Project Type(s): Community and Food Banks
Project Year: 2009
CDE(s): City First
NMTC amount: $6,272,000
Total Project Costs: $6,400,000
Faced with the continuing and growing need for emergency food distribution, Capital Area Food Bank, the largest public nonprofit hunger and nutrition education resource in Washington, D.C., has ambitious plans underway to expand its operations.
At its current facility, Capital Area Food Bank accepts and sorts food donated from grocers, wholesalers, farmers, community food drives, and other sources. With the help of community-based nonprofit partners, the food is then redistributed to those who lack access to adequate nutrition. The facility today contains warehousing operations, administrative offices, and a variety of classes offered to partner agencies.
In order to achieve its goals, the food bank has purchased and is renovating a new facility, which will replace its current facility a half mile from its present location.
When completed, the new building will contain 100,000 square feet of warehouse space and 25,000 square feet of office space that will allow the organization to more than double its capacity. The new space will also enable the food bank to expand its training and administrative
spaces which will enable the group to build its program and services, accept new clients, and increase relationships with community partners.
To help fund this project, Chase’s New Markets Tax Credit Group, in conjunction with Chase’s Intermediaries Lending Group, performed a series of complex financial transactions in order to provide low-cost funding for this project. The New Markets Tax Credit Group made an equity investment of $8.8 million, which, combined with a $14 million bridge loan from Chase’s Intermediaries Lending Group, enabled the food bank to capitalize $16 million in acquisition, pre-development and property maintenance expenses. The bridge loan enables funds spent to date to generate New Market Tax Credits. Chase partnered with City First Bank and Enhanced Community Development, LLC to provide the New Markets Tax Credit financing for this deal.
The new distribution center will help to better address the challenges of reducing hunger and malnutrition in the Washington metropolitan area and drastically decrease food waste and inefficient food distribution. In addition, the project will stimulate the economy by creating 172 construction jobs and engage a contractor, sub-contractors and numerous vendors involved in this multi-million dollar construction project. Within five years of moving into the new facility, the food bank expects to add up to an additional 15-20 permanent jobs.
The food bank is also working to make this project environmentally sustainable. Management is striving to obtain LEED certification and expects to save over $70,000 a year in energy costs.
Additional Project Profiles:In_the_Community_March_April_2011_FINAL
Address: 1525 Seventh Street, Northwest, Washington, DC