Roeder & Company, LLC announces the closing of a federal New Markets Tax Credit (NMTC) financing for the San Carlos Apache Tribe’s three new community facilities on the San Carlos Apache Tribe Reservation in rural Arizona. Roeder & Company sourced $5.5 million in Federal NMTC allocation from Clearinghouse Community Development Financial Institution for the financing of two 12,600 square-foot community centers and a community swimming pool complex to include a 16-lane swimming pool with diving area, a wading pool, and a children’s pool in the Gilson Wash District, all within the boundaries of the San Carlos Apache Indian Reservation. Mohave State Bank provided the tax credit equity for the transaction.

These projects are centered around youth and safety. The activity centers will provide recreation options for youth and parents that serve as alternatives for gang activity and drug use.

“The Reservation is currently experiencing a substance abuse epidemic that affects more than 20% of the population directly and almost everyone indirectly,” said Kevin Cronk, Tribal Treasurer.  “The lack of healthy, supervised options outside of school exacerbates the problem, and these centers are critical in changing the social dynamics affecting our young people.”

Each community facility will provide permanent space for the Boys and Girls Club, San Carlos Recreation, Early Head Start, Head Start, District Administration, San Carlos Forestry, Law Enforcement, San Carlos Wellness Program, and the San Carlos Youth Council at no cost. These tenants will in turn offer 15,500 hours of educational, recreational, healthcare, and safety services annually for no or low charge to the surrounding low-income community. 

“The ability to offer these community services at rates accessible to everyone in the low-income community is preserved thanks to the NMTC net benefit provided to the project,” said Reynold Roeder, Roeder & Company CEO. “The Tribe has now seen firsthand the impact that the NMTC Program can have in furthering its development goals on Reservation. We look forward to continuing to work with the Tribe as they seek to maximize positive community outcomes using NMTCs as a financing tool on future projects.”

​For more information on the San Carlos Apache Tribe, please visit http://www.sancarlosapache.com/. 

Roeder & Company, LLC announces the closing of a federal New Markets Tax Credits (NMTCs) financing for the Yakima YMCA in Yakima, Washington. Roeder & Company sourced $9 million in Federal NMTC allocation from Enterprise Community Investment for the financing of an approximately 66,000 square-foot facility that will include a youth development area, teaching kitchen, group fitness and cardio center, gym and indoor running track, three pools, and community gathering space. Wells Fargo provided the tax credit equity for the transaction.

The new YMCA facility has been designed with specific community needs in mind; the building will provide programming to help address difficulties accessing affordable child care, improve health care options and outcomes, reduce the obesity rate, and decrease participation in gang activity.

“The new YMCA facility in Yakima will offer no-cost programs year-round for drop-in youth that provide a safe, adult-supervised space for social, recreational, and academic support opportunities,” said Bob Romero, Executive Director of the Yakima YMCA. “It will also offer a new full-service fitness center accessible to the low-income community, as well as a number of programs focusing on increasing health and wellness.”

The project is a partnership with the City of Yakima which has committed its support to construction and long-term operation of the aquatic center. The growing list of community partners and supporters includes many organizations from both the public and private sectors.

“The ability to complete the building without debt is essential to the financial capacity of the YMCA to provide programs and services at free or reduced cost to low-income young people and families,” said Sara Pietka, Roeder & Company President. “NMTCs were crucial to completing this facility without the need for ongoing debt service.”

For more information on the Yakima YMCA, please visit http://www.yakimaymca.org/. 

Roeder & Company, LLC announces the closing of a federal New Markets Tax Credits (NMTCs) financing for Swanson Group, Inc. (“Swanson”) headquartered in Glendale, Oregon. Roeder & Company sourced $19 million in Federal NMTC allocation from Empowerment Reinvestment Fund, Greenline Community Ventures, and Capital One N.A. for the financing of equipment and inventory at its locations in Glendale, Roseburg and Springfield, OR.  Capital One N.A. provided the tax credit equity for the transaction.

In July of 2014, Swanson’s plywood and veneer plant in Springfield was destroyed by a fire that displaced 250 workers. Swanson is in the process of rebuilding the plant and incorporating new technologies. Upon completion, the new plant will produce and merchandise veneer produced from logs sourced from private, State and Federal forests. In addition, the plant will manufacture an array of premium plywood products including medium- and high-density overlays, hardwoods, sanded siding and industrial grade panels. The new plant will cost approximately $80 million, and the NMTC financing will enable Swanson to purchase vital equipment that is essential for preparing high-quality cost-competitive plywood products.

A portion of the NMTC financing proceeds will be used for acquiring logs for its mills and plants in Glendale and Roseburg. The below-market NMTC financing terms enable Swanson to realize savings and stabilize operations following years of financial strain caused by the Springfield fire.

“The new Springfield mill will be the most technologically advanced plywood plant in North America. It will also create skilled jobs and it will be a boon to the local economy,” said Steve Swanson, Swanson Group, Inc. CEO.
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“Nearly half the state of Oregon is forested. The forest sector remains a resilient and vital contributor to the state’s economy, especially in rural communities,” said Reynold Roeder, CEO of Roeder & Company, LLC. “This NMTC financing will enable Swanson to emerge from this tragic fire as a stable business and continue its investment in Oregon’s low-income communities.”

For more information on Swanson Group, Inc, please visit http://www.swansongroup.biz/. 

Roeder & Company, LLC announces the closing of a federal New Markets Tax Credits (NMTCs) financing for the Performing Arts and Event Center (“PAEC”) in Federal Way, Washington. Roeder & Company sourced $9.5 million in Federal NMTC allocation from Clearinghouse CDFI for the new construction of the PAEC facility, and Capital One provided the tax credit equity. The City leveraged a combination of sources to fund the $32.7 million project, including state grants, CDBG funding, New Markets Tax Credits, private donations, and City funds. The net benefit from the NMTC financing was a vital component of the capital stack.

The City of Federal Way is developing the 46,000 sq. ft. PAEC community facility as the focal point of a nearly 20-acre Transit-Oriented Development. The PAEC will be a multipurpose venue intended to accommodate theatrical, musical, dance, artistic and spoken-word performances in its 700-seat, two-tiered auditorium. Conferences, seminars, meetings, and other assembly events will also occur in both the auditorium and the building’s 8,000 sq. ft. of event space.

“The City of Federal Way had a vision to transform an abandoned big box shopping center into an attractive centerpiece for a community rebirth. The Performing Arts and Entertainment Center will house several local organization performances and provide a venue for community events and education,” said Reynold Roeder, CEO of Roeder & Company, LLC.

“The Performing Arts & Event Center is so much more than just a building. It is an investment in our future that will provide new and exciting opportunities—making Federal Way the best place to live, work, and play,” said Federal Way Mayor Jim Ferrell.

Construction began on the PAEC building in the fourth quarter of 2015, and is expected to be complete by August 2017. For more information on the PAEC facility, please visit http://www.cityoffederalway.com/page/performing-arts-event-center-1. 

Roeder & Company, LLC announces the closing of a $10 million Federal New Markets Tax Credit (NMTC) financing for Heritage University’s campus expansion in Toppenish, Washington. Roeder & Company sourced the allocation from Dakotas America, LLC.

Heritage is a private, non-profit university serving rural and low-income students, many of them the first in their families to attend college.  The university has a three-phase strategic plan in place to increase the undergraduate population from 800 currently to 2,000 students over the next five years by constructing new buildings on campus, expanding scholarship support and enhancing academic programs and student services.  The NMTC net derived benefit was used to complete the funding of Phase II, which involves the construction of two new buildings on campus that will expand its health science curriculum and provide administrative offices for current and to-be-hired faculty.

Heritage serves communities where rates of higher education attainment by people over the age of 26 is only 8% as compared to the national average of 25%.  These students may take longer than average to complete college because they need pre-college coursework, or they may need flexible class schedules to accommodate lifestyles that often already include family and work.  These facts sometimes make it more difficult for the university to finance capital projects as Heritage cannot raise revenue because tuition rates need to remain affordable for the low-income community. 

“Heritage provides the support and encouragement necessary to guide students to graduation, and this project will greatly enhance our ability to reach more individuals in the low-income community,” said Dr. John Bassett, President of Heritage University. “Removing barriers is a core tenet of our day-to-day decisions, and the NMTC financing removed any remaining barriers to achieving our Phase II strategic goals.”

“We worked nearly two years with the university and its staff to locate and close allocation for this project,” said Roeder & Company CEO Reynold Roeder. “This one was especially rewarding as it aligns so well with our mission to facilitate investments in low-income communities that increase opportunities for education and technical training,”

For more information about Heritage University, please visit www.heritage.edu.

Roeder & Company welcomes the addition of Norm Winters to its Advisory Board.  Mr. Winters is the Senior Vice President for Government Guaranteed Lending for Old West Federal Credit Union. He has over 35 years of lending experience in asset-based lending, leveraged leases, project financing, and mergers and acquisitions.

“The addition of Norm to our Advisory Board strengthens our connection to rural Oregon with his extensive record funding projects throughout the eastern part of the state,” said Reynold Roeder, CEO of Roeder & Company, LLC. Mr. Winters will join Robin Boyce, Kevin Campbell, Victor Merced, Gary Neal, and Matt Burton on Roeder & Company’s Advisory Board.

For further information, call 503-641-5457.

Roeder & Company welcomes the addition of Robin Boyce to its Advisory Board.  Ms. Boyce is the Executive Director of the Housing Development Center, a nonprofit consulting organization the provides affordable housing development, asset management training and technical assistance, and affordable housing policy research and development. Ms. Boyce is also Executive Director of the HDC Community Fund, HDC’s related Community Development Financial Institution, which provides loans to mission-driven developers of community facilities and affordable housing.

 “Robin has over 30 years of experience serving low-income communities. Adding her to our Advisory Board deepens our expertise in mission-driven development,” said Reynold Roeder, CEO of Roeder & Company, LLC. Ms. Boyce will join Kevin Campbell, Victor Merced, Gary Neal, and Matt Burton on Roeder & Company’s Advisory Board.

For further information, call 503-641-5457.

Roeder & Company, LLC announces the closing of state historic tax credits, federal historic tax credits, and federal new markets tax credits financings for the Thomas Jefferson Tower in Birmingham, Alabama. Roeder & Company sourced $6.5 million in Federal NMTC allocation from Brownfield Revitalization, LLC and $3.5 million in federal historic tax credit equity for the rehabilitation of the Thomas Jefferson Tower. The project also received $3.8 million in state historic tax credit equity.

Reed Realty Advisors and its partners will transform the 19-story Thomas Jefferson Tower from a vacant and deteriorating historic landmark into a unique entertainment and event venue in a rejuvenated downtown area in Birmingham.  Project plans include renovation and redevelopment of the 160,000 square-foot Thomas Jefferson Tower complex into a building with 96 apartment units (of which 21 are reserved for affordable housing) and 25,000 square feet of commercial space including a 14,000 square-foot indoor/outdoor event space with a restored ballroom, dining rooms, private terrace, and rooftop pool/entertainment deck. Due to the net benefit from the tax credit financings, the developer team can incorporate affordable housing and healthy food access as components of the $16 million rehabilitation and renovation.

“The tax credit financings will enable us to meet two very apparent needs of the neighborhood,” said Scott Reed, founding principal of Reed Realty Advisors. “Birmingham has a vacancy rate of 1%, making it difficult for residents of the community to secure housing. There is also a lack of grocery stores in the immediate area, so we used some of the tax credit funding and dedicated it toward establishing a food co-op delivery center so the community can have ready access to affordable and nutritious produce.”

“We have been working with the developer team for nearly a year to bring this financing package together. The complexity of bringing together three sources of tax credit financing proved a significant challenge, however, these programs made it possible for the project to address some of the most pressing needs of the low-income community,” said Reynold Roeder, CEO of Roeder & Company, LLC.

Construction on the Thomas Jefferson Tower will begin in February 2015, and is expected to be complete by December 2015. Reed Realty Advisors, LLC, provides a full range of real estate consulting, asset management, and construction consulting services to some of the country’s largest public and private real estate owners and investors with offices in Los Angeles, San Jose, and Portland. For more information about Reed Realty Advisors, please visit www.reedrealtyadvisors.com.