Rebuilding%20Communities%20After - PowerPoint PPT Presentation

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Rebuilding%20Communities%20After

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Rebuilding Communities After Hurricane Katrina With New Markets Tax Credits James D. Howard, Jr. TransCapital , LLC TransCapital's Involvement in the NMTC Program ... – PowerPoint PPT presentation

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Title: Rebuilding%20Communities%20After


1
  • Rebuilding Communities After
  • Hurricane Katrina With
  • New Markets Tax Credits
  • James D. Howard, Jr.
  • TransCapital , LLC

2
  • Working through the Damage
  • 450,000 People Displaced
  • 5.5 Billion in Damage to Infrastructure
  • 56 of Schools in Affected Areas Remain Closed
  • 30 Smaller Labor Force in New Orleans
  • 39 Increase in Rent in New Orleans
  • 661,057 Housing Units Damaged
  • Sources MS Chamber of Commerce, 2005 Louisiana
    Hurricane Impact Atlas, FEMA 548 2006, Brookings
    Institute

3
  • TransCapital's Involvement in the NMTC Program
  • TransCapital has been extensively involved in the
    NMTC Program
  • since its inception
  • Successfully supported NMTC applicants which have
    received in excess of 2 billion in allocations
    of New Markets Tax Credits.
  • Structured, marketed and closed NMTC funds with
    committed debt and/or equity in excess of
    400,000,000 of QEIs.
  • Closed QEIs utilizing leveraged and non-leveraged
    structures including tax-exempt bond financing.
  • First NMTC Go Zone transaction closed in January
    of 2007.

4
  • NMTC Go Zone Transactions
  • Completed and Pending
  • Enta Business Loan to Start-up Louisiana
    Technology Company in Baton Rouge, Lousiana
  • Mixed-Use Workforce Housing Project in Biloxi,
    Mississippi
  • Revitalization of a Severally Damaged Historic
    Building in Hattiesburg, Mississippi
  • Mixed-Use Workforce Housing Project in Jackson,
    Mississippi

5
  • Enta One of the First NMTC GO ZONE Transactions
    Completed
  • 13,325,000 QEI
  • Enta is a start-up technology company that
    provides low-cost ticketing services to sports
    and entertainment venues nationally
  • Enta chose to locate in Louisiana due to the Go
    Zone credits ultimately selecting the Louisiana
    Technology Park located in a low-income community
    in Baton Rouge
  • The Company expects to provide approximately 40
    direct jobs in one of the poorest areas of Baton
    Rouge
  • Favorable NMTC financing allows the Company to
    direct its cash toward expansion, instead of to
    providing returns for equity investors
  • Mississippi

6
  • Mixed-Use 250 Unit Workforce Housing Development
  • 66,000,000 mixed-use workforce housing project
    targeting Biloxi and Gulf Coast residents
  • The project will address Biloxis residential
    housing shortage while providing competitive
    retail and commercial space
  • Multiple CDEs are providing allocation to the
    project
  • Challenges include inflated land costs,
    escalation of construction costs, insurance
    premiums, and access to skilled labor

7
  • Revitalization of Katrina Damaged Historic
    Building
  • Severally damaged building remaining vacant and
    in need of repair
  • Combined effort with University of Southern
    Mississippi and local lenders to utilize as
    university classrooms and offices
  • Approximately 12,000,000 in rehabilitation costs
  • Challenges include conversion to functional use
    while maintaining historic attributes, rising
    cost of construction, and ability cash flow at
    market rates

8
  • Mixed-Use For-Sale Housing in Jackson
  • 32,000,000 mixed-use for-sale housing
    development in Jackson, Mississippi
  • Combined effort with Jackson State University and
    multiple CDEs
  • 106 for-sale units sold offered up to 25 below
    market value, subsidized by NMTCs
  • 25,000 SF retail with 78 for rent student housing
    apartments
  • Innovative below market rate for-sale units
    offered to university staff and targeted priority
    groups

9
  • Succeeding in the Go Zone
  • Patience
  • Innovative capital structure to maximize subsidy
    and local community impact
  • Persistence to work with local lenders,
    municipalities, developers, and agencies often
    with disparate views
  • More patience and persistence

10
  • James D. Howard, Jr.
  • jhoward_at_transcapitaltaxcredits.com
  • 2930 East Camelback Road, Suite 215
  • Phoenix, AZ 85016
  • Phone (602) 468-9400
  • Fax (602) 468-2775
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