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Portfolio Highlights: New Markets Tax Credits

Portfolio Highlights: New Markets Tax Credits

Helping meet basic needs and create economic opportunity.

U.S. Bancorp Community Development Corporation (USBCDC) is the most active New Markets Tax Credit (NMTC) investor in the country, both in terms of dollars invested and transactions closed, with more than $5.3 billion of NMTC equity committed in support of businesses and real estate development across the United States. We are deeply dedicated to economic revitalization and work diligently to embody the goals of the NMTC program.

TERRA NW Northwest Alaska

(Click to enlarge)

Photo courtesy of: GCI

TERRA Network
Northwest Alaska

GCI, the largest telecom company in Alaska, is expanding its TERRA network to provide broadband Internet access in west and northwest Alaska. The project is bringing terrestrial broadband Internet access to remote villages for the first time, improving public safety, health care, and education.

Three rounds of NMTC funding has come from a variety of partners, including USBCDC and Community Development Entities Alaska Growth Capital BIDCO, Inc.; CNB Economic Development Company; Lower Brule Community Development Enterprise; Travois New Markets, LLC; USBCDE (U.S. Bank’s CDE); and Waveland Community Development, LLC.


Blanchet House of Hospitality Portland, Oregon

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Rendering courtesy of: Blanchet House of Hospitality

Blanchet House of Hospitality
Portland, Oregon

In 2011, U.S. Bank and Blanchet House of Hospitality, a nonprofit social services charity that has provided food, clothing and shelter to Portland’s homeless and working poor for nearly 60 years, finalized financing for the construction of a new $13 million facility. At the time, Blanchet’s current facility was over 100 years old, in extremely poor condition and is too small to meet current needs. The new LEED Gold four-story facility, which opened in September 2012, vastly improves Blanchet’s ability to serve meals and provide housing.

U.S. Bank provided $3.7 million in commercial loans and USBCDC committed more than $3.6 million of NMTC equity in partnership with National Community Fund I, LLC, a subsidiary of United Fund Advisors. U.S. Bank also made a commitment pledge for the new building’s rain-water collection system, one of its many sustainability features. Additional funding came in the form of from a grant from the Portland Housing Bureau. Blanchet House raised the balance of the funds through a capital campaign.

Pullman Park Development Chicago, Illinois

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Rendering credit: Bruce Bondy of Bondy Studios

Pullman Park Development
Chicago, Illinois

In 2011, construction began on the first phase of Chicago’s Pullman Park retail development with a financing package from U.S. Bank. The development is creating jobs, expanding access to basic retail goods and services in an underserved area and increasing the tax base on 52 acres of vacant, former industrial land on Chicago’s Southside.

USBCDC committed more than $7.5 million of NMTC equity in partnership with two Community Development Entity partners: MBS Urban Initiatives CDE, LLC and RBC Community Development, LLC. U.S. Bank also provided a $9.5 million loan to the developer, Chicago Neighborhood Initiatives (CNI), an independent nonprofit formed to help redevelop some of Chicago’s most underserved neighborhoods.

U.S. Bank’s commitment allows CNI to complete the infrastructure work required for the development’s $39 million first phase. Future phases will include neighborhood retail stores, a housing development, a recreation center and a 10-acre park, generating over 1,000 retail positions and 700 construction jobs.

Commonwealth Dairy Brattleboro, Vermont

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Photo courtesy of: Commonwealth Dairy

Commonwealth Dairy
Brattleboro, Vermont

Commonwealth Dairy – a joint partnership between Ehrmann AG, a German family-run company, and Commonwealth Yogurt – looked throughout New England for a location to open a new $22 million yogurt plant. NMTCs were the lynchpin that made the development possible in Brattleboro. The company opened its new facility in 2011, primarily to produce private-label yogurt for supermarket chains, promising to buy 100 million pounds of Vermont milk yearly and provide jobs. The company has also launched a hormone-free regional brand under the name of Green Mountain Creamery at the site. It aims to return 5 percent of profits to the Vermont farmers who supply the milk.

The Massachusetts Housing Investment Corporation and Coastal Enterprises each committed NMTC allocation authority to finance the dairy. USBCDC served as the NMTC investor, committing nearly $8 million of NMTC equity.

The Basics of NMTCs

NMTCs encourage the investment of private capital in urban and rural low-income communities. Here’s how they work.

A Dedicated Team

Our experienced professionals are experts in NMTCs and can help provide project financing to meet a range of needs.

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U.S. Bank and its representatives do not provide tax or legal advice. Each tax and financial situation is unique. Consult your tax and/or legal advisor for advice and information concerning a particular situation.

U.S. Bank is not responsible for and does not guarantee the products, services or performance of its affiliates and third parties.

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