New Markets Tax Credits News Briefs - March 2015

Sunday, March 1, 2015

The groundbreaking for the rehabilitation of the Historic Westside School in Las Vegas was Jan. 17. The project received $14 million in federal New Markets Tax Credits (NMTC) program funding. The Las Vegas Community Investment Corporation, which will serve as the city’s community development entity (CDE), will contribute $11.2 million in NMTCs, and U.S. Bancorp Community Development Corporation (USBCDC) will provide $3 million in NMTCs. The Historic Westside School is the first project initiated by the city of Las Vegas to receive federal NMTC funding. It was built in 1923 as the Las Vegas Grammar School. Rehabilitation plans include rehabilitating the school’s 1948 annex building to house the community-based KCEP radio station, as well as professional office and retail spaces. A portion of the building will also serve as community space. In addition, new fencing, landscaping, lighting and parking areas will be added.

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On Jan. 28, U.S. Bank and Sunrise Banks announced the closing on $3.1 million in tax credit equity financing for the renovation of Twin Cities Public Television in St. Paul, Minn. USBCDC, the community development subsidiary of U.S. Bank, invested equity raised from federal NMTCs. The city of St. Paul and Twin Cities Public Television also provided capital. The renovated facility will provide offices and build community space for Twin Cities Public Television, as well as a new ground-floor entrance and atrium. Renovation costs are expected to total $20 million, with a slated completion date of October.

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Montana Community Development Corporation (MontanaCDC) on Jan. 20 announced $11.4 million in NMTCs for the construction of a Red Lion Inn and Suites in Polson, Mont. USBCDC provided a tax credit equity investment and U.S. Bank provided a construction loan. The hotel will be built along with and attached to the MacKenzie River Pub and Grill. The hotel will comprise three stories and 80 rooms. The restaurant will create 42 new full-time jobs. The building will also include 3,000 square feet of meeting space made available to community groups, nonprofits and schools.

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On Jan. 9, Healthcare Community Development Group LLC (HCDG) announced $14.6 million in NMTCs to finance the expansion of the Phoenix Children’s Hospital. HCDG, a nationally certified community development entity, was the allocation aggregator that issued and leveraged financing. The $14.6 million was provided in several forms, with $8.4 million provided through Series A internal funds, $3.8 million in Series B NMTCs and a $2.4 million investment by the hospital. The expansion will create a 45,000-square-foot medical and surgical unit in existing space on the ninth floor for the provider of specialty pediatric services in inpatient, outpatient, emergency, trauma and urgent care. Construction is expected to be complete by December.

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Fry Foods, an Ohio-based company, announced its expansion into Ontario, Ore., Jan. 24. With the help of $19 million in NMTCs from state and federal sources, the producer of breaded and battered food purchased and will renovate an onion ring processing plant into a new production facility. Business Oregon contributed $8 million of the $19 million in NMTCs. Approximately 250 to 350 jobs will be created through the expansion. Financing was finalized Jan. 1.

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Northern Nevada Hopes announced Jan. 12 the groundbreaking of the Stacie Mathewson Community Wellness Center in Reno, Nev. The medical facility will be constructed with $5.5 million in federal and state NMTCs. Northern Nevada Hopes also raised $2.4 million in private donations. The remaining necessary funds will be covered through a long-term permanent loan. The Stacie Mathewson Community Wellness Center will have three stories, 37,000 square feet and will house 42 exam rooms, a wellness clinic and a pharmacy, as well as radiology and diagnostic labs. The new facility will create 38 new jobs. Construction, which is expected to cost $13 million, has a projected completion date of the end of the year.

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