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New Markets Tax Credits News Briefs - September 2013

St. Christopher’s Hospital for Children, the Philadelphia Industrial Development Corporation (PIDC) and Bank of America Community Development Corporation provided $15 million in NMTC financing for The Center for the Urban Child, located in the Feltonville/Juniata Park Community of Philadelphia, Pa. The transaction closed on June 20. The Center for the Urban Child, designed to break the cycles of food insecurity, violence and childhood illness for the children of Philadelphia, will provide children with comprehensive medical treatment and services. Included in the facility will be a 30,000-square-foot medical office building. The Center for the Urban Child is the first phase of an expansion development for St. Christopher’s Hospital for Children. The second phase will include construction of a 135,000 square-foot, four-story critical care tower attached to the main hospital building. The tower will have 50 new beds and 60 neonatal intensive care rooms. Cost is expected to total $110 million for both phases.

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Gregory N. Doran in July became group leader for Nixon Peabody’s tax credit finance and syndication practice. Previously, Doran worked as a general attorney in the Internal Revenue Service Office of Chief Counsel, providing guidance on NMTC and low-income housing tax credit (LIHTC) transactions and litigation support.

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U.S. Bank announced July 18 that the company will provide $24.7 million in NMTCs to the Boys & Girls Club of San Francisco (BGCSF). Funding will go to the Don Fisher Clubhouse and administrative headquarters. The BGCSF assists children in the city’s Western Addition, Lower Haight and Hayes Valley neighborhoods. U.S. Bank provided a $14.5 million bridge loan and $10.2 million in NMTC equity through a partnership with Opportunity Fund, San Francisco Community Investment Fund and U.S. Bancorp Community Development Corporation (USBCDC). By paying an annual membership fee of $10, children ages 6 to 18 will have access to a competition-size pool, gym, learning center, art studio, general recreation, with dedicated space for high school and middle school students. The clubhouse is set to open in November 2014.

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The Bullhook Community Health Center in Havre, Mont., received $7.3 million in NMTCs from Montana Community Development Corporation, USBCDC and partners. The 19,000-square-foot center will provide residents with health, dental and behavioral health services, and will expand visits up to 7,000 people per year. Other partners include, Bear Paw Development Corporation, Great Falls Development Authority, and the U.S. Department of Health and Human Services’ Health Resources and Services Administration. The development will create 25 construction jobs and approximately 36 full-time jobs. Construction is expected to be complete in June 2014.

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Thane R. Hodson and A. Ann Hered joined Butler Snow O’Mara Stevens & Cannada PLLC (Butler Snow) in its Denver expansion. The law firm is opening a new office that will specialize in new markets tax credits and public finance. Hodson and Hered will join the firm’s public finance and incentives group. Hodson previously worked as a senior staff attorney with the U.S. Securities and Exchange Commission’s division of corporate finance. Hered has represented clients on mixed-use developments, green construction, distributed solar and chartered schools.

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Local Initiatives Support Corporation (LISC) financed three developments with NMTCs. The Petersburg Library Foundation (PLF) in Petersburg, Va., will have a new 45,000-square-foot building with the help of a $2.3 million loan from the Virginia LISC. The library will have more space for bookshelves and computer usage and adult literacy training centers. The library will also have a café, Wi-Fi service and improved accessibility. Total cost is estimated at $13.1 million. The project broke ground in March. The Michigan LISC provided $200,000 in financing to the Kalamazoo County Land Bank Authority. The LISC loan will pay for construction costs. The Palo Alto Housing Corporation (PAHC) received $4 million in LISC financing from the Bay Area LISC to acquire Maybell Orchard at a cost of $19.2 million. PAHC plans to subdivide the land, construct 50 one-bedroom rental units on the land and sell the remaining acre.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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