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New Markets Tax Credits News Briefs - May 2010

The Community Development Financial Institutions (CDFI) Fund has released its fiscal year 2009 Performance and Accountability Report, an annual publication that provides a comprehensive assessment of its operations. The CDFI Fund reported that as a result of the American Recovery and Reinvestment Act it experienced unprecedented funding levels in fiscal year 2009, as well as the certification of 55 new CDFIs and the creation of new initiatives and offices within the CDFI Fund. Download the full report at www.newmarketstaxcredits.com.

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When U.S. Bank acquired the deposits and assets of Park National Bank last October, it also acquired Park’s new markets tax credits (NMTCs) and in March said it would create an independent not-for-profit organization known as Chicago Neighborhood Initiatives to carry out Park Bank Initiatives’ community development mission. The stand-alone organization will take over the redevelopment and rehabilitation projects and ensure that the NMTC allocation that was awarded to Park National Bank Initiatives last year is used to benefit low- and moderate-income Chicago neighborhoods. David Doig, former president of Park Bank Initiatives, will head the new program along with an independent board of directors.

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Wells Fargo provided a $17.8 million NMTC investment to Neighborcare Health to construct a low-income health and dental clinic in the Rainier Beach neighborhood of Seattle, Wash. Wells Fargo supplied a $12.8 million below-market loan and a $5 million equity investment; the financing structure enables Wells Fargo and Neighborcare to share the NMTC benefits. Tracy Ericson of Wells Fargo Community Lending and Investment supervised the transaction. Neighborcare, the largest provider of primary health care for low-income and uninsured persons in Seattle, serves more than 48,000 patients each year.

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Commonwealth Dairy broke ground on a new dairy in Brattleboro, Vt. that includes alternative energy sources and will be designed to accept milk from the open market as well as from segregated milk streams. The facility is expected to create at least 24 jobs within three years. The Vermont Economic Development Authority (VEDA) provided a portion of the equity funding through a $1.3 million loan utilizing NMTCs. Other funding sources include more than $1.2 million in Vermont Employment Growth Incentives, a $639,920 Community Development Block Grant and a $300,000 federal grant. Commonwealth, in partnership with Ehrmann AG, will make yogurt for other companies under private label and co-pack arrangements and sell its own “Mountainberry” branded product.

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Enterprise Community Partners Inc. announced the selection of three new members to its board of trustees: Gregory Baer, Alicia K. Glen and Donna M. Milrod. Baer, a published author, is the deputy general counsel for corporate law at Bank of America, representing the bank on regulatory issues, public reporting, corporate funding, human resources and private equity activities. Glen heads the urban investment group at Goldman Sachs Bank USA and is responsible for implementing the firm’s Community Reinvestment Act business strategy. Milrod is the managing director and head of the regional oversight and strategy group of Deutsche Bank Americas. Along with fellow board members, the new trustees will advise Enterprise as it implements its strategic plan.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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