New Markets Tax Credits Projects
Federal and State
New Markets Tax Credits Projects - Federal
PCDE’s historical direct investments in our country’s most disadvantaged areas and its proposed pipeline of critical needs are focused on projects that foster a sense of community and that help with specific needs of the area (health care, wellness, education and accessible jobs). Pacesetter CDE prides itself on building strong, long term relationships with local communities before, during and after its investments.
Closing Date: July 2010
QEI: $4.5MM ($20 MM project)
Description of QALICB: The Audubon Building is an eight-story building constructed in 1909 and formerly used as an office building. The building will be reused as a 166 room hotel. Audubon is located in highly distressed area in downtown New Orleans, LA. The property is within the boundaries of the Canal and Burgundy district of New Orleans and is on the edge of the French Quarter.
Community Benefits: This hotel has become the cornerstone of a major revitalization program. Since the start of the project, it has created hundreds of construction and permanent jobs. Audubon’s commitment to hiring the bulk of its employees from the surrounding low-income community was a key factor in its approval. By renovating this formerly abandoned building, Audubon provided the catalyst for significant additional reinvestment in the area. Today, Audubon has become a local landmark, a key anchor of the reinvestment zone, and a source of significant local and state revenue.
University of the Incarnate Word - School of Optometry
Closing Date: December 2010
QEI: $21MM ($40MM Project)
Description of QALICB: University of Incarnate Word is located in a highly distressed area in San Antonio, TX. The proceeds were used to build a 50,000 square foot school of Optometry. A clinic that provides discounted healthcare for low income optometry patients was also built on site. A top-tier project in our investment profile includes an add-on to this QALICB – a standalone eye care clinic. NMTCs were the only viable option to leverage donations and other investments. The University of the Incarnate Word School of Optometry (UIWSO) began its professional program in 2009. Although it began admitting students at that time, the school was significantly lacking resources - equipment, laboratories and class room space were in short supply. Today, thanks to Pacesetter CDE program, the UIWSO eye care facilities have the most advanced diagnostic instruments and technology that serve the citizens of San Antonio and South Texas. The clinical facility has the ability to serve thousands of patients per year. This project is now fully built out and student enrollment is growing. There are currently only 17 schools of optometry in the United States, and only one in Texas. PCDE management recently had the opportunity, first hand, to see the students in class, the laboratory in action and the patients receiving in-depth, top-notch clinical eye care. While public school is in session, children stream into the school to learn about the eye, its functions and other interesting science facts. The children, mostly from elementary schools located in LIC census tracts are also given free eye examinations.
Community Benefits: This project hit five key metrics, high paying jobs, benefits to the community through lowered healthcare costs, significant capital expenditures, local area revenue impact and expansion of educational opportunities. PCDE’s investment helped create a center of excellence that also created an eye clinic that provides healthcare access at a reduced price to qualifying LIC patients. These services will provide reduced cost care to low income community residents and provides free eye examinations to thousands of children in Bexar County. They will also provide eye care clinical services to a number of nursing homes and assisted living facilities in San Antonio.
Closing Date: December 2010
QEI: $4.5MM ($4.5MM Project)
Description of QALICB: PCDE’s investment helped create a series of retail, restaurant and office centers which are providing significant tax revenues to the local community and have helped fund additional high school teachers. The first store was completed by June, 2011. Frontier Fuel is a woman owned retail store located in rural North Texas. This was our first opportunity to invest directly into a “community experience” project. This project while providing a new opportunity for economic development in this non-metro town has become a significant source of revenue, helping to offset municipal costs.
Community Benefits: Located in Dalhart, population 7,237, this retail store is perfectly situated to capitalize on both local and travelling traffic. Dalhart is known by many Texans as the gateway to the Colorado Rockies. The city's position in the northwestern corner of the Texas Panhandle makes it a pivotal stopover for travelers going to or returning from the mountains. The economic benefits of this rural store include the employment of 40 short term construction jobs. Once the project was completed, thirty full time employment positions were created and filled. The operator of this project is a long standing member of the community and the business has become a focal point in this small, rural town. As an example of its community impact, recently, in order to honor the memory of local Iraqi War Veteran, the store promoted a Bike Rally. This rally generated hundreds of visitors and provided seven scholarships for local residents seeking higher education and technical apprenticeship.
University of the Incarnate Word - East Side Clinic
Closing Date: September 2012
QEI: $4.9MM ($9MM Project)
Description of QALICB: Eastside Clinic is located in a highly distressed area in San Antonio, TX. It is a standalone health clinic that provides indigent health care and created apprenticeship programs for a nearby minority school. The Eastside Eye Clinic is a 30,000 square foot building with a staff of 24 attending providers, 78 clinical interns and 35 full examination rooms. Charges for clinical care are based on a financial need sliding scale that would provide free and/or significantly reduced eye care for the residents of the local community.
Community Benefits: Besides first class and extensive eye care at reduced prices for local residents, the clinic provides incredible community benefits. The clinic (i) participates in community health fairs, (ii) is a community vision educational resource, (iii) provides optometric continuing education (iv) provides daily school screenings by providers and clinical students (5,000 children per year), (v) has a nursing home/assisted living on-site eye-care services and (vi) is a seat of knowledge for eye-care in the greater San Antonio area.
Cook Children's Health Care System
Closing Date: October 2012 and November 2013
QEI: $18.6 MM ($40.8MM Project)
Description of QALICB: Cook Children’s is a non-profit children’s health care system located in a highly distressed area in downtown Ft. Worth, TX. Cook Children's Health Care System provides pediatric specific services to all children along their entire continuum of health and medical care; primary, specialty, hospital, home health and government health insurance program beneficiary managed care. This includes mental health and a special initiative to serve the needs of our homeless children and their families. This financing expands medical care for children and residents of LICs. Cook Children’s centralizes all non-direct patient care staff and is a significant financial driver for the organization creating efficiencies and return for the entire health care system.
Community Benefits: This project created approximately 60 permanent jobs along with 249 full time equivalent construction jobs. Cook Children’s retained and relocated 371 employees from a non-qualifying location to a qualifying highly distressed LIC. A portion of the 120,000 SF facility will be made available as needed to various community groups and coalitions with a children’s health focus. Cook Children's is the only pediatric hospital in Fort Worth. Although there is a considerable amount of hospital, clinical and physician office space in the area, there is not a significant amount of general office space. For example, to make room for the expansion of Cook Children's Medical Center in 2008, the roughly 400 employees had to be relocated to one of four separate buildings outside this low income area. This development created space and the opportunity to bring all of these staff members back into the LIC area, benefitting the restaurants, shops and businesses in the area.
Closing Date: September 2012
QEI: $5.6MM ($5.6MM Project)
Description of QALICB: BSA Camp Wisdom is located in a highly distressed area in Dallas, TX on 371 acres just 11 miles from downtown Dallas. The Camp’s program targets underprivileged young men, bringing the benefits of leadership skills and independent thought among the region’s youth. Camp Wisdom is the primary campground for scouts participating via the ScoutReach program and is a venue for the Boy Scouts school-based Learning for Life character leadership program. Camp Wisdom is home to nearly 4 dozen campsites, rifle and archery ranges, a fully-stocked lake, an outdoor amphitheater, and a high-ropes fitness challenge course.
Community Benefits: The BSA project permitted Circle Ten Council, Boy Scouts of America, headquartered in Dallas, to provide a meaningfully improved outdoor experience at Camp Wisdom for several thousand participants including youth in the ScoutReach program for disadvantaged boys. The new Leadership Conference Center doubled the training capacity and created a new facility accessible to the community. The investment in Camp Wisdom resulted in higher retention rates among ScoutReach participants, increasing the number of disadvantaged youth who remain members of the Boy Scouts. PCDE’s NMTC financing funded the badly-needed facility and infrastructure upgrades, which improved retention among ScoutReach participants and better integrated the facility with the surrounding highly-distressed low income community.
West Liberty, KY
Closing Date: December 2012
QEI: $7.7 MM ($28.5MM Project)
Description of QALICB: In 2012, West Liberty, Kentucky was literally destroyed by a series of E-3 tornadoes. It was left “virtually unrecognizable” with six deaths and 75 injuries as winds of greater than 150 miles per hour overturned cars, leveled buildings and devastated the lives of inhabitants. Kentucky Gov. Steve Beshear described the scene as a “war zone” and one resident remarked, "The buildings are gone, but the town's still here." One victim of the storm later found her high school diploma 100 miles away. This financing helped rebuild several businesses including the community center and has begun the revitalization of this rural town. While every business and government building in the downtown was destroyed, the residents vowed to rebuild the community. PCDE willingly agreed to help in the rebuilding efforts. PCDE’s allocation was used to rehabilitate and recreate the Morgan County courthouse, the Morgan County Community Center, and several support buildings. A new health and wellness center was also developed.
Community Benefits: PCDE’s allocation was used to rehabilitate and recreate the Morgan County courthouse, the Morgan County Community Center, and several support buildings. A new health and wellness center was also developed. The health and wellness center was completely new construction and includes an indoor pool, fitness and workout rooms, a walking tack and community meeting rooms.
The construction created approximately 300 jobs. This project's primary focus is on retaining jobs in the LIC. It is anticipated by County officials that the culmination of this project will result in saving 300 jobs. Recently U.S. Congressman Hal Rogers of Kentucky said that this could be the largest storm recovery project ever in Kentucky. "We don't know of any project this size in Kentucky history," he said.
Hendrick Medical Systems, Inc.
Closing Date: December 2013
QEI: $7.0 MM ($15MM Project)
Description of QALICB: Hendrick’s School of Nursing is located in Abilene Texas. With the nation facing an ever worsening nursing shortage, PCDE, Texas Tech University and Hendrick Medical Systems, Inc. have endeavored to build a new nursing school at the Texas Tech University Health Sciences Center (TTUHSC) in Abilene. A new 32,100 sq. ft. facility allows the degree programs to grow. The project has a distinct and measurable positive impact on the growing nationwide nursing shortage adding ~ 144 new degreed nurses to the workforce each year.
Community Benefits: The project creates 36 permanent jobs and 125 full time temporary construction jobs. Hendrick Hospitals provide subsidized medical care to the community. It is estimated that the hospital will provide medical services to over 2,600 LIPs per year.
Coastal Alabama Farmers and Fishermen Market (CAFFM)
Closing Date: July 2014
QEI: $8.0 MM ($12MM Project)
Description of QALICB: Foley Farmers and Fishermen Market is located in a severely distressed rural community in Alabama. Foley, Alabama has relied on the fishing industry, tourism, and agriculture to grow the economy in Baldwin County. In April 2010, an oil spill from the blowout of the BP Macondo well resulted in devastating an already struggling economy, and brought the fishing and tourism industries to a halt.
Small and family-operated farmers and fishermen have challenges in marketing food even in a farmers and fishermen market. Managing to sell something (fresh vegetables and seafood) that has short and diverse expiration dates is tricky. Gauging the market and knowing how much to grow/catch and bring is risky.
Farmers and Fishermen are busy farming and fishing and could use help with marketing. CAFFM’s desire is to aid by developing a Food HUB to pool food together in order to have one point of distribution. The local food distributers express a desire for local food products. With so many small farms and boats, the CAFFM Food HUB will be an easy way for them to ensure a sale for their products without as much risk and waste.
Community Benefits: The construction of the Farmers and Fishermen Market will help revitalize the agriculture and fishing industries of Coastal Alabama post oil spill. The Market will assist farmers and fishermen to profit from the skill and ability of their trades, and strengthen the community through the creation of a city-owned farmers and fishermen’s market. The addition of the Market will increase the community’s access to fresh, healthy and affordable food in an area designated as a USDA Food Desert.
The potential for many more opportunities and beneficial effects exist as this market is developed.
Williams Food Works and Distribution, LLC
Closing Date: May 2017
QEI: $8.0 MM ($48.5MM Project)
Description of QALICB: Williams is a family owned and operated manufacturing production facility of link sausage, patties and breakfast sandwiches. They are also a distributor of food products for other companies. This project constructed and equipped a new facility for manufacturing, a cold storage and dry storage distribution center along with a truck maintenance shop and corporate offices.
Community Benefits: Williams Sausage Company, Inc. employs over 500 individuals at its existing facility and the expansion will add approximately 125 jobs in excess of $14/hr. average wage. The Union City area has experienced very high unemployment over the years with multiple companies shuttering facilities including Kohler, the laid off approximately 160 workers. Employees receive retirement plan benefits in the form of a 401(k) plan with matching employer contributions, paid vacation time, discounted products and paid holidays. Williams provides a full benefits package and all employees receive classroom and on the job training upon hire with additional training available throughout employment. This project was so impactful to the area that it received the 2017 Novogradac Journal of Tax Credits Deal of the Year Award for its measurable community impact. Tennessee Gov. Bill Haslam said that this PCDE investment “will create hundreds of new jobs for Obion County residents and bring us closer to our goal of making Tennessee the No. 1 location in the Southeast for high-quality jobs."
Closing Date: July 2017
QEI: $8.0 MM ($18.4MM Project)
Description of QALICB: Poplar Grove is a Green House® Skilled Nursing Center on a 13 acre tract of land located in Little Rock, Arkansas. In partnership with The Green House Project, a
nationally recognized leader in transformative, post-acute care for seniors, this progressive nursing home seeks to reinvent nursing home care by creating a home-like environment that maximizes the quality of life for up to 120 elders in the greater Little Rock area. The project consisted of 12 care "cottages" and an administrative building.
Community Benefits: This nursing home will provide care to elders regardless of their payer classification and provide higher than average long-term care wages and advanced educational training to employees in this impoverished area of Little Rock. The project will create over 248 construction related jobs and over 100 permanent, full time jobs. Once completed it will significantly advance the standard of life and care for countless elders in central Arkansas and advance the person centered care model of care in the United States.
North Texas Food Bank
Closing Date: September 2017
QEI: $9.0 MM ($23.9MM Project)
Description of QALICB: Established in 1982 by Jo Curtis, Ambassador Kathryn Hall, Lorraine Griffin Kircher and Liz Minyard, the NorthTexas Food Bank addresses the critical issue of hunger by providing food-insecure North Texans with edible surplus food and grocery items otherwise destined for landfills.
Community Benefits: Construction of the new 200,000 sf Northern Distribution Center will close a 30 million meal gap facing residents in North Texas. The project will include 60,000 sf of
dry warehouse space, 70,000 sf of refrigerated warehouse space, 12,000 square feet of
office space, seven refrigerated docks, 11 dry docks and a 28,000 square foot volunteer center with the capacity to accommodate up to 400 volunteers per day. The new facility is crucial to NTFB’s 10-year, $55 million Stop Hunger Build Hope Capital Campaign aimed at closing the 30 million meal gap by 2025. The new Northern Distribution Center will allow the Food Bank to expand its network, increase food capacity by 50%, distribute an additional 30 million nutritious meals annually, and close the current meal gap. The new facility will retain the existing 147 positions and create an estimated 20 new FTE jobs within the first three years of operations.
Big Brothers Big Sisters
Closing Date: August 2017
QEI: $6.5 MM ($8.3MM Project)
Description of QALICB: Big Brothers Big Sisters provides children facing adversity with strong and enduring, professionally supported one-to-one mentoring relationships that change their lives for the better.
Community Benefits: Big Brothers Big Sisters Lone Star (BBBS) new headquarters and program delivery space near downtown Houston will meet the growing demand for their mentoring programs and reach the more than 800 at-risk children waiting to be matched with a mentor. The new building gives the organization an increased capacity that allows it to double its reach and give more children the tools they need for future success. The headquarters are accessible and visible to its mentor and mentee client base and create a welcoming environment for them to connect and build relationships. The 21,000 square foot home includes program delivery areas, event space, and offices for volunteer mentor interviews to foster connectivity, functionality, and productivity, all essential to fulfill their mission. This additional space increases opportunities for community support and collaboration to sustain the work of BBBS.
Closing Date: May 2018
QEI: $3.5 MM ($3.5MM Project)
Description of QALICB: Interfaith Family Services empowers families in crisis to break the cycle of poverty. The name “Interfaith” reflects the various denominations of Christian churches that came together to offer transitional housing and empowerment programs for homeless families in response to a citywide study that revealed a lack of services for this population. Since then, they have helped hundreds of families achieve self-sufficiency. They exclusively target working poor families because they are the least likely to qualify for temporary assistance but the most likely to achieve long-term self-sufficiency when transitional support is available.
Community Benefits: Interfaith will open an extended-hours childcare center to give children an educational advantage while enabling parents access to life-changing services on nights and weekends. Parents will receive career coaching to help obtain employment with a livable wage while receiving the financial coaching needed to make the most of their new salary. The center's DART bus stop will make it easy for families from surrounding communities to participate in the programs offered.
New Markets Tax Credits Projects - State
2014/2015 Arkansas State NMTC Transactions
- $11.6 million allocation
- 58% tax credit
- Max QEI per QALICB is 25% of allocation or $2.9 million = minimum of 4 transactions
- Petros-Pacesetter has closed transactions reflecting the entirety of the allocation
Transaction #1: Akin Industries
Closing Date: March 3, 2014
QEI: $2.9 million (Total QEI of $7.7 million, 1 other CDE)
Description of QALICB: The Akin facility is an existing furniture manufacturer specializing in items for the health care and education industries. The tax credit investment will increase the production capabilities of the plant.
Community Benefits: 100 jobs created and 143 jobs retained. Per econometric modeling, the project is expected to have an annual direct financial impact of $14.8 million. The project will also support 51 indirect and induced jobs, with an impact of $7 million.
Transaction #2: Soul of the South
Closing Date: May 9, 2014
QEI: $2.9 million (Total QEI of $7.7 million, 1 Other CDE)
Description of QALICB: The Company will occupy a 30,000 square foot state-of-the-art studio facility and launch the Soul of the South Network, a new regional broadcast network property branded around the African-American Southerner and will own and operate a group of independent local broadcast stations and one local radio station in Little Rock.
Community Benefits: 149 direct jobs created. The findings of a econometric model conclude that the project will make a positive contribution to the economy of Arkansas. The average annual increase in the State’s GDP is estimated at $43 million.
Transaction #3: Fiber Resources
Closing Date: July 31, 2014
QEI: $2.9 million (Total QEI of $7.7 million, 1 other CDE)
Description of QALICB: The Company is a Pine Bluff, AR based timber processing operation that experienced a devastating fire in 2012. The fire destroyed production capabilities. Although the facility was rebuilt, insurance proceeds did not cover the entire costs and the business interruption had a deep impact on the company’s finances.
Community Benefits: The Company currently has an employment base of 50 full-time and %-10 temporary employees. The financing will stabilize the business and preserve the 53 jobs in this rural area. An economic impact analysis concluded the project will generate lasting effects on the entire region. Project employment is expected to increase to 77 in 2014 and 109 in 2015.
Transaction #4: Mid-River Terminal
Closing Date: February 23, 2015
QEI: $2.9 million (Total QEI of $33.7 million, 4 other CDEs in previous closing)
Description of QALICB: This project is located in a highly distressed, non-metro county; Mississippi County. The Company will serve as the onboard and offtake logistics supplier to the new mini rolled steel mill, Big River Steel (“BRS”) in Osceola, AR. The Company will co-locate with BRS, which is the largest economic development project in the history of Arkansas. The Company has entered into an exclusive, long-term service contract with BRS covering a range of material handling services for scrap, raw materials and finished goods by river barge and railcar. The Company is expected to handled 1.89 million tons of inbound scrap material and 320,000 tons of offtake annually.
Community Benefits: Mississippi County has traditionally faced challenges creating economic opportunities for the largely minority residents. More than 40% of its residents are living at or below the poverty level. The Osceola community has suffered disproportionate economic decline in recent years, which is overwhelmingly reflected in the area’s deteriorating facilities and failing infrastructure. This project will create 125 permanent direct jobs with average wage of $55,000. The median family income for Osceola is $26,588 and the per capita income is $12,406 while the living wage for a family of four is calculated to be $35,381. This facility will provide an improvement in the standard of living for the community when compared to existing market wages. An additional 75-125 indirect jobs are also expected to be created as a result of the project.
2015 Kentucky State NMTC Transaction
- $5.1 million allocation
- 39% tax credit
- Petros-Pacesetter has closed 1 transaction reflecting the entirety of its State NMTC allocation
Transaction #1: Cumberland Wellness Properties aka Cumberlands University
Closing Date: March 30, 2015
QEI: $5.1 million (Total QEI of $12.6 million, 1 other CDE provided $7.5 million of Federal QEI)
Description of QALICB: The University of the Cumberlands (the “University”), with 4,300 students (1,864 undergraduates and 2,434 graduates), has historically served students primarily, but not exclusively, from the beautiful Appalachian mountain regions of Kentucky, Tennessee, West Virginia, Virginia, Georgia, North Carolina, South Carolina, Ohio and Alabama. The University's impact can be seen in the achievements of its graduates who have assumed roles of leadership in this region and throughout the nation. It estimates that 65% of its students remain in the Appalachia area after graduation to provide needed services to the residents of the Appalachia area.
Project Description: The project resides in a Severely Distressed Census Tract with a poverty rate of 31.3% and an unemployment rate of 11.9%. The Project involves two phases, the first, the redevelopment of the entry way into the City of Williamsburg and the second, the relocation and redevelopment of the University’s sport facilities. With respect to the entry way, a new entrance to the City of Williamsburg, off Exit 11 from Interstate 75, will be constructed for the sole purpose of diverting traffic on 10th street to (i) the Williamsburg City School, (ii) downtown Williamsburg business district which services many restaurants, hotels and downtown businesses, and (iii) the University’s main campus. The road will be straightened, widened, and elevated above the flood plain by the Kentucky Department of Transportation. Modern efficient lighting will be installed for safety and all utilities are being buried providing more reliable and efficient service.
Community Benefits: By providing a direct and secure access to the University’s main campus from Interstate 75, the University campus will be visible from Interstate 75, which is expected to attract new interest in the University. As for the redevelopment of the University’s athletic facilities, it will increase opportunities to shape the talents and capabilities for its students, athletically, by adding men's and women's lacrosse fields; a softball field with dugouts; tennis courts; public walking track; a field house with locker rooms, concessions, public restrooms, and a press box. With these new facilities, the University will be able to host both collegiate and community events and will allow access to its walking tract to the general public. With the aid of the Project, the University will encourage area high school students to pursue higher education and enhance community involvement with the campus. In addition to the many jobs created during the construction, the University expects the Project to create several full time jobs. The Kentucky State Department of Transportation, City of Williamsburg, Kentucky Utilities, AT&T, Time Warner Cable, and University of the Cumberland have each contributed to this community economic development.
2015 Florida State NMTC Transaction
- $6.1 million allocation
- Petros-Pacesetter has closed 1 transaction reflecting the entirety of its State NMTC allocation
Transaction #1: KIPP Charter School
Closing Date: October 15, 2015
QEI: $6.1 million (Total QEI of $18.1 million ($6.1 million state stacked into $12 million Federal), 1 other CDE provided $12 million of Federal QEI)
Description of QALICB: KIPP Jacksonville has operated the highest performing middle school in the North and Westside communities of Jacksonville for the past 3 years, in one of most violent and economically challenged areas in the state. On average, students at KIPP Impact Middle School are achieving reading and math scores that are growing at rates 25-‐40% higher than peer public schools.
Project Description: In 2010, KIPP Jacksonville undertook a multi-phase plan to develop a high quality educational campus in a highly distressed community. A $27 million NMTC transaction funded the adaptive reuse of a defunct greyhound racetrack on a 15-acre site in a severely distressed census tract. The property and 150,000 SF clubhouse were converted into a 37-classroom campus for KIPP Impact and KIPP VOICE, transforming what had been a neighborhood eyesore. An indoor gymnasium was subsequently completed earlier in 2014 as a result of avoided debt burden achieved by the NMTC subsidy. The Project will be the final phase of the campus, resulting in the new construction of an approximately 75,000 SF building that will house two elementary schools serving 1,000 children across grades K-4. The building will have approximately 46 classrooms, a cafeteria, an outdoor (all-weather) gymnasium, and playgrounds. KIPP Jacksonville applied for a new charter in the summer of 2014 and expects to receive approval in November 2014, with the goal of serving a total of 1,800 students across grades K-8 (renewal of KIPP Impact’s charter is expected in spring, 2015). As KIPP believes in managing schools size for economic scale as well as teaching effectiveness, the Project will include two elementary schools to meet student demand, each with 500 seats. The two schools will open in 2015 and 2017. Admission preference is given to siblings of current students, and then to students residing in an 8-9 mile radius around the school in the North and Westside of Jacksonville.
Community Benefits: The Project will create 86 FTE jobs: Principal, vice principals, 68 teachers, paraprofessionals, operations manager, and administrative staff. On average, teacher’s targeted compensation is approximately $45,000 annually plus benefits including health, dental and retirement. Paraprofessionals and administrative staff make approximately $25,000 annually with benefits. In addition, approximately 26 full and part time positions will be outsourced (12 custodial and maintenance and cafeteria staff and 14 bus drivers), which will result in employment for local LIC residents.
2015/2016 Oregon State NMTC Transaction
- $24 million allocation
- Petros-Pacesetter has closed 3 transactions reflecting the entirety of its State NMTC allocation
Transaction #1: BC Fisheries
Closing Date: October 21, 2015
QEI: $8 million
Description of QALICB: BC Fisheries is an established (operating 7 years) and successful company, specializing in unloading and shipping live crab, shrimp, salmon, tuna, and other seafood products that is located in the Port of Brookings Harbor (POBH) on Southern Oregon Coast, adjacent the City of Brookings (population 6,374), five miles north of Oregon-California border.
Project Description: The planned project will expand BC Fisheries’ operations to include seafood processing. Current seafood processing in Oregon is concentrated farther north on the coast, requiring trucking of unprocessed seafood from POBH to other locations for value-added processing and wholesale distribution. Despite abundant multi-state (CA-OR) fisheries on the Southern Oregon Coast, limited seafood processing capacity in Oregon has constrained the POBH fishing fleet’s ability to participate in the seafood harvest. BC Fisheries is developing the project on property leased from POBH that was historically used for seafood processing, but has been vacant for many years. The new processing facility will use advanced cooking and freezing technologies that reduce energy and water consumption, reduce product spoilage, and increasing product yield and quality. The processing facility will increase the use of POBH’s existing, underutilized infrastructure - ice plant, fuel dock and cold storage and moorage facilities.
Community Benefits: The seafood processing facility will use advanced cooking and freezing technologies that reduce energy and water consumption in comparison to conventional seafood processing technology, reducing life-cycle greenhouse gas emissions by 6,983 Metric Tons of CO2eq per year. The expansion will reestablish the seafood processing industry in POBH and will protect 10 existing jobs and create 25 new permanent full-time jobs at BC Fisheries. The increased use of POBH infrastructure will also result in additional jobs for POBH. BC Fisheries’ expansion and the associated growth at the POBH will have added indirect and induced employment impacts. The expansion will increase BC Fisheries’ annual economic output by $14.2 million. The increased use of POBH infrastructure will also result in additional revenue for POBH. BC Fisheries’ expansion and the associated growth at the POBH will have added indirect and induced economic impacts, contributing to the revitalization of the City of Brookings and the South Coast region, which have been designated as distressed areas by the Oregon Business Development Department.
Transaction #2: Puff Factory
Closing Date: December 21, 2015
QEI: $8 million (Total QEI of $18 million, $8 million state, stacked into $10 million of Federal provided by 2 CDE’s)
Description of QALICB: Morale Orchards, LLC is an established pear orchard in Hood River, Oregon that produces 400 metric tons of fresh pears annually.
Project Description: The planned project will expand Morale Orchards’ operations (under a separate entity) to include a new food processing facility to produce freeze-dried pear products.
Community Benefits: The Project’s innovative freeze-dried processing technology will result in an annual GHG emissions reduction of 185 metric tons of CO2-equivalent emissions (a 62.5% GHG reduction), in comparison to the conventional individually quick frozen (IQF) technology currently in use in the fruit processing industry.
Transaction #3:Old Mill Solar
Closing Date: April 22, 2016
QEI: $8 million
Description of QALICB: The Old Mill Solar project is a utility-scale, 5 megawatt, alternating current (5MW-ac) solar facility in Bly, Oregon (Klamath County).
Project Description: Old Mill Solar is a 5.0MW-ac solar photovoltaic electric power generating facility with interconnect to Pacific Power's transmission grid. It will be constructed on the site of a former sawmill, in Bly, Oregon (Klamath County).
Community Benefits: The electricity the project produces will be sold to Pacific Power under a power purchase agreement. The project will create approximately 50 temporary construction jobs for local skilled workers, a permanent maintenance and operations job, and ongoing property tax revenue for Klamath County. As a renewable energy project, the project will meet the allocation set-aside requirement of greenhouse gas reduction.
2015 Nebraska State NMTC Transaction
- $4.195 million allocation
- Petros-Pacesetter has closed 1 transaction reflecting the entirety of its State NMTC allocation
Transaction #1: Nebraska Distillers Products LLC
Closing Date: November 19, 2015
QEI: $4.195 million (Total QEI of $22.39 million, including $8.39 million of state NMTC provided by 2 CDE’s and $14 million of Federal QEI provided by two CDE’s)
Description of QALICB: The Nebraska Distillers Products (“NDP”) company is value added agricultural / clean technology corporation located in Ord, Nebraska.
Project Description: The NMTC financing will be used for real estate, building, storage bins, handling conveyors and equipment costs. NDP has a licensed and patented technology to transform wet, modified, or dried distillers grains (agricultural waste products) into compressed cubes, pellets, and tubs used for feeding livestock. The product has been produced for two years and is ready for full scale expansion into the ranchers market. The project is located in a non-metro, highly distressed census tract.
Community Benefits: This agricultural company expects to create the following jobs with its clean technology:
- Direct Jobs: 61 total jobs; 50 construction jobs; 11 full-time jobs. These jobs will include facility manager, assistant manager/maintenance manager, bookkeeper/billing clerk, and at least eight full time production positions.
- Jobs to Low-income Individuals: low-income residents will have all opportunities for the positions. Job training will be necessary due to the type and nature of the equipment. The production process is automated, and technology driven. The Project anticipates working with the area schools, and community colleges to find qualified workers.
In addition to the jobs mentioned above, the Project expects indirect job creation during the development construction phase, and also once the plant is operational.
- Valley Transportation, LLC has 9 tractor-trailer units for hauling/delivering distillers grain and livestock feed.
- It is anticipated that at least 2 more tractor-trailer units will be added to Valley Transportation, LLC, which will result in 4 additional driving jobs, or more.
- V-3 Nutrition, LLC is a provider/brokerage for raw distillers grains to customers throughout the state of Nebraska including Nebraska Distiller Products. V-3 anticipates it will be adding additional sales personnel.
2016 Illinois State NMTC Transaction
Transaction #1: Professional Freezing
Closing Date: July 28, 2016
Description of QALICB: Professional Freezing specializes in product handling and offers temperature controlled services. The facility is USDA inspected and has multiple dock spaces allowing for container loading and unloading. They also provide freight services to and from the facility for local customers.
Project Description: Professional Freezing constructed a new 170,000 SF cold-storage facility located in Bedford Park. The total project cost $21,525M. The project was funded via a $16,830M Construction Loan from the Bank in conjunction with $1,870M of equity from the Borrower. Post-construction, the SBA will refinance $4,867M under the SBA 504 Program leaving the Bank with an $11,830M Term Loan at an LTV of less than 65% against the “as completed” appraised value of the real estate.
2017 Kentucky II State NMTC Transaction
Transaction #1: Berea College
Closing Date: September 19, 2017
Description of QALICB:
Project Description: College Health-Science Facility/New Construction. The Margaret A. Cargill Natural Sciences and Health Building is a $72.0 million, 125,000 square foot facility which will accommodate Berea College's biology, chemistry, mathematics, physics and nursing departments. Designed to accent the historic aspects of the College's campus, it will feature a central lab, space spanning four floors, and technology-rich "classatories" that mix traditional classrooms with laboratory components. It also will contain a 3D visualization lab, optics lab, high-fidelity nursing simulation center, digital learning theater/planetarium, astronomy observation deck and conference rooms.
The current home to Berea College's science programs is the Charles Martin Hall Science Building, first built in 1928, with additions and renovations in 1954 and 1987. The Hall Science Building is undersized and underequipped for current and future needs. The Hafer-Gibson Nursing Building, completed in 1969, also is outdated and undersized. Combining the two existing facilities and housing the sciences, mathematics and nursing in a modern, spacious and well-equipped Facility will advance these programs and, coupled with the new technology building described above, should expand Berea' s capacity to educate STEM majors by 25% over time.
Berea College has offered employment to all of its students for more than a century, and it was one of the founding members of the Work Colleges Consortium ("WCC"). This federally recognized organization includes eight residential liberal arts institutions that provide a universal work experience as part of their educational programming. The work program has become integral to the Berea experience. In consequence, the College has 1,600 intelligent, motivated part-time employees. All of the WCC institutions receive federal grant funding; at Berea, it uses a portion of that to pay students in the form of a nontaxable hourly wage, which increases with added experience and job responsibilities. The students' earnings can be used for general living expenses as well as to help contribute to the cost of their attendance. (While no student pays tuition at Berea, they and their families are expected to contribute as determined by the FAFSA to fees and living expenses.) The compensation earned through the work program thus helps to minimize debt for its students. About a third of the students graduate entirely debt-free, with the rest borrowing an average of less than $7,000. The students in the main are very capable workers. The majority start in positions involving working with their hands, in food service, as custodians, on its farm (one of the oldest continuously operating student educational farms in the United States), in its students crafts industries and the like. Starting with these assignments enables them to experience and value the dignity of manual labor well done.
Community Benefits: In the short-term, the new Science and Health Building will not create an appreciable number of new jobs. It will, however, create the capacity for modest growth, over time, in numbers of faculty and staff engaged in the sciences, mathematics and nursing education if the numbers of students majoring in these fields rises to the capacity of the building. The number of full and part-time teaching and support jobs relocated from the existing science and health buildings will be approximately 39 faculty and staff positions, with a combined payroll of $2,940,000.