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Crescent Growth Capital, LLC

Crescent Growth Capital, LLC

Structuring project financing to incorporate tax credit equity.

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Fresh Foods

New Orleans Culinary and Hospitality Institute

December 28, 2017 by

New Orleans Culinary and Hospitality Institute (NOCHI) was established for the purpose of marrying world-class culinary & hospitality facilities, content and programming with New Orleans’ indisputable standing as a world-class culinary & hospitality city.  Beyond providing traditional training, education and R&D in the fields of culinary arts and hospitality, NOCHI aspires to elevate New Orleans to a position of thought leadership across multiple disciplines that intersect with food/hospitality for the purpose of creating rewarding careers and improving quality of life for its local citizens and the larger global community.

In 2014, NOCHI purchased the former ArtWorks building with the intent to renovate it into a state-of-the-art workforce training facility.  The concept of a culinary and hospitality training facility was developed in response to two alarming trends in New Orleans: a shortage of trained restaurant staff, and high rates of both non-employment and underemployment, particularly among African-Americans—e.g., a 2013 study conducted by the Lindy Boggs Center for Community Literacy at Loyola University reported that 52 percent of African American working age men in New Orleans are not working.

In December, 2017, CGC and NOCHI closed on a $19M financing to renovate the ArtWorks facility, utilizing NMTC allocation provided by United Fund Advisors and Enhanced Capital, and a NMTC equity investment provided by Iberia Bank.  The 93,000 sf facility will house a wide variety of programming, including Culinary Training Program, Workforce Training Programs, Enthusiasts Courses and Community Programming as well as Tulane’s Freeman School of Business new Hospitality Entrepreneurship programming.

As part of a cooperative endeavor agreement with New Orleans Convention Center, NOCHI is mandated to provide subsidized workforce training to between 100-500 students annually.  These programs will range from “standardized” programs for industry-wide needs to employer-based custom training programs that NOCHI would help develop and execute.

Beyond the subsidized training they receive, NOCHI students will be able to take advantage of the school’s Educational Advisory Board, comprised of a wide representation of the local hospitality industry, who will oversee the customization of the curriculum to meet the needs of different types of participants, as well as of prospective employers, by adding field trips, job shadowing, guest speakers, and/or internship opportunities that can be arranged within less than a mile of NOCHI’s location.

Furthermore, NOCHI students will also be able to leverage NOCHI’s ties to the local hospitality industry to find a new position after graduation.  While NOCHI’s facilities will provide for hands-on food and beverage learning lab space, the school’s proximity to hundreds of hotels allows for convenient access to real-world learning “lab” spaces for other hospitality positions.

North Texas Food Bank

September 6, 2017 by

Established in 1982 by Jo Curtis, Ambassador Kathryn Hall, Lorraine Griffin Kircher and Liz Minyard, the North Texas Food Bank (“NTFB”) addresses the critical issue of hunger by providing food-insecure North Texans with edible surplus food and grocery items otherwise destined for landfills.

Today, NTFB leads the fight against hunger by distributing donated, purchased and prepared food to 439,000 unduplicated individuals annually through a network of more than 200 Partner Agencies and 1,000 feeding sites in 13 North Texas counties, including: Collin, Dallas, Delta, Denton, Ellis, Fannin, Grayson, Hopkins, Hunt, Kaufman, Lamar, Navarro and Rockwall.  61% of NTFB clients are minority, 82% of client households earn less than $20,000 annually and a staggering 83.4% of NTFB clients are food insecure – meaning they would otherwise have no alternative source of food.  Furthermore, food insecurity affects the elderly to a disproportionate degree, given their fixed incomes and higher medical costs, in fact, every month 31.5% of NTFB clients must make a choice between food and medical care. Established in 1982 by Jo Curtis, Ambassador Kathryn Hall, Lorraine Griffin Kircher and Liz Minyard, the North Texas 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.

Hunger continues to be a growing problem across the United States, and North Texas is no different.  Based on Feeding America’s Map the Meal Gap 2014 report, the estimated current annual need in North Texas is approximately 92 million nutritious meals.  Since recently completing a three-year strategic plan, ReThink Hunger, NTFB is operating at maximum capacity with its current facilities and unable to meet the remaining need for an additional 30 million nutritious meals annually.

According to Feeding America, one in six people in NTFB’s 13-county service area (856,060 total) is at risk for hunger and hunger-related health issues, and the number of food-insecure individuals continues to rise.  The populations most affected are families living below the poverty line, the working poor, seniors on a fixed income, adults with disabilities and children.

As part of its $55 million Stop Hunger Build Hope Capital Campaign, NTFB developed a plan for a new Northern Distribution Center in Collin County.  The proposed 200,000 square foot facility is expected to house 60,000 square feet of dry warehouse space, 70,000 square feet of refrigerated warehouse space, 12,000 square feet of office space, seven refrigerated docks, 11 dry docks, a Community Garden, and a 28,000 square foot volunteer center with the capacity to accommodate up to 400 volunteers per day.

In September, 2017, Crescent Growth Capital facilitated a $24M NMTC financing to help fund the $27.4M construction cost of the new Northern Distribution Center, using allocation provided by Texas Mezzanine Fund and Pacesetter, with a NMTC investment provided by US Bank.  The approximately $4.4M in net NMTC subsidy directly reduced the amount of capital campaign funds required to complete this particular project, as well as affording the non-profit some flexibility for the other Stop Hunger Build Hope Capital Campaign projects.

West Texas Food Bank

July 20, 2016 by

For more than 20 years, the West Texas Food Bank (“WTFB”) has been West Texas’ only provider of reliable, affordable food.  The Food Bank serves the needy in two ways; first, they provide meals to more than 44,000 clients annually in their 19-county footprint.  Secondly, they provide food to a network more than 80 non-profits, leveraging the wider reach of those partners.  WTFB continues to purchase greater amounts of food, because greater efficiency in food manufacturing is reducing surpluses that used to be donated to food banks, and also because of increased demand, particularly in the Permian Basin area.

The inflationary effect on rents as a result of the oil boom has driven many people, especially the longtime resident elderly, to seek food from WTFB and its partners.  Elderly residents living on fixed incomes cannot easily survive as food prices rise.  The Food Bank, with its affiliation with Feeding America, is able to negotiate cheaper prices on food, passing this savings along to its partners and expanding the reliable supply of free food to the neediest of West Texas residents.

For more than a decade, the WTFB has recognized that the demand for its services far outstrips its ability to cope with that demand, that a new, larger facility would be required to meet growing needs.  Census data reports that since 2000, the combined population of Midland and Ector counties has risen by more than 40,000 people, and the number of individuals served by the WTFB has grown in lock-step with the population increase over that time.  The existing facilities are out-of-date, over-used, and under-prepared to serve hungry West Texans.

Despite being hamstrung by inadequate facilities, WTFB’s impact on the community has nevertheless been staggering.  In 2014, WTFB distributed over 5 million pounds of food, or 4.2 million meal equivalent, to people in need: 40% of whom are children, 16% are seniors, and 63% are Latino.  Seventy-four percent of WTFB clients have incomes that fall at or below the federal poverty level, with 89% of client households having annual incomes of $20,000 or less.

17 of the 19 counties WTFB serves are rural, and most of their service area is a USDA Food Desert.  Over 98% of the 418 US counties that are designated Food Deserts are rural, and are some of the poorest in the US.  Rural food deserts not only face higher poverty rates, lower median incomes, and significantly older populations than other rural counties, but they also suffer from severely limited access to quality, affordable food options, resulting in an extremely unhealthy and impoverished community.  Studies conducted in rural food deserts show that more than 45% of the population did not consume adequate amounts of fresh fruits, 67% did not eat enough vegetables, and 34% lacked adequate dairy in their diets[1].  These populations must turn to smaller grocery stores that have a limited variety of quality foods and tend to charge higher prices[2].

In July, 2016, WTFB and Crescent Growth Capital closed on a $6MM NMTC financing, utilizing $5MM in allocation from McCormack Baron Salazar and $1MM from US Bank, to finance to construct a new 11,150 square foot volunteer activity and program innovation center.  The nearly $6MM distribution center will feature 11,150 square feet of interior space and 7,000 feet in outdoor learning space, serving as the primary volunteer activity and program innovation center for the WTFB.  The facility will add storage capacity as well, but more importantly, it will provide space to interact with the community, for classes covering topics ranging from basic nutrition and wellness to growing fruit and vegetables at home.

Volunteers, such an integral part of the food bank’s operations, will finally have adequate space to meet and work, operating a wide variety of programs at a very efficient cost.  The WTFB simply could not provide all it does for the community, were it not for its army of volunteers donating their spare time to help their hungry neighbors.  A new facility will greatly improve volunteers’ effect on the surrounding community.  The $6MM Midland project includes the following amenities:

  • Demonstration Kitchen – A fully outfitted home-style kitchen used to demonstrate appropriate cooking techniques to community members such as youth groups, SNAP recipients, people with health issues that bring with them with dietary restrictions, and many more groups who will receive instruction from food experts.
  • Client Choice Pantry – Modeled after a convenience store, this room will have refrigeration and shelving that allows clients who need food to come in and select what foods they want. The Client Choice Pantry is available to first-time users; thereafter, clients are referred to one of the WTFB partners for ongoing service.
  • Large Warehouse Area – The warehouse area is used for storing foods, and includes a freezer/refrigerator section of significant size, and will serve as a staging area, utilized by the many volunteers who serve as unpaid labor for the food bank.
  • Community & Training Room – This room will be available for use by the community for meetings and conferences. It will be fully outfitted with audio-visual equipment to facilitate presentations so that appropriate learning can take place.
  • Hunger Alleviating Trail – An outdoor learning space, the Trail will be planted with native plants that are edible, and other plants that can thrive in Texas’ arid climate. It will serve as a meeting place for youth groups and others to learn how to grow desert gardens.
  • Earth-Bermed & Conventional Green Houses – An underground greenhouse will receive daylight but will be maintained at a cooler temperature to allow for a wider variety of plant life to blossom. An above-ground green house to grow winter vegetables during the cooler months.

[1] “Starved for Access: Life in Rural America’s Food Deserts”

[2] P.M Morris, L. Neuhauser, and C. Campbell, “Food Security in Rural America: A Study of the Availability and Costs of Food.” Journal of Nutrition Education 24: 52S-8S; (1992)

 

Cermak Fresh Market at The Fields

September 16, 2015 by

Originally built in 1874 by Walter E. Olson as the manufacturing mill for the Olson Rug Company, 4000 West Diversey quickly became “the place” to buy rugs in Chicago. In 1935, Walter Olson brought in more than 800 tons of stone and 800 yards of soil to build Olson Memorial Park, and its centerpiece, the Olson Waterfall.  Named as one of Chicago’s Seven Lost Wonders by the Chicago Tribune (August, 29, 2005), Olson Waterfalls and Rock Garden was one of the most beloved family attractions in the City until it closed in 1971.

In 1965, Marshall Field & Company purchased 4000 West Diversey and reopened the facility as a massive department store. In 2005, the warehouse was sold to Macy’s, Inc., as part of its purchase of Marshall Field’s, and the warehouse spent three years as a home for one-off sales, before being shuttered in 2008.

In 2014, 6 years after the building had closed, its ownership began drawing up plans for a a multi-phase redevelopment of the Marshall Field’s facility.  The first phase of this redevelopment included a 68,000 sf Cermak Fresh Market grocery store on the first floor, which would serve as the anchor, catalyzing further development.  Founded in 1986 by Dimitrious “Jimmy” Bousis and his late partner Pantellis Tzotzolis, Cermak Fresh Market has grown from a single 2,500 sf Central Park Produce store to 11 full-service grocery stores, including the recently-completed store in Milwaukee, WI, the operator’s first outside of Illinois. The family-owned business enjoyed early success by catering to the Puerto Rican community in Chicago’s Humboldt Park area.  As it grew, the grocery chain broadened its focus to serving all of Chicago’s various ethnic communities and today, Cermak Fresh Market is a full-service international grocery store.

On September 16, 2015, Crescent Growth Capital and Cermak Fresh Market closed on a stacked $7.5MM State/$6MM Federal NMTC structure, using Illinois State NMTC allocations from the Southside Community Optimal Redevelopment Enterprise (SCORE) and the Valued Advisor Fund (VAF), and Federal Allocation from SCORE.  The NMTC financing provided the necessary funds to renovate a portion of the first floor for Cermak Fresh Market, and the combined State and Federal NMTC subsidy drastically reduced Cermak’s cost of capital, substantially improving the prospects for the new store.

Niemann’s CountyMarket

April 25, 2014 by

Niemann Foods, Inc. (“NFI”) is an employee-owned, family-run company headquartered in Quincy, Illinois.  Brothers Ferd and Steve Niemann opened their first grocery store in 1917,  and within a decade, the brothers had opened 10 more.  In 1940, they launched their first ever full-service supermarket in Quincy, IL.

Today, NFI is run by Rich Niemann, employing around 4,000 people in more than 100 supermarkets, pharmacies, gas stations, convenience, pet and hardware stores in Illinois, Iowa and Missouri under a variety of banners: the County Market, County Market Express, Cub Foods, ACE Hardware, Pet Supplies Plus, Pick-A-Dilly and Save-A-Lot.

For nearly 100 years, NFI has focused on providing its customers with healthy and affordable food options. That focus on healthy living is now embodied by NFI’s new Health & Wellness Team, which operates a blog forum and two Twitter handles to quickly respond to customer questions about healthy eating and living.

In April, 2014, Crescent Growth Capital worked with Niemann Foods, Marine Bank, Hampton Roads Ventures, and PNC Bank to close a combined $8,000,000 Federal QEI to finance the construction of a new full-service CountyMarket grocery store, convenience store and gas station in Decatur, IL.

The project is expected to create approximately 75 full-time jobs, and provide a full-service grocery store, offering affordable, healthy options to a neighborhood that is a USDA-designated Food Desert (low income and few healthy and affordable food options).

Vowell’s Marketplace

December 27, 2013 by

Vowell’s Marketplace is a Louisville, Mississippi based supermarket chain with 19 locations across Mississippi and Alabama.  Since its first store in 1945, Vowell’s has remained committed to providing great food and a great shopping experience.  Under the leadership Todd Vowell, the third generation of the Vowell family to run the business, Vowell’s Marketplace has spent the past five years upgrading current stores as well as branching out into new markets.

In December 2013, Crescent Growth Capital worked with Vowell’s Marketplace and Enhanced Capital to close and fund a $6MM Alabama State QEI to fund the acquisition and construction of a new grocery store on East South Boulevard in Montgomery, AL.  The new Vowell’s Marketplace store will not only bring back to commerce a long-vacant building, but it will also provide a first-rate grocery option in a USDA-designated Food Desert.  Food Deserts are defined by a combination of low median family income and little or no access to fresh, healthy and affordable food.  These areas typically offer only fast food chains and convenience stores and are therefore in desperate need of healthier alternatives.

The new Vowell’s Marketplace will offer a full-service grocery store that has long been missing from this neighborhood.  This store will offer customers the “destination” meat department Vowell’s has become known for, as well as full produce, dairy-deli, frozen and seafood departments, with competitive prices and superior customer service.

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