The largest peanut shelling plant in the United States is officially open for business. Premium Peanut, located on Barrington Road west of Douglas, has actually been open for 92 days. Friday, however, the company celebrated its grand opening with a ribbon cutting, which was attended by several high-ranking officials, including Gov. Nathan Deal and his wife, Sandra. Several hundred people gathered on the grounds of Premium Peanut for a luncheon and the ribbon cutting.
- Learn more about the event from Douglas Now
Premium Peanut received $20 million in critical New Markets Tax Credit financing from CEI Capital Management LLC and another $3 million in allocation from SunTrust Bank to help expand its operations.
Premium Peanut used the capital to build a shelling facility to benefit a collection of 225 member farms in a cooperative-like arrangement. The peanut processing plant will help the farmers more easily access the market. Through guaranteed contracts and profit distribution, farms will see better overall profitability and smooth out the vagaries of boom and bust cycles that are notorious in the peanut industry.
The shelling facility is located in an an area of Douglas, Georgia with a poverty rate of almost 30 percent and an unemployment rate above 9 percent. The plant will create approximately 100 direct jobs, plus an additional 30 indirect jobs at the storage facilities. The majority of direct jobs will be unskilled positions available to low-income individuals and all will pay a living wage for single adult in the county and include benefits.
“This part of Georgia has what we often find in rural economies. Activity and growth are heavily dependent on natural resource industries as the main drivers,” said CEI Capital Management CEO Charlie Spies. “By supporting a cooperative farming model the New Markets Tax Credit program is doing its job, diversifying a shallow economy to lay the groundwork for a sustainable future.”
Today, Senator Mike Crapo visited the future site of Hemming Cedars, a mixed use building in Rexburg. The facility is a New Markets Tax Credit (NMTC) project being financed by Montana & Idaho Community Development Corporation, which is set to begin construction in this spring.
Hemming Cedars is 220,000 square feet of commercial retail and office space, and an apartment complex. It will provide housing, including married student housing, for nearby BYU-Idaho students, as well as parking for both residents and the downtown commercial district. It will also create 125 construction jobs and 75 permanent jobs.
“The opportunity provided by New Market Tax Credits and our positive working relationship with Montana CDC and Wells Fargo has enabled us to further pursue redevelopment and revitalization of the core of the city. We believe this project will help to meet specific needs of our growing community and be another building block toward positive growth and development for this region,” said Richie Webb of the Hemming Corporation, which is the developer on the project.
Hemming Cedars replaces several smaller, older buildings and is the fourth NMTC project in Eastern Idaho. Wells Fargo was the investor for the $40 million project, and Montana & Idaho Community Development Corporation provided $32 million of its NMTC allocation to make the development possible.
“More than 600 jobs, full-time and construction, have been created by the use of the New Market Tax Credit in Idaho,” said Idaho Senator Mike Crapo, a senior member of the Senate Finance Committee. “While we push to streamline our tax code, we must remember the pro-competitive provisions like this that help us grow the economy and create jobs. Credit goes to the partners to make this project for Rexburg and BYU-Idaho a reality.”
The New Markets Tax Credit was enacted in 2000 in an effort to stimulate private investment and economic growth in low income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies.
“New Market Tax Credits have made a significant difference for Rexburg,” said Scott Johnson, Director of Economic Development for the City of Rexburg. “By leveraging over $50 million in investment in our area, projects like Hemming Cedars are able to create jobs and economic vitality, and provide services that wouldn’t otherwise be here. Working in partnership with Montana & Idaho CDC has made achieving our goals a reality.”
The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities. Today due to NMTC, more than $70 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. Since its implementation, Congress has made several last-minute reauthorizations, making it difficult for practitioners and communities to rely on its availability. However, Congress passed a five-year extension of the NMTC in the PATH Act, which was passed in December 2015.
“Senator Crapo recently supported legislation to make sure the NMTC continues, and is available for job growth and community revitalization in cities like Rexburg, other capital-starved areas of Idaho and nationwide,” said Heidi DeArment, Vice President of Montana & Idaho Community Development Corporation and Vice President of the NMTC Coalition. “The federal NMTC has proven time and again that it is a vital, common-sense financial tool that encourages entrepreneurs and private investors to support development and economic growth in rural neighborhoods and urban communities left outside the economic mainstream.”
About Montana & Idaho CDC
Since 1986, Montana & Idaho CDC, a non-profit organization, has provided financing and consulting that change the lives of individuals and strengthen community prosperity. They have provided $400 million in financing to businesses that create jobs, charge the economy, and make their communities better.
About the New Markets Tax Credit Coalition
The NMTC Coalition is a national membership organization of Community Development Entities and investors organized to conduct research on and advocacy for the New Markets Tax Credit. The Coalition hosts two annual conferences and regularly publishes the NMTC Bulletin. To learn more, please visitwww.nmtccoalition.org.
Contact: Ayrianne Parks
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/senator-crapo-visits-new-nmtc-financed-hemming-cedars-site-in-rexburg-id-300240052.html
SOURCE New Markets Tax Credit Coalition
KPVI 6 (NBC)
Yesterday in Riviera Beach, FL, they cut the ribbon on the new Riviera beach Marina Village. Hundreds showed up Thursday afternoon to get a first look at the new waterfront property.
The $35 million redevelopment project is almost complete and will have an event center, restaurants, hotels, shopping and office space. Officials with Riviera Beach CRA, including NMTC Coalition Board Member Tony Brown, are confident that the project will transform the Riviera Beach waterfront into a vibrant and authentic destination spot for residents and visitors alike, spurring broad revitalization of the surrounding community.
“Today is symbolic and just shows public, private partnership and residents coming together and city officials listening to them,” Riviera Beach City Councilwoman Dawn Pardo said.
You can find a photo album of the event on Facebook.
Several news crews were on hand to take in the event, including CBS 12. Below is their report:
Quick update on the President’s FY 2017 Budget.
The Treasury’s Greenbook – which describes revenue proposals – has not yet been released, but the budget narrative includes the following language calling for a permanent NMTC extension at $5 billion in annual authority:
“To support private-sector partnerships and investments that play a key role in strengthening communities, the President also proposed to expand and make permanent the New Markets Tax Credit, which promotes investments in low-income communities. Under legislation signed into law by President Obama in December, $3.5 billion in New Markets Tax Credits will be available annually through 2019. The Budget would make the program permanent with an annual allocation of $5 billion.”
Kudos to President Obama for his continued support for the NMTC and the CDFI Fund, which also received an increase in the FY 2017 budget.
A special contribution by NMTC Coalition Board Member, Shirley Boubert.
The holiday season is a time when our nation reflects on the bounty we have received over the last year, a time to express gratitude, and also a time to remember those who are less fortunate. Many DC families help serve meals and participate in fundraisers for people in need during the holiday season, many needs remain throughout the year. To help address these issues, the District of Columbia Housing Authority is working to finance community development projects that meet the needs of our city. One of the ways we are doing this is by employing the New Markets Tax Credit (NMTC), which leverages private and public resources for a variety of projects in neighborhoods where access to capital is scarce. A great example of this work is the Conway Center, a new affordable housing, medical center, and job training facility being constructed on Benning Road, in partnership with SOME (So Others Might Eat), US Bank, which invested $7 million in equity raised from federal NMTCs, and other local partners like City First Bank, which provided an NMTC allocation to help with construction of the Conway Center.
The SOME project, using federal NMTC financing, is a prime example of how redevelopment tools are being used east of the river to benefit the community as a whole—building up people and creating stronger community resources for all of our residents. In fact, this new development will provide homes to 200 homeless and very low-income families and individuals, treat more than 10,000 patients per year with medical and dental services, and train some 300 residents with marketable job skills.
The District of Columbia Housing Authority—which is dedicated to providing quality affordable housing to extremely low- through moderate-income households, fostering sustainable communities, and cultivating opportunities for residents to improve their lives— has won several New Markets Tax Credit allocations over the last few years and provided a NMTC allocation through its subsidiary DC Housing Enterprises to support the development of Conway Center.
The NMTC is a unique and flexible financial tool that allows local decision-makers to choose what types of projects would most benefit their community. It provides private investors with a modest federal tax credit for investments made in businesses or economic development projects in census tracts in which the poverty rate is at least 20 percent, or median family income does not exceed 80 percent of the area median. Since it was enacted, the NMTC has helped create over 750,000 jobs nationwide and generated billions of dollars in private investments in projects and communities that likely would never have received injections of patient capital otherwise.
Unfortunately, the NMTC has been historically caught in congressional back-and-forth, with the credit only being authorized on a temporary basis. The NMTC most recently expired on December 31, 2014, after Congress passed a one-year, retroactive extension at the end of the 113th Congress. However, as a final act of the 114th Congress, a five-year extension of the NMTC in the PATH Act was passed and signed into law by the President, which is the longest extension of the NMTC since it was implemented. As a result, community facilities like Conway Center will continue to have access to the capital needed to fill the financing gaps that many projects in low-income communities face.
While many areas of Washington, DC are thriving, ever-growing costs of living make it increasingly difficult for lower wage workers and the unemployed to cope with these challenges. It is not possible for our community’s organizations to address the poverty and homelessness alone, but through thoughtful use of community development resources like the NMTC, we can start to make a difference, by growing job opportunities and training; increasing child care, education, healthcare and healthy food access, and creating more affordable, decent housing.
This holiday season, we are expressing our gratitude by recognizing the work being done by SOME—because we are stronger when we work together. To find out more about So Others Might Eat and how to get involved with their efforts to serve those in need, please visit their website www.some.org.
Shirley Boubert is the NMTC Manager DC Housing Enterprises a Subsidiary of the District of Columbia Housing Authority.
On this day 15 years ago, President Bill Clinton celebrated the signing of H.R. 4577, appropriations legislation that included the provisions of the Community Renewal Tax Relief Act and of course, the New Markets Tax Credit.
Below, find a video of President Clinton’s remarks at a White House ceremony along with the transcript and a photo gallery.
“The budget also makes good on our commitment to help every community share in our Nation’s prosperity. This is a big deal to me, and also to America’s future. About 18 months ago, I began the first of what I called new markets tours, to shine a spotlight on people and places that had been left behind in this long and remarkable recovery. I wanted every American investor to see the potential of these communities and the promise of the people who live there.
I knew that government couldn’t do it alone and that, in fact, we would have to find a way to get more private investment into these communities. But I also knew that business could not be expected to go it alone, that we had to find some way to bring hope and opportunity home to these communities.
Now, at the same time, to be fair, there were people in the Congress who were interested in this who were struggling for some bipartisan consensus to bring free enterprise to parts of America that have been left behind. Among them, in the House, were Representative Talent, who is here, and J.C. Watts and Danny Davis, who represents Chicago but, like me, was born in Arkansas. And there were other groups that were looking at this.
So we all worked together to give you a budget that delivers something that I believe is truly unique and significant. It includes the landmark new markets and community renewal initiative. It’s the most significant effort ever to help hardpressed areas, both rural and urban, to lift themselves up through private investment and entrepreneurship. It is a triumph of bipartisanship. And again, I want to thank those whom I just mentioned—especially you, Mr. Talent—and I want to thank the Speaker of the House, Dennis Hastert, who went to Chicago with me and Reverend Jackson and without whom we could not have passed this important initiative.
Here’s what it does. First, it establishes the first-ever new markets tax credit. It sets up a new market venture capital initiative. Now, what does all that mean? It basically means if we can get people to put money into really depressed areas, all the rest of America will share part of the risk by giving them a tax credit to do it. And it’s a darn good investment.
We also expanded and strengthened 40 empowerment zones; that’s the program our administration has run for the last 8 years under the able leadership of Vice President Gore. And we created 40 renewal communities across our Nation; that’s an alternative designed essentially by Republicans in the House, with the Democrats who worked with them. And we decided that since nobody knows how to do this, we ought to try in 40 places with each approach and see which one works better, and see what works better with each approach. It’s a terrific idea, and I only wish I was going to be around when all the results come in. [Laughter]
But over the next—sometime over the next, I’d say, 2 to 4 years, probably more like a 4 year period, we’ll actually have evidence of what happened in the 40 empowerment zones, what happened in the 40 renewal communities. That Congress will take the evidence and, I hope, as a result of that evidence, will then enact legislation that will permanently establish a framework for always encouraging America to invest in the areas that otherwise would be left behind.
And if, like me, you’ve spent a lot of time in the Mississippi Delta or Appalachia or innercity neighborhoods or on Native American reservations, you doubtless have concluded, as I have, that intelligence is pretty equally distributed throughout this country and so is the work ethic. But we have not yet equally distributed opportunity and access to capital. We’re trying to figure out how to do it. This is a truly historic day, and we did it together, and I am very grateful. Thank you.”
President Bill Clinton, December 21, 2000
The New Markets Tax Credit Coalition, a national membership organization of Community Development Entities, trade associations, investors, and businesses, commends Congressional leaders for assembling the Protecting Americans from Tax Hikes Act (PATH Act) and including a five year extension of the New Markets Tax Credit.
Since its inception, the federal New Markets Tax Credit (NMTC) has achieved great results, creating nearly 750,000 jobs in economically distressed rural and urban communities and leveraging almost $75 billion in capital for businesses, community services, and facilities.
The extension included in the PATH Act will ensure the delivery of more than $30 billion in new investments in businesses and projects in distressed neighborhoods and towns. Communities will put these dollars to work, creating tens of thousands of jobs through nearly 2,000 projects, including: brand new hospitals in medically underserved rural areas; rejuvenated blighted urban corridors; revived manufacturing activity in regions where the last plant closed decades ago; and tens of thousands of square feet of newly constructed or renovated space nonprofit service providers, schools, daycare centers, and other important community facilities.
Without the NMTC, recovering communities would lose the best federal tool for jumpstarting local economies, creating jobs and providing services. The NMTC Coalition urges Congress to approve the PATH Act.
FOR IMMEDIATE RELEASE
NMTC Leaders Applaud 5-Year Extension of Community Development Tax Credit
WASHINGTON, D.C.—Late last night, Congressional leaders and the White House came to an agreement on a tax extender deal, which includes permanency for a few provisions and two- to five-year extension for other expired or expiring tax credits. The New Markets Tax Credit (NMTC) received a long-term extension of five years (2015-2019) at its current level $3.5 billion annually. The House and Senate still need to approve the measure.
“The federal New Markets Tax Credit has achieved great results since its implementation, creating nearly 750,000 jobs in economically distressed rural and urban communities and leveraging almost $75 billion in capital for businesses, and community services and facilities,” said Bob Rapoza, spokesperson for the NMTC Coalition. “The strong bipartisan support for the federal NMTC in both the House and Senate is a testament to its success in delivering much needed investments for community revitalization projects.”
Congressional champions also applauded the extension of the NMTC:
“The New Markets Tax Credit Program has a history of success nationwide and this extension is a huge step in the right direction. In Missouri, the NMTC has made a real difference in economically distressed communities, including financing for the first new grocery store in the Pagedale community in 40 years, expanding and helping improve the operation of a number of manufacturing businesses, and filling in the funding gap for the construction of 65 home ownership units in a St. Louis neighborhood with very high unemployment.”
—Senator Roy Blunt (R-MO), who introduced New Markets Tax Credit Extension Act of 2015 (S. 591) on February 26, 2015, a bill which would make the NMTC permanent. Senator Blunt was the lead sponsor of a similar bill in the 113th Congress as well.
“This long-term extension of the New Markets Tax Credit (NMTC) Program is a major win for community revitalization, job creation, and economic development throughout New York State. The NMTC Program has already provided critical funding to important projects throughout New York, like the expansion of Roswell Park Cancer Institute’s Clinical Sciences Center in downtown Buffalo. Now, with this five-year extension, communities from Rochester to Albany and New York City to Niagara Falls can continue to access this important financing tool for years to come.”
—Senator Chuck Schumer (D-NY), who is the lead Democratic cosponsor on S.591.
“The New Markets Tax Credit has leveraged an unprecedented level of investment to low income communities, helping revitalize blighted areas with high levels of poverty and unemployment. In Maryland, I’ve seen it make a real difference, creating over 7,000 full-time jobs and more than 25,000 construction jobs over the past decade, all while expanding local business opportunities and community services. I am pleased to see the long-term extension for this credit, because the New Markets Tax Credit helps communities, helps people, and I am all for that.”
—Senator Ben Cardin (D-MD), who is an original and lead cosponsor of S. 591.
“The New Markets Tax Credit is a powerful tool that uses public-private partnerships to revitalize economically stressed areas and encourage job creation. In Ohio alone, the tax credit has helped create more than 30,000 construction jobs and 12,000 full-time jobs. I’ve seen first-hand the positive impact the projects financed through the NMTC program have in turning around struggling neighborhoods, and I am pleased that extending this tax credit means more communities will benefit.”
—Congressman Pat Tiberi (R-OH), who introduced New Markets Tax Credit Extension Act of 2015 (H.R. 855) in the House on February 10, 2015, which would make the NMTC permanent.
“The New Markets Tax Credit (NMTC) spurs economic development, encourages private investment, and creates jobs. This important and popular initiative has generated more than $70 billion in capital for projects in economically stressed areas across the United States. It produces substantial investment in struggling communities that otherwise would be ignored. That is why I remain such an outspoken supporter of the program. In my opinion, extending the NMTC is a proven tool to help rebuild America and create jobs.”
—Congressman Richard E. Neal (D-MA), who is the lead Democratic cosponsor on H.R. 855.
“We care about making sure smaller cities and rural areas, like the areas we represent, have access to the capital and investments necessary for their community and residents to thrive. It’s only fair they have access to the resources they need and the NMTC is helping to fill this gap. Look no further than Hornell, New York to see the real and positive impacts this program can have right here in our back yard. With the support of local residents and businesses, the Y conducted a successful fundraising campaign, but they were still nearly $2 million short of the total project cost of $6.2 million. NMTC financing filled the gap, making the new facility a reality. We were glad to see the project get underway and hope there will be many more like it in the future.”
—Congressman Tom Reed (R-NY), an original and lead cosponsor of H.R. 855.
NMTC Community Development Leaders Meet on Heels of Tax Extenders Legislation Introduction in the House
Contact: Bob Rapoza, firstname.lastname@example.org, (202) 393-5225
WASHINGTON, D.C.— Today and tomorrow, the New Markets Tax Credit Coalition is holding its Annual Conference, drawing community development experts from around the country. The conference will take place at the Hotel Monaco and includes keynotes from Senator Ben Cardin (D-MD), Congressmen Richard Neal (D-MA) and Tom Reed (R-NY), as well as CDFI Fund Director Annie Donovan. The conference takes place just one week before the 15th anniversary of the bipartisan Community Renewal Tax Relief Act of 2000, which established the NMTC, was signed into law by President Bill Clinton.
“The NMTC has achieved great success since its implementation, creating nearly 750,000 jobs in economically distressed rural and urban communities and leveraging almost $75 billion in capital for businesses, and community services and facilities,” said Bob Rapoza, spokesperson for the NMTC Coalition. However, the credit has lapsed in and out of authorization despite its accomplishments. “Presently, lawmakers are working to pass a bill to extend a package of tax provisions that expired at the end of 2014, including the NMTC.”
The conference will serve as a forum for attendees to learn about the new leadership in the House, and discuss policy and regulatory plans for the NMTC. Attendees will meet Congressional champions of the NMTC in addition to networking with industry peers. Attendees will also have the opportunity to visit their respective Members of Congress during a Lobby Day this afternoon, and the Coalition will host a Capitol Hill Reception in the evening from 5:30 pm to 7:00 pm in room B-369 of the Rayburn House Office Building.
On the second day, the Coalition will hold its Annual Business meeting where its newly elected leadership will be announced, including: Robert Davenport of National Development Council, who will serve as President; Heidi DeArment of Montana Community Development Corporation, who will serve as Vice President; Jose Villalobos of TELACU, who will serve as Treasurer; and Kermit Billups of Greenline Ventures, who will serve as Secretary. Finally, the conference will wrap-up with panels featuring legal and federal agency experts, as well as leading NMTC investors.
“These two days are an important opportunity for the NMTC Community to reflect on the success over the past decade and a half, discuss best practices for the industry, and make plans for the future,” said Rapoza.
About New Markets Tax Credit Program
The New Markets Tax Credit was enacted in 2000 in an effort to stimulate private investment and economic growth in low income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities. Today due to NMTC, more than $75 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico.