Sign Up For Novogradac Industry Alert Emails

New Markets Tax Credits News Briefs - March 2016

National New Markets Fund LLC announced Jan. 7 the closing of $24 million in new markets tax credit (NMTC) financing for the construction of a new manufacturing plant and corporate headquarters for Prairie Dog Pet Products. In addition, JP Morgan is investing $8 million in equity. The development will be located in Abilene, Texas, and will transform an unused 100,000 square-foot industrial building into a state-of-the-art facility. Prairie Dog Pet Products will use the NMTC allocation to acquire property, expand the existing facility and purchase equipment needed for manufacturing. Construction is slated for completion by this spring. Once complete, the development will support 215 full-time employees.

***

Pennsylvania Gov. Tom Wolf announced Jan. 6 the closing of Cornerstone Group’s (CCG) $7 million NMTC financing transaction that will fund the construction of Shoppes at Wissinoming in Philadelphia. The 110,000-square-foot, $29 million shopping center will include a Shoprite Supermarket, plus space for retail stores and restaurants. Shoppes at Wissinoming is expected to support 250 full-time construction jobs and create 300 permanent, full-time jobs.

***

Cinnaire and The Arc of Indiana celebrated the grand opening of Erskine Green Training Institute & Teaching Hotel in Muncie, Ind., Jan. 11. Cinnaire invested $11 million in NMTCs to finance the institute, which is a hospitality and health care training facility for individuals with disabilities. The institute will train an estimated 200 people from around Indiana each year in any aspect of hotel and restaurant operations that they are interested in, plus six areas of health care.

***

On Jan. 12, CEI Capital Management LLC invested $20 million in NMTC financing to help Premium Peanut, a grower-owned peanut processor, expand its operations in Douglas, Ga. SunTrust Bank provided an additional $3 million in NMTCs. Premium Peanut will use the financing to construct a shelling facility that will benefit 225 member farms in a cooperative-like arrangement. The plant is expected to create approximately 100 direct jobs and 30 indirect jobs at the storage facilities.

***

Lori Chatman, president of Enterprise Community Loan Fund, was appointed chairwoman of the Opportunity Finance Network (OFN) board of directors Jan. 13. In her role as chairwoman, Chatman will help support OFN’s mission to lead the community development financial institutions (CDFIs) industry to invest in opportunities that benefit low-income, low-wealth and other disadvantaged communities across America.

***

Local Initiatives Support Corporation (LISC) announced Jan. 13 the investment of $160,000 from NorthPoint Development for the construction of Three Trails Industrial Park in Kansas City, Mo. U.S. Bank provided $3 million in NMTC equity investment. In addition, PortKC, a Kansas City redevelopment agency, issued $9.9 million in bonds to help finance the acquisition, construction and improvement of the property. Three Trails Industrial Park will house LISC’s Financial Opportunity Centers’ fifth location that will provide job training, financial coaching and emergency assistance to area residents. Other tenants will include Boulevard Brewing Co. and Commonwealth Inc. Construction costs for first phase of development will be $16 million and will provide a 364,000-square-foot building. The second phase will provide a 331,000-square-foot building. NorthPoint Development has plans to construct 1.5 million square feet of vertical construction, including a new 365,000-square-foot speculative warehouse that was scheduled for occupancy in February.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

Learn more about Novogradac's expertise and many services