700 construction jobs. The new exhibit is slated to open in early April.

***

The New Markets Tax Credit Coalition (NMTCC) appointed Annie Donovan its new president. Donovan, NCB Capital Impact's chief operating officer, has 25 years of community and cooperative development experience. In addition to serving as NMTCC's president, she sits on the advisory boards and committees of organizations including the Community Reinvestment Fund, Housing Partnership Network, CoopMetrics Inc. and Coastal Enterprises. Donovan has also been recognized as an Honored Cooperator by the National Cooperative Business Association.

***

Knightsbridge Realty Capital Inc. arranged nearly $3 million in financing to renovate a retail center in Anaheim, Calif. The transaction includes a $2.2 million first trust deed loan provided by a regional bank and supplemented with $0.7 million in NMTC proceeds from CT/KDF Community Development Partners LLC. Knightsbridge said the deal accomplishes President Obama's Healthy Food Financing Initiative goals.

***

The Reinvestment Fund (TRF) provided NMTC financing to construct a new Homewood Suites hotel in Philadelphia, Pa. Part of the Hilton hotel brand, the 10-story all-suite hotel will cater to extended-stay guests. TRF also supplied a $1.6 million energy loan, which was funded by the Pennsylvania Green Energy Loan Fund and Energy Works. The building is designed and will be constructed to use 25 percent less energy than permitted under the current building energy code. Both TRF and the Philadelphia Industrial Development Corporation (PIDC) contributed NMTCs to the $45.1 million project, which is expected to create 589 construction jobs and 34 permanent hospitality jobs. The hotel is slated for completion in the spring of 2012.

***

The Michigan Magnet Fund (MMF) made a $10 million NMTC investment in Verso Paper Corporation's $45 million renewable energy project in Quinnessec, CBS Detroit reported. The investment will preserve 475 jobs at Verso and create approximately 50 new jobs with small businesses that will provide biomass for the plant. Renewable biomass sources will supply as much as 95 percent of the project's energy needs. In addition to MMF's $10 million investment, Local Initiative Support Corporation and CapFund New Markets LLC contributed $17 million and $5 million, respectively, for a $32 million total qualified equity investment. JPMorgan Chase provided nearly $9 million in NMTC equity.

***

The National Development Council (NDC) announced that the White House recognized one of its NMTC investments, the Wing Luke Museum of the Asian Pacific American Experience, with a national award for engaging youth in the arts and humanities. Youth CAN, the museum's afterschool program, was one of 15 programs in the country to receive the 2010 National Arts and Humanities Youth Program Award, the highest honor for afterschool arts and humanities programs. In 2003, NDC provided NMTC and historic tax credit equity to help convert a 1912 hotel that had served as a rooming house for the city's immigrants to the culture, art and history museum.

Journal Category: