NEW ORLEANS, Aug. 27, 2012 /PRNewswire/ -- Enterprise Community Investment, Inc. (Enterprise), Renaissance Neighborhood Development Corporation (RNDC) and U.S. Bank today announced the close of tax credit financing for the rehabilitation of the former Lykes Steamship and Centennial Cotton Press buildings into 1770 Tchoupitoulas, a $19 million mixed-used project under construction in the city's Lower Garden District. The revitalization will transform the former office and warehouse site into mixed-income housing, a fresh food commercial kitchen and retail and warehouse space. Once completed, the rehabbed structures will meet both Enterprise Green Communities Criteria and U.S. Green Building Council LEED standards.
"The Tchoupitoulas project benefits greatly from New Markets Tax Credit equity as well as Historic Tax Credit funding," noted Joseph Wesolowski, senior vice president, Structured Finance at Enterprise. "These buildings have stood vacant for 20 years, and through public-private partnerships, a new community of opportunity will be created providing access to permanent jobs, a job training program and affordable housing."
Enterprise provided $10 million of New Markets Tax Credit allocation and RNDC's parent organization Volunteers of America National Services provided $8.5 million of allocation to help make the project financially feasible using the New Markets Tax Credit Program. Financing included more than $7.9 million of New Markets and Historic Tax Credit equity from U.S. Bancorp Community Development Corporation (USBCDC), the community investment subsidiary of U.S. Bank. IBERIABANK provided a $3.2 million term loan and $7.7 million in bridge financing. The balance of project costs was funded by $2.6 million in state historic tax credit proceeds; $3.5 million in HUD disaster Community Development Block Grant funds from the state Office of Community Development – Disaster Recovery Unit; $2.5 million from the Project-Based Recovery Opportunity Program; $1 million from the Louisiana Loan Fund in partnership with Enterprise; and various other grants and donations.
Among the redevelopment project's unique features is a 6,200-square-foot commercial kitchen, to be operated by the Volunteers of America of Greater New Orleans. "Within five years, the kitchen will serve healthy meals to 2,110 students at eight area schools and 110 low-income clients daily," said James M. LeBlanc, President/CEO Volunteers of America Greater New Orleans. "The kitchen will also provide job training in the culinary arts to 125 low-income individuals annually."
Twenty-seven of the 52 apartments will be affordable to families earning up to 80 percent of area median income. The project will also have 6,400 square feet of retail space and 40,700 square feet of warehouse space.
"We've witnessed the dramatic economic and social impacts that the New Markets Tax Credit Program creates in communities across the country," said Matt Philpott, Director of New Markets, Historic and Renewable Energy Tax Credit Investments, USBCDC. "We are pleased to join with RNDC and Enterprise in the revitalization of 1770 Tchoupitoulas and show our continued support of New Orleans."
The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to encourage the investment of private capital in designated low-income communities in order to create jobs, generate economic activity and improve the quality of services in low-income communities and to low-income persons. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making qualified equity investments in specialized financial institutions called Community Development Entities (CDEs). Capital raised by the CDEs is then used to provide below-market financing to qualified businesses in low-income communities. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. For more information, visit www.cdfifund.gov.
Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For 30 years, Enterprise has introduced neighborhood solutions through public-private partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested more than $11.5 billion in equity, grants and loans to help build or preserve nearly 300,000 affordable rental and for-sale homes to create vital communities. Visit www.EnterpriseCommunity.org and www.EnterpriseCommunity.com to learn more about Enterprise's efforts to build communities and opportunity.
Renaissance Neighborhood Development Corporation (RNDC) was founded in 2006 to rebuild affordable housing in greater New Orleans in the wake of Hurricane Katrina. RNDC has completed three mixed-income projects, creating 444 rental units so far. RNDC focuses on housing that is accessible to employment opportunities, commercial services and public transportation. It is a subsidiary of Volunteers of America National Services and Volunteers of America of Greater New Orleans. Volunteers of America is a national, nonprofit, faith-based organization dedicated to helping those in need live healthy, safe and productive lives. Since 1896, our ministry of service has supported and empowered America's most vulnerable groups, including the frail elderly, people with disabilities, at-risk youth, men and women returning from prison, homeless individuals and families, those recovering from addictions and many others.
U.S. Bancorp (NYSE: USB), with $353 billion in assets as of June 30, 2012, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,080 banking offices in 25 states and 5,085 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp and its employees are dedicated to improving the communities they serve, for which the company earned the 2011 Spirit of America Award, the highest honor bestowed on a company by United Way.
U.S. Bank is also a recognized leader in financing a variety of community development initiatives using state and federally sponsored tax credit programs. U.S. Bancorp Community Development Corporation, the tax credit investment subsidiary of U.S. Bank, provides capital investment to areas that need it the most and has contributed to the generation of commercial economic activity, rehabilitation of historic buildings, construction of affordable and market-rate homes, and development of renewable energy facilities. Visit U.S. Bancorp on the web at www.usbank.com.
The Disaster Recovery Unit within the Office of Community Development is dedicated to helping Louisiana's citizens recover from hurricanes Katrina, Rita, Gustav and Ike. As the state's central point for hurricane recovery, the OCD-DRU manages the most extensive rebuilding effort in American history, working closely with local, state and federal partners to ensure that Louisiana recovers safer, smarter and stronger than before.
SOURCE Enterprise Community Investment, Inc.