GREENVILLE, S.C., June 29, 2016 /PRNewswire/ -- Greenville New Markets Opportunity II (GNMO II), a Community Development Entity (CDE) managed by taxadvantagegroup and Greenville Local Development Corporation in Greenville, S.C., has deployed $73 million of New Markets Tax Credit (NMTC) allocations for eight South Carolina businesses and non-profits over the past 18 months. The funds supplement $194.5 million in total combined project costs. Upon stabilization, GNMO II's portfolio is projected to support 1,815 quality jobs; serve 5,230 clients through its nonprofit investments; and help create or redevelop nearly 930,000 square feet of new and improved commercial and industrial real estate.
The federal NMTC program, aimed at stimulating investment and economic growth in low-income communities (LICs), permits taxpayers to receive a tax credit against federal income taxes for making equity investments in community development entities (CDEs), such as GNMO II. Those CDEs in turn use the capital raised to make investments in LICs. LIC demographics of GNMO II's current investment portfolio consist of poverty rates as high as 66.6%, median family income as low as 14.24%, and unemployment rates as high as 23.7%. In addition, investments are located in Appalachian Regional Commission Distressed Areas, FEMA Disaster Areas, and Food Deserts. The allocation is provided by the U.S. Treasury Department's Community Development Financial Institutions Fund.
GNMO II's mission is to offer capital to organizations that either create and sustain quality jobs and/or support health and wellness outcomes. The eight projects GNMO II awarded NMTC allocations to are:
Legacy Charter School (Greenville, SC): $13.7 million
Greenco Beverage Company (Greenville, SC): $8.3 million
Limehouse Produce (North Charleston, SC): $9 million
Sweet Street Desserts (Greenville, SC): $10 million
TDC Cutting Tools (Seneca, SC): $7 million
OTO Development/AC Hotel (Spartanburg, SC): $10 million
Claussen Bakery (Greenville, SC): $5 million
Upward Star Center (Spartanburg, SC): $10 million
GNMO II Operating Officer and taxadvantagegroup (tag) President Tammy C. Propst, said, "GNMO II invests in projects that are both financially sound and significant assets to their community at large. One of our investment goals is to be a catalyst for change, investing in first-mover projects in distressed neighborhoods."
An example of this is Greenco Beverage, which is building a new distribution center in a long neglected area of Greenville called the Poinsett Corridor. With a total project cost of $11.5 million, it is the first major investment in the Poinsett Corridor in over 40 years. Aside from supporting quality jobs, Greenco – like many GNMO II investment projects – will establish an apprenticeship program with Apprenticeship Carolina™ and the local community college with a goal of providing employment opportunities for neighborhood residents. Once complete, the Greenco Beverage project is expected to have a catalyzing effect for the surrounding community and transform it into a dynamic business scene.
Deborah McKetty, GNMO II advisory board member and executive director of Community Works, a certified CDFI, said, "We have adapted and grown stronger in an environment that is very different that it was ten years ago. However, there remains much work to be done to support South Carolina communities."
Propst added, "We could not have achieved our results without our investors, our amazing borrowers, and our community partners, in particular our legislative delegation including Senators Tim Scott and Lindsey Graham."
Founded in 1979, Greenville Local Development Corporation (GLDC), a 501(c)(3) non-profit, was established by a group of committed community and business leaders in Greenville, SC to address obstacles faced by businesses and community based organizations in obtaining conventional financing. Since inception, GLDC has been working to provide financial assistance, real estate development coordination, and strategic guidance for economic development projects and business expansions.
Headquartered in Greenville, S.C., taxadvantagegroup (tag) is one of the country's most successful consulting firms specializing in New Markets Tax Credits, helping nonprofit and for profit organizations access capital and transform communities. Since 2004, tag has played an instrumental role in securing funding over $1 billion for community projects across the United States. In addition, tag manages $290 million of NMTC assets.
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