Sponsor: Integrity Development Partners, LLC
Type of Development: Rural - Real Estate
Owner: IDP, LLC
Cty and State: Lake City, FL
Contact Person: Matthew Masiel
Contact Email: [email protected]
Allocation Amount Requested: $10,000,000 - $14,000,000
Brief Description of QALICB:
Integrity Development Partners ( IDP ), LLC is working on a very nice project in Lake City, Florida, which is in a rural, highly distressed census tract. IDP, LLC proposes to redevelop and operate the Historic Blanche Building in partnership with the City of Lake City and Columbia County . The proposal is for mixed use of the Blanche s 79,600 square feet consisting of commercial space, office space, residential units, and a conference room. Construction financing is proposed by IDP in partnership with the City and County by means of conventional financing, Federal Historic Tax Credits, Federal New Market Tax Credits, soft loans/grants and developer equity projected at approximately $14 million.
An Economic & Fiscal Impacts Analysis was prepared on December 12, 2014 by Fishkind and Associates Economic Consultants. The analysis reveals positive community value in the form of significant economic impact both during construction and upon completed redevelopment of the Blanche Building.
The project will consist of office, retail, residential, meeting, and event space. The City of Lake City and Columbia County are supporting the project financially. They are combining to grant the project $1,000,000 and loan the property and additional $1,000,000 at a 0% interest rate. The ad valorem taxes generated by the Project will be calculated at post-development value and applied toward repayment of loans granted by the City and County for a period of 15 years or until such loans are repaid, whichever occurs first.
Also, the City and County will enter into a master lease of 60% of the non- residential space at a rate of $11 per square foot triple net for a term of 7-years from construction completion. The master lease is for 38,835 square feet at an annual rate of $427,200. The project is anticipated to create 125 direct jobs and 65 construction jobs.
There is a gap in the current financing structure. Without the NMTC, this project will not move forward. The project is looking to close late summer of 2015, but without the NMTC this project will be delayed. They have approvals from the City and County to move forward with financing and to be tenants of the project, but the sponsor needs the NMTCs before they can proceed to closing.