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New Markets Tax Credits News Briefs - November 2014

On Sept. 29, California Gov. Jerry Brown vetoed A.B. 1399, the state new markets tax credit (NMTC) bill. In his veto message, Brown said that the bill, over time, would cost $200 million, and that while he endorses programs that result in private investments to help low-income areas, a bill that spends such an amount should be considered with other priorities during the annual budget. The bill is available at www.newmarketstaxcredits.com.

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Rep. Rick Nolan, D-Minn., announced the approval of federal NMTCs for improvements to Heritage Living Center, a nursing facility in Park Rapids, Minn. The NMTC allocation is in addition to bonds that are to be issued by Hubbard County, the facility’s owner. Additional financing and development assistance is being provided by Hubbard County and the Friends of Heritage nonprofit foundation. The Heritage Living Center will provide 64 beds for nursing care, but improvements will add a therapy area, private bathrooms and showers in all patient rooms and additional amenities for residents. More than 100 jobs will be retained. Construction will take place during the next 24 to 30 months, and residents will be allowed to continue living in the building. At press time, a start date for construction had not been set.

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On Sept. 18, the Children’s Hospital of Philadelphia (CHOP) and the City of Philadelphia broke ground on the construction of Community Health and Literacy Center, a state-of-the-art health, wellness and literacy center in Philadelphia. The Commonwealth Cornerstone Group (CCG), a community development entity (CDE) of the Pennsylvania Housing Finance Agency, awarded $8 million in NMTCs for construction. In addition, three CDEs provided a combined $22.5 million in tax credits. The center, developed in partnership by CHOP and the city of Philadelphia, will be a 96,000-square-foot, three-story facility. The center will be home to the CHOP Care Network Primary Care’s south Philadelphia office, the city’s Health Center 2 and the city’s South Philadelphia Neighborhood Library. In addition, a portion of the land will be dedicated to the DiSilvestro Playground and Recreation Center. Development is expected to create 234 temporary construction jobs and five permanent jobs. A total of 42 jobs will be retained at the City Health Center, 11 jobs at the library, two recreation facility jobs and 85.5 jobs at CHOP. Construction and operation of Community Health and Literacy Center is expected to support 40 additional indirect jobs and have a total economic impact for the region of more than $47 million. The center is expected to be completed by December 2015.

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On Sept. 8, Ferguson Enterprises, a distributor of residential and commercial plumbing supplies, announced a lease agreement with Wangard Partners Inc., a commercial real estate firm, for a 72,000-square-foot building in West Allis, Wis. The building, along with a 50,000-square-foot industrial building that Wangard plans to construct on the 9.6-acre site, is part of the redevelopment of the Yellow Freight terminal. First-Ring Industrial Redevelopment Enterprise Inc. (FIRE) provided a $14 million NMTC allocation in early August, which will provide nearly $3 million in equity financing. Other funding sources include a $500,000 loan from the city of West Allis Revolving Loan Fund; PNC Bank; PyraMax Bank; the Wisconsin Housing Economic and Development Authority and the U.S. Environmental Protection Agency. Ferguson will use the building for offices and warehousing. Construction and redevelopment of the two buildings is expected to begin this fall and be complete in spring 2015.

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On Sept. 17, the Nebraska Department of Revenue announced it began receiving application for the New Markets Job Growth Investment Actprogram Oct. 1. Applications received by the department before Oct. 1 will be considered to have been received on Oct. 1. A total of $12.4 million in qualified equity investments is available for this round of applications. Application forms and other related documents are available from the Nebraska Department of Revenue.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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