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New Markets Tax Credits News Briefs - September 2011

Sharp HealthCare received $39.7 million in a new markets tax credit (NMTC) allocation from Citi Community Capital, Lowe Economic Development Company and The East Los Angeles Community Union to build a new facility in downtown San Diego, Calif. The new Sharp Rees-Stealy Downtown medical office will replace an existing facility with a LEED Gold-certified building that will serve an additional 10,000 patients per year in a highly distressed area. Sharp said that in addition to the expected 250 construction jobs created to construct the facility, the organization will maintain 236 permanent, full-time jobs and add 16 additional full-time positions when the facility is operational in 2012.

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National Community Fund I (NCF) and United Fund Advisors (UFA) will provide a total of $54 million in NMTC financing for four projects: The Waterside School in Stamford, Conn.; the Knowledge is Power Program (KIPP) NYC College Prep High School in Bronx, N.Y.; Farwest Steel Corporation in Vancouver, Wash.; and Blanchet House in Portland, Ore. The financing represents more than 70 percent of the $77 million in NMTC authority that NCF received in February. Financing for The Waterside School funded a new 37,000-square-foot LEED Silver-certified building that allowed the school to double its enrollment. The $20.9 million project created approximately 87 construction jobs, maintained the existing staff and provided for the addition of 10 faculty positions. In the Bronx, NCF closed on financing for a LEED certified facility that beginning in fall 2013 will serve as KIPP NYC College Prep's permanent home. The project is expected to create 245 construction jobs and maintain approximately 90 faculty and staff positions. Farwest Steel Corporation is using its NMTC financing to build a new $49.6 million carbon steel processing plant. The plant will create 300 construction jobs, retain 100 existing jobs and create 128 permanent jobs. JPMorgan Chase provided NMTC equity for these three projects. In Portland, Ore. the not-for-profit social services charity Blanchet House will receive financing to facilitate construction of a $13.4 million LEED Gold-certified building. U.S. Bank served as the NMTC equity investor for the transaction.

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Montana Community Development Corporation (MCDC) allocated $7.5 million in NMTC financing for the development of a new office building that will allow a long-time local business in Helena, Mont. to remain in the downtown area. The nearly 30,700-square-foot building on Pioneer Block, an area that is a key component of Helena's downtown revitalization efforts, will house offices for the law firm Browning Kaleczyc Berry and Hoven PC and provide additional commercial lease space. The building, which is being developed by Pioneer Block LLC, will be styled to be consistent with the historic downtown and is expected to receive LEED certification. Valley Bank of Helena, First Bank of Wyoming and First Bank of Montana provided NMTC equity for the transaction. MCDC estimates that the development will generate $12.3 million in economic activity from construction through 10 years of operation. Construction is slated for completion in 2012.

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First Lady Michelle Obama announced the creation of California FreshWorks Fund (CAFWF), a $200 million loan fund designed to increase access to healthy, affordable food in underserved California neighborhoods. The California Endowment and other partners developed CAFWF to align with the National Healthy Food Financing Initiative (HFFI). For information about NMTC investments through this initiative, download the July 26 Tax Credit Tuesday podcast at www.novoco.com.

CORRECTION

The article "Twinning NMTCs with SBA 7a Loans: Legal and Practical Considerations," in the August issue of the Journal of Tax Credits was printed with an error. The final two sentences in the second paragraph were incorrectly placed and were not meant to appear in that paragraph. We regret the error.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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