Rural King used the NMTC to acquire an 800,000 sq. ft. building that was renovated to allow for expanded operations in Waverly, Ohio. The new facility is a former cabinet making operation which sat vacant for years prior to Rural King bringing a distribution facility to the market. Rural King, founded in 1960, is a family-owned farm supply store based in Mattoon, Illinois which currently has 119 stores across 13 states.
The Project enables Rural King to grow into new regions and open additional stores, creating widespread direct and indirect impacts for rural communities. The Company is making good faith efforts to include vendors and suppliers from the local low-income community and women and minority owned businesses. The project will also allow expanded fulfillment capabilities for as many as 60 new retail stores to be opened over the next five years.
Located in an area with a poverty rate of 22.2% and an unemployment rate of 9.4% (1.13x the national average), the project created 75 new, full-time jobs, retain 75 full-time jobs, and create 30 construction jobs. Over 50% of these newly-created and retained jobs have low barriers to entry and will be readily available to low-income persons. Rural King will work with local organizations, such as the Community Action Committee (“CAC”) of Pike County, to recruit and train residents of the low-income community. The CAC’s Workforce & Business Development division provides career guidance, job seeking, skill development, training and other programs for youth and adults, including unemployed and underemployed populations. Rural King evaluated several sites for the new distribution center and was considering the acquisition of a facility in another state with a lower purchase price but was not located in a low-income community.
NMTC financing enabled the project to be undertaken in the low-income community, bringing costs in line with the more competitive location. The NMTC financing helped to overcome the significant capital outlay and additional training costs. The NMTC net benefit allows Rural King to create jobs, generate economic impact, and provide shopping opportunities to residents in a severely distressed rural community with high poverty. Ohio Community Development Finance Fund provided additional NMTC allocation of $14,000,000 and Valley National Bank acquired the New Markets Tax Credits.