Vallarta Supermarkets (Vallarta) was founded in 1985 by the Gonzalez family, and remains a privately owned, Latino-owner/operator of grocery stores throughout California. Over its 30+ year history, Vallarta has been committed to bringing fresh foods, employment opportunities, and community services to the Hispanic community, a niche that has not been adequately addressed by the big chain stores. The current project, Vallarta Fresno, closed in May 2016, and the project is now under construction. The total QEI was $13 million and included two Calif.-based CDEs. QLICI proceeds will be used for the construction, fit-out and operational site launch of the Vallarta Fresno store.
Without NMTCs, several key aspects of this project would not have been possible. First, the NMTCs will allow Vallarta to offer ten specific community benefits for the Fresno community including: 175 new permanent jobs accessible to local low income people in a community suffering from 18 percent unemployment, at least $70,000 of scholarship awards programs for high school students enrolling in a four-year college degree program, and a new Vallarta store that includes a minimum of 40 percent of its products that are high quality and affordable fresh foods accessible to low income Latino families. Second, the rates and terms for the financing would not have been possible without the NMTCs. Favorable terms include a weighted QLICI interest rate of 2.9 percent where the QLICIs are not secured by any real property, and without any specific debt service coverage requirement. Third, the NMTCs allow a notable Latino-owned business to continue its training and skills development programs for its 4,500 FTE (at an estimated cost of $450,000 per year) and to continue their community impact programs including food donations, annual toy drives, Latino advocacy, donations to local businesses, financial support for low-income people suffering from muscular dystrophy and kids with cancer, autism and diabetes.