Throughout the late 19th and early 20th century, downtown Durham, North Carolina was a thriving manufacturing center engaged in the tobacco and textile industries. However, as both industries declined in the 1960s, so too did the vitality of downtown Durham. Steady disinvestment over the years led to physical deterioration of the neighborhood, and the once vibrant factories sat vacant. Golden Belt was a textile factory that produced pouches for Bull Durham loose leaf tobacco and then, paper cigarette cartons. When tobacco moved out, the Golden Belt complex was donated to the Durham Housing Authority (DHA) who in turn, sold a majority of the facility to Scientific Properties, LLC, a North Carolina-based real estate and development company, in 2006. Scientific Properties planned to convert the historic site into a mixed-use commercial, arts, and residential space, with the potential to spark additional revitalization of the neighborhood, but was unable to secure $12 million in gap financing needed to complete the $26.3 million project. In 2008, Scientific Properties approached Self-Help Ventures Fund, a community development entity based Durham for a financing solution. Self-Help recognized the project’s potential to anchor the area’s revitalization, but at the time had only $8.2 million in NMTC financing remaining in a blind pool − not enough to bridge the $12 million gap − so they turned to Wachovia (now Wells Fargo) to borrow $3.9 million in NMTC allocation to secure the financing needed to make the Golden Belt Complex project viable. The $12 million in total NMTC financing enabled Scientific Properties, LLC to rehabilitate a deteriorating factory; generate 140 construction related jobs and 400 permanent jobs; put six warehouses back into use; and provide affordable commercial and office space for local businesses and non-profits that serve community residents, including the Center for Employment Training. Additionally, the Golden Belt Complex provides 35 artist studios, an art gallery, 37 loft apartments, office space, a café, and multiple ground floor retailers.
Approximately 105 jobs created, comprised of 30 fullâ€time and 75 temporary construction jobs at a wind turbine manufacturer.
Construction and development of a new manufacturing facility that will produce consumer products and employ local residents that have a barrier to finding meaningful work.
Monogram Snacks Martinsville, LLC, a wholly owned subsidiary of Monogram Food Solutions, LLC, received a New Markets Tax Credit allocation of $8 million from Rural Development Partners as part of a financing package for a major expansion project at its Martinsville, Virginia production plant. The overall expansion will cost $61.7 million, add 56,000 square feet, renovate space in the original production plant and create more than 250 full-time equivalent jobs.
Hydrogenated Hydrocarbon Resin Unit
Burnsville’s 2013 unemployment rate of 35.4% was more than three times the national average. During the 1990’s, Tishomingo County lost approximately 2,500 manufacturing jobs, primarily in furniture and manufactured housing businesses. As the economy began to add back manufacturing jobs in the 2000’s, the Great Recession hit and saw unemployment rise rapidly. The area has faced challenges creating economic opportunities for residents. Due to low educational attainment levels, the county was designated as a low education county (25% or more of residents 25 to 64 years old had neither a high school diploma nor GED in 2000) and one out of every five residents is below the poverty threshold levels. Mississippi Silicon is changing those statistics. The company built and is operating a $200 million silicon metal production facility in Burnsville, Mississippi with the help of RDP’s $20 million NMTC allocation. Silicon metal is consumed throughout the world in a wide variety of applications including the aluminum, automotive, chemical, semiconductor and solar industries. As a company that will be producing in excess of $100 million in product annually, MS Silicon will require large quantities of raw material inputs for its manufacturing processes. On average during the first 10 years of operation, the company will spend over $52 million on raw material inputs such as quartz, coal, wood chips, electricity, and electrodes – materials that serve as the building blocks for the successful production of high grade silicon. While some of these materials (e.g. electrodes) will be sourced internationally, most will come directly from small towns and regions in the Southern and Midwestern United States. Mississippi Silicon has committed to provide at least 200 jobs for an area with high unemployment rate and few alternative employment opportunities. Additionally, the investment in Mississippi Silicon brings necessary infrastructure to the Burnsville Industrial Park. Community leaders hope the infrastructure attracts additional business, industry and jobs to the area. Without the NMTC, this project would not have gone forward.
AGCO is a leading global manufacturer of agricultural equipment, offering a full line of tractors, combines, hay tools, sprayers, and forage and tillage equipment, which are distributed in more than 140 countries worldwide. In 2011, AGCO announced plans to expand the company’s Jackson, Minnesota manufacturing facility to produce high-horsepower, wheeled, row-crop tractors, which had previously been produced in France. Jackson is a small, rural, economically distressed community with a history of outmigration. Between 2000 and 2010, the town lost 9 percent of its population. Jackson is not without assets though. It is situated in an area of high agricultural production and is conveniently located at the intersection of Interstate 90 and U.S. Highway 71, cutting down the transportation time of getting its products to market, making it an ideal location for AGCO to expand its operations. Jackson welcomed AGCO’s expansion in its rural community and the jobs and tax base it brought back to the United States. To help make the expansion project a reality, Midwest Minnesota Community Development Corporation provided $14.4 million in NMTC financing, which, combined with local and state incentives, covered the $16.5 million cost needed for construction. Opened in June 2012, the expanded 75,000 square foot manufacturing facility includes new machinery and equipment, an assembly line extension, and additional warehouse space. The expansion also includes a 17,000-square-foot, state-of-the-art visitor center to give dealers and their customers the opportunity to see AGCO’s workmanship. More than 2,700 people have toured the Intivity Visitors Center since it opened to the public. The $16.5 million project created over 200 well-paying jobs in Jackson and is spurring additional development in the community. Plans are in place for rehabilitation of a nearby hotel and the construction of a new hotel and restaurant, creating an estimated 95 new jobs.
A new port on the Mississippi
Hamtramck Recycling LLC is a family owned green recycling business located in Hamtramck, Michigan, which currently employs 11 people. In 2012, Hamtramck Recycling encountered increased demand from local manufacturers interested in recycling their waste, rather than depositing it in landfills. To accommodate the increased demand and increase capacity, Hamtramck sought to purchase and renovate an old waste-transfer building. With support from the State of Michigan, and $4 million in NMTC financing provided by the Michigan Magnet Fund, a Michigan based Community Development Entity, Hamtramck Recycling is now in the process of transforming the vacant building into a new, state-of-the-art, 32,000 square foot recycling & transfer center. Expected to be operational in 2013, the facility will sort out paper, plastics, Styrofoam and other office waste products, as well as light industrial metals, and turn them around into usable recycled materials. The modernized recycling facility will also include an assembly line that permits the use of such technology as overhead cameras to examine truck contents upon entry to price its recyclable mix, and will use automated equipment to permit easier sorting and separation of materials. Hamtramck Recycling also intends to build a new transfer station and tailor it to accommodate Industrial Dry Waste, recovering recyclable materials from the waste stream.