The project involved the financing for construction of a new wood pellet manufacturing facility. CEI Capital Management LLC was just one contributor of NMTC to the Aliceville, Ala. wood pellet manufacturing facility. Westervelt Company received $55.5 million in NMTC from WNC and Associates, Wells Fargo Bank N.A., Rural Development Partners and CEI. Wood pellets burn with a carbon footprint significantly less than that produced by burning coal, making it a sought-after renewable energy source. Development of the $71-million facility will create 800 temporary construction jobs and 275 permanent jobs in an area that has a local poverty rate of 27 percent. Once completed, the facility is expected to generate more than $37 million annually in revenue from the sale of wood pellets and is projected to increase business for local timber and trucking companies. As part of a community benefits agreement, Westervelt Company reinvested $110,000 into the community for services such as employment training programs. The facility was completed in 2013.
The NMTC allocation enabled a timberland investment and management company focused on natural and sustainable logging to invest in the project.
The project consist of building a dining hall, learning center, cabin for staff, washhouse for campers, dam repairs, and an upgrade to the health lodge. Sherwood Forest is an independent, non-profit youth development agency, which helps kids from low-income families in the St Louis region escape poverty. It is one of only three organizations across the nation offering month-long residential summer camp experiences and year-round programming.
WVGBC was founded to create quality jobs and grow a new industry utilizing available natural resources and human capital in Greenbrier and Monroe Counties to continue recovery efforts in response to the 2016 floods that devastated the region. WVGBC is developing a 112,746 SF, state of the art cooperage that will produce high quality barrels for distilling bourbon, whisky and rye using Appalachian white oak, a native resource to WV. The barrels will be sold to distillers in and outside the state of WV. A stave mill will supply the cooperage and is located about 20 miles away. The mill, 55% owned by WVGBC, also produces wood flooring. WV has historically been underserved by the NMTC program.
Construction of a new 345,000 SF warehouse and distribution facility in East Point, GA. The expansion is projected to increase their distribution of food to low income communities by 100%. + Construction and equipping of food bank headquarters and distribution facility serving the metro Atlanta and North Georgia region. The new facility will nearly double the space available allowing the organization to double its annual distribution within 5 years. The new facility is strategically located to improve logistics and supply chain management to meet the needs of individuals facing food insecurity in the 29 counties served.
New Markets Tax Credits are helping to revive a rural community in Northeastern Arkansas, providing the necessary capital for a highly distressed river town to turn the corner. Osceola, Arkansas, experiencing economic growth after Enhanced Community Development (ECD) and other Community Development Entities provided federal New Markets Tax Credit and Arkansas New Markets Jobs Act tax credit allocations to build MidRiver Terminal, a freight transport facility. In total, ECD provided $5 million in federal New Markets Tax Credit allocation and $4.8 million in Arkansas New Markets Jobs Act tax credit allocation to this job-creating business. Located on the Mississippi River, Mid-River Terminal supports operations at the state’s largest economic development project, Big River Steel, a $1.3 billion steel mill expected to bring 500 jobs to the highly distressed area.
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.
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 â€“ 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.