July 9, 2009
The National Development Council has closed $28.7 million, or roughly one third, of our Round VI New Markets Tax Credit Allocation, providing financing for four important community and economic development projects in three states.
Community Counseling Center
The woman-operated Community Counseling Center (CCC) in the medically underserved community of Alton, IL will expand outpatient mental health services to the city’s low-income population. This project is particularly important because the State of Illinois has identified community health organizations as the primary vehicle for providing mental health services, moving away from the old model of state-run mental institutions. The expansion would not be feasible without NDC’s $5 million Qualified Equity Investment, which was closed with investor partner USB CDC on June 11th. The new $6.9 million facility will also allow the CCC to better respond to the state’s need for mental health services and add 30 permanent mental healthcare professionals. Construction is expected to begin later this month.
Abilene Life Sciences Accelerator
The Abilene Life Sciences Accelerator(LSA) in Abilene, TX is a key part of the city’s efforts to build a vibrant biotech industry in the regional economy. The Center is a joint effort between the Local Development Corporation and Texas Technical Institute and will provide six biotech incubator spaces and a vivarium for companies that are working to take raw scientific discoveries made at the university’s Center for Immunotherapeutic Research and transform them into marketable products. The project is also expected to help attract leading scientists to the Texas Tech School of Pharmacy, bolstering the region’s knowledge base. NDC’s $10 million New Markets Tax Credit investment with investment partner JP Morgan Chase leverages a $7 million loan from the Development Corporation of Abilene (DCOA) funded by a ½ cent economic development sales tax. NDC has been providing technical assistance to the City of Abilene and DCOA for over twenty years. The LSA is the second NMTC transaction closed in Abilene.
Tom Green Library
The Tom Green Library in San Angelo, TX will more than triple the town’s library space, transforming a vacant department store into a 90,000 square foot, state-of-the-art library. The new facility will more than double the number of computers available to the public and will greatly expand space for children’s programming and collections. A coffee shop and book store in the building will provide a consistent revenue source for the library. NDC has provided two New Markets Qualified Equity Investments totaling $13 million that facilitated the construction of the Library. Wells Fargo CDC was the equity investor for both QEI’s.