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New Markets Tax Credits News Briefs - October 2011

The city of Seattle, Wash.'s Office of Economic Development allocated $10 million in new markets tax credits (NMTCs) to support the INSCAPE building's renovation. The historic building will be redeveloped to create affordable space for local artists and is expected to revitalize Seattle's Chinatown/International District and Pioneer Square neighborhoods. The city made the NMTC allocation through Seattle Investment Fund LLC; its investment helped leverage private financing and an additional $3 million in funds from the U.S. Department of Housing and Urban Development (HUD) for the project. JPMorgan Chase served as the lender and equity investor. The INSCAPE project will create or retain more than 100 permanent jobs.

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In a separate announcement, Seattle Mayor Mike McGinn attended the groundbreaking ceremony for the Bullitt Center. The building, which will serve as the Bullitt's Foundation's headquarters, is anticipated to be the first office building in the nation to exceed LEED Platinum efficiency standards. The six-story, 50,000-square-foot building, also called the Cascadia Center for Sustainable Design and Construction, will be located at the intersection of Capitol Hill and the Central District. With this project, the Bullitt Foundation is trying to meet the goals of the Living Building Challenge, the world's most strenuous sustainability benchmark. The city allocated $10 million in NMTCs to the project through Seattle Investment Fund LLC that helped leverage private financing, including Recovery Zone Bonds. Two other community development entities, EcoTrust and McCormick Baron, allocated $6.9 million and $10 million in NMTCs, respectively. The building is expected to be an anchor for future economic development through onsite green building training programs, and will generate 94 direct construction jobs and 141 permanent positions.

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U.S. Bancorp Community Development Entity (USBCDC) and Travois New Markets partnered to provide $2 million in NMTC equity to an assisted living facility in central Alaska. The allocation will finance solar panels and a new wood-based heating system at the recently constructed $7.8 million Yukon-Koyukuk Elder Assisted Living Facility (YKEALF). It also provides capital for medical supplies and equipment, and creates a capital reserve to fund operations. YKEALF was developed by five Alaska Native tribes that needed a centrally located facility for their elders who otherwise would have to travel approximately 150 miles to access affordable housing, medical care and assisted living services. YKEALF's council says the new facility will allow for interaction among generations; community members will provide elders with food from fishing, hunting, trapping and gathering, while elders will be able to pass on their knowledge and values by storytelling, singing and teaching cultural crafts. Once operational, the facility will create nine permanent jobs.

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Partners Main Street Power Company Inc. and MS Solar Solutions Corp. (MSSS) announced that they have secured a second NMTC solar financing program and are constructing 2.9 megawatts (MWs) of distributed generation solar systems. The 35 projects at San Diego Unified Schools, University of California Davis, Contra Costa County and other locations throughout California, will be operational by the end of this year. Main Street Power is partnering with local solar installation firms and will own and operate the systems, which are projected to eliminate 56,000 metric tons of carbon dioxide emissions over 20 years. Main Street Power and MSSS financed the projects with a combination of NMTCs, the Section 1603 grant program and local utility incentives.

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The National Coalition for Capital (NCFC) at an awards ceremony on August 8 in San Antonio, Texas recognized two Maine legislators, Rep. Emily Cain, D-Orono, and Sen. Kevin Raye, R-Perry, as 2011 Champions of Small Business. Raye sponsored and Cain co-sponsored a bill to create a new markets tax credit program that helps small businesses and entrepreneurs from underprivileged areas gain access to capital.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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