New Markets Tax Credits

Los Barrios Unidos – Family Health Center

December 22, 2015 by

The mission of Los Barrios Unidos Community Clinic (LBUCC) is to proudly provide quality care to all people, creating a safe, affordable, and accessible healthcare experience. In 1972, the residents of several West Dallas neighborhoods united to open a community clinic in a portable building to serve a population disenfranchised from the economic and social services of the city due primarily to language and cultural differences.

LBUCC has flourished tremendously since its opening. 93% of LBUCC’s 21,000 patients are Hispanic and 74% are uninsured. Nearly 30 clinicians provide 70,000 patient visits each year. Patients are drawn from all parts of Dallas County although West Dallas, Oak Cliff and Grand Prairie are the core market areas. LBUCC proudly provides top-notch care to all people regardless of race, ethnicity, place of residence or even the ability to pay.

There is no shortage of need for affordable primary care in Dallas County, which is the second largest Metropolitan area in Texas in terms of size and population , and ranks ninth in the nation. 18.7% of Dallas County’s 2,368,139 residents or over 443,000 individuals live below 100% of the Federal Poverty Level (Census 2010).

In late 2014, Los Barrios Unidos engaged Crescent Growth Capital to facilitate the NMTC financing of its new Family Health Center, a new 21,400 square foot clinic offering 15 exam rooms, 3 open Team Stations with 4 modular workstations each, a large ground floor laboratory, a phlebotomy area, a massive 75-seat waiting area and plenty of storage.

In December, 2015, LBUCC and CGC closed on a $7MM federal NMTC financing, providing the funding necessary to construct the Family Health Center, using NMTC allocations provided by Primary Care Development Corporation and Capital One Bank. The NMTC subsidy drastically reduced LBUCC’s cost of capital, greatly reducing the ongoing debt burden for a non-profit FQHC whose patient base is nearly 3/4’s uninsured, while creating 24 new FTE jobs in one of Dallas’ most impoverished areas.

Terry Reilly Health Services

December 10, 2015 by

Forty-two years ago, Terry Reilly and his wife Rosie Delgadillo Reilly arranged with Dr. Clarence McIntyre for voluntary medical services for the migrant farm workers’ children who were being tutored at their home on Nampa’s north side. The experience helped to open the eyes of many local, regional, and national leaders to the plight of the large medically underserved population in the Treasure Valley area. Federal Public Health Services grant resources and strong local advocacy enabled the Reilly’s to found Community Health Clinics, Inc. as a vehicle to provide healthcare services to those who need it most. Today, the Federally-Qualified Health Center operates under the dba Terry Reilly Health Services (“TRHS”), and operates with the Mission of providing affordable, comprehensive health care to everyone, especially those facing barriers elsewhere, such as the uninsured, migrant and seasonal farm workers, and the homeless.

Despite the fact that 60% of TRHS’ patients are at or below the poverty level, just 28% are on Medicare/Medicaid, a discrepancy indicative of a State with one of the most poorly-ranked Medicaid programs in the nation. Nearly two-thirds of the 11,000 patients TRHS serves annually have no health insurance at all, presenting a significant fiscal challenge for the non-profit FQHC. Despite this apparent imbalance between services provided and service revenue received, TRHS has continued to grow both its patient encounters and its range of services.

In late-2014, Terry Reilly Health Services engaged Crescent Growth Capital to facilitate a NMTC financing that would provide the necessary working capital to allow the Federally-Qualified Health Center (“FQHC”) to provide an ever-expanding range of health services to Idaho’s most indigent populations. In December, 2015, TRHS and Crescent closed on a $6,000,000 NMTC facility, with allocation provided by Hampton Roads Ventures, and new markets tax credit investment provided by Capital One. The working capital facility will provide the FQHC with some much-needed operating capital to continue to serve the people of Nampa, Boise, and beyond.

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.

Omaha Early Learning Center – Gateway Project

May 6, 2015 by

Inspired by the Educare Learning Network, the Omaha Early Learning Centers (“OELC”) provide early childhood education programming to the most needy children in Omaha – a population that has grown significantly over the past decade. In the ten years ending in 2011, the Midwest saw a 40% increase in childhood poverty, the greatest such increase in the US. Studies have shown that children living in poverty start school 2-3 years behind their peers in terms a educational development, and are seven times less likely to graduate high school. Furthermore, a November, 2009 study concluded that every dollar spent on early childhood education equates to a 7-10% rate of return: poverty-stricken children that enroll in early childhood development programs are better prepared when they enter the school, more likely to graduate from high school, more likely to earn a higher wage, and are less likely to resort to public aid, or turn to crime.

In January 2014, Congress appropriated $500M to expand the number and quality of early learning opportunities for infants and toddlers through the Early Head Start – Child Care Partnerships grant program. OELC, in partnership with the Buffett Early Childhood Fund, found itself in a unique position to combat Omaha’s alarming rise in poverty by leveraging these Federal dollars into new early childhood programming. That program needed a home, though, so in mid-2014, OELC engaged Crescent Growth Capital to facilitate the NMTC-financing for two new early childhood development facilities in Omaha.

In May 2015, OELC, the Buffett Early Childhood Fund and CGC closed on a stacked $10.26M State/$3M Federal NMTC financing to construct the Gateway ELC, utilizing NMTC allocation provided by Enhanced Capital. The new 16-classroom facility will include a full kitchen and multi-purpose room, that will serve up to 96 infants and toddlers, and 68 pre-kindergarten students. The project is anticipated to create 38 full time jobs, and an additional 10 jobs for contracted service providers. Using the Educare model as its inspiration, the Gateway center will focus enrollment on the most impoverished children first, thereby maximizing its impact on those most in need of help.

Cloverleaf Cold Storage

April 12, 2015 by

Founded in 1952, Cloverleaf Cold Storage is a family-owned provider of public and contract storage for the meat processing and packaging industries. With 15 refrigerated warehouses and nearly 65 million cubic feet of food storage space nationwide, Cloverleaf is consistently ranked by the International Association of Refrigerated Warehouses as one of the 25 largest operators in the world.

In early 2015, Cloverleaf kicked off plans to open a 235,000 sq. ft. facility that would provide refrigerated warehouse space and added distribution capacity to the adjacent Farmland processing plant, and engaged Crescent Growth Capital to help them solicit, structure and close a NMTC funding to finance the $30MM facility. In April, 2015, CGC and Cloverleaf closed a stacked NMTC financing utilizing $10MM of Illinois State NMTCs and $14MM of Federal NMTCs provided by Enterprise Bank & Trust, Capital Impact Fund and JP Morgan Chase provided.

The new facility, Cloverleaf’s first in Illinois,is expected to create up to 150 new jobs and will allow for further expansion at the Farmland plant increasing food distribution capacity in a USDA-designated Food Desert. The NMTC loans not only provide Cloverleaf with low-cost financing, but has the potential to accelerate Cloverleaf’s long-term expansion plans, which would create up to 50 additional jobs at the Monmouth facility.

MAAS Aviation Services

January 29, 2015 by

For over 30 years, MAAS Aviation has delivered world class standards in aircraft exterior refinishing to over 200 aircraft operators worldwide. MAAS Aviation also provides aircraft painting services to OEM manufacturers and is regarded as one of the leading aircraft painting companies in Europe with a reputation for high quality and reliability.

MAAS Aviation was recently selected by Airbus to be its contract provider of paint services for all new Airbus aircraft built on the Airbus Final Assembly Line Campus at the Brookley Aeroplex in Mobile. MAAS’ operations at the Brookley Aeroplex also include a strategic partnership with ST Aerospace, the international leader in aircraft maintenance, repair and overhaul (“MRO”) services.

In October, 2014, MAAS engaged Crescent Growth Capital to help the Irish company attract, structure and close a New Markets Tax Credits financing to construct the first of two Airbus Paint Bays at Brookley Aeroplex. In January, 2015, MAAS and CGC closed on a $10MM Federal NMTC funding, utilizing NMTC allocation provided by MuniStrategies, and NMTC equity and leverage debt provided by First NBC Bank.

The project will create 34 direct FTE jobs at a facility capable of painting all Airbus aircraft manufactured at Airbus’ $300 million Final Assembly Line. In addition, MAAS will also offer expert painting services to aircraft operators and to customers of the global leading aircraft maintenance service provider, ST Aerospace. All employees will be offered extensive formal on?the?job training in accordance with both the company’s established training routines and the highest international standards.

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