Art Momjian of the Philadelphia Office, Chris Winter of the Wilmington Office, and Marc Kushner of the New York office represented Zagis USA, LLC in the closing of a Federal New Markets Tax Credit facility for the expansion of a cotton spinning facility in Louisiana. The expansion of the existing cotton spinning facility created additional employment in a non-metropolitant area of Louisiana. The financing qualified under the Federal New Markets Tax Credit targeted population regulations and was structured by Advantage Capital Partners.
Duane Morris NYC Hosts Sandy Conference
On September 25th a distinguished panel of speakers which included Jonathan Gouveia of the New York City Economic Development Corporation, Margaret Anadu of the urban investment group of Goldman Sachs, George Olsen of the New York City EB-5 Regional Center, and Andy Rachlin of The Reinvestment Fund made presentation regarding the financial tools available for Sandy-affected areas before a capacity audience at the New York City Offices of Duane Morris. Duane Morris partner and Super Storm Sandy practice Chair Art Momjian and Marie Mascherin of the Community Loan Fund of New Jersey, Inc. moderated a lively discussion of the resources available for development and resiliency in Sandy-affected areas. The panel also provided examples of the funding sources partnering by contributing New Markets Tax Credits, HUD CDBG grants, and EB-5 financing for the development of projects in Sandy-affected areas.
Duane Morris Sandy Conference on September 25th
On September 25th the New York City Office of Duane Morris will host a Super Storm Sandy Conference and Reception in its New York City Office. The focus of the Conference is “From Disaster to Recovery: Financing Tools for Development after Super Storm Sandy”. The panelists are Jonathan Gouveia, Senior Vice-President of the Strategic Investment Group of the New York City Economic Development Corporation, Margaret Anadu, Vice President of the Urban Investment Group of Goldman Sachs, George L. Olsen, Managing Principal of the New York City EB-5 Regional Center, and Andrew Rachlin, Vice President and Market Leader of The Reinvestment Fund. The speakers on the panel will discuss the distribution of $4 billion of HUD CDBG monies by the New York City Economic Development Corporation, the allocation by the Treasury of $8.5 billion of New Markets Tax Credit allocation next Spring, and the availability of the Federal EB-5 program for the development of Sandy related projects. The Conference will be from 5 pm to 6 pm followed by a cocktail reception from 6:00 pm to 7:30. For further information and to register contact Art Momjian at ajmomjian@duanemorris.com.
Duane Morris Forms Team for Acquisition Rehabs with Bonds and Tax Credits
Duane Morris partners Bob Archie and Art Momjian are working with Bob Jacobs of RCJ Consulting, LLC, Roy Diamond of Diamond and Associates, Eugene (“Geno”) Schiavo of Kitchen and Associates, and Pierce Keating of Keating Construction Company as a result of HUD authorizing the prepayment and refinancing of Section 202 Direct Loan projects have teamed together to help owners of seasoned Section 202 apartment buildings perform substantial renovations of their properties through the use of a financing structure known as a “lease/acquisition rehab” tax-exempt bond and tax credit structure. In this structure, the existing owner “leases” the apartment building to a technically unrelated limited partnership which leases and the renovates the apartment building through the use of tax-exempt bonds proceeds, 4% federal low-income housing tax credit equity proceeds, and owner’s purchase money mortgage financing. At least 50% of the prepaid rent or acquisition cost along with the renovation of the apartment building must be financed with volume cap tax exempt bonds, in order for the project to qualify for 4% Federal low income housing tax credits to provide equity for the project. Through the “low-income housing tax lease/acquisition rehab” structure, the owner may complete a substantial renovation of its project while reducing the amount of its existing debt service and receiving a developer fee for its services. To discuss whether your project would qualify for the “lease/acquisition rehab” structure contact Bob Archie at (215) 979-1915 or RLArchie@duanemorris.com or Art Momjian at (215) 979-1521 or ajmomjian@duanemorris.com
New York City Announces Four Sandy Waterfront Design Semi-Finalists
Richard Dyer a partner in the New York City Office of Duane Morris reports that on July 18th, four semi-finalist teams were announced by the City of New York including Ennead Architects (formerly Polshek Partners) of New York, Lateral Office of Toronto, Seeding Office of London, and White Arkitekler of London to City sponsored competition to determine how to best design and build on the City’s waterfront areas exposed to future storms.
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Duane Morris NYC Office to Host Super Storm Sandy Conference
The New York City Office of Duane Morris will host a Super Storm Sandy Conference and Reception on September 25th. The focus of the Conference is “From Disaster to Recovery: Financing Tools for Development after Super Storm Sandy”. The panelists are Jonathan Gouveia, Senior Vice-President of the Strategic Investment Group of the New York City Economic Development Corporation, Margaret Anadu, Vice President of the Urban Investment Group of Goldman Sachs, George L. Olsen, Managing Principal of the New York City EB-5 Regional Center, and Andrew Rachlin, Vice President and Market Leader of The Reinvestment Fund. The speakers on the panel will discuss a wide range of financing tools available for development in the aftermath of Super Storm Sandy which include Sandy HUD CDBG grants, Federal New Markets Tax Credits, equity, debt, and EB-5 financing. The Conference will be from 5 pm to 6 pm followed by a cocktail reception from 6:00 pm to 7:30. For further information and to register contact Art Momjian at ajmomjian@duanemorris.com
CDFI Fund Announces Intent to Award $8.5 billion in NMTC Allocation
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) released the Notice of Allocation Availability (NOAA), which officially opens the next round of competition under the New Markets Tax Credit Program (NMTC Program). The NOAA combines the calendar year (CY) 2013 and CY 2014 rounds, making $8.5 billion ($3.5 billion authorized by Congress for CY 2013 and $5 billion requested in the President’s 2014 Budget) in tax credit authority available, pending Congressional authorization.
The CDFI Fund seeks to combine the CY 2013 and CY 2014 rounds in order to achieve cost and efficiency savings to the government in addition to realigning the program calendar. The combined round would also prevent an anticipated deficit of available NMTCs and would allow the CDFI Fund to make additional allocation awards.
At this time, the CDFI Fund anticipates opening the CY 2015 round of the NMTC Program in the summer of 2014 with award decisions in the spring of 2015.
NYC EDC issues RFEI for Staten Island Site
Richard Dyer of the New York City office of Duane Morris reports that the New York City Economic Development Corporation (EDC) and the Port Authority of New York and New Jersey (Port Authority) have issued a Request for Expressions of Interest (RFEI) for re-development at the Staten Island Industrial Park known as the Teleport. The RFEI will seek ideas from developers to expand or transform the site, or to utilize the site more efficiently. Currently, approximately half of the Teleport is used as a data center and office park, while the remaining half, another 40 acres, is available for development.
A public notice regarding the opportunity was posted at the EDC’s website here. The notice summarized some background and elements of the project as follows:
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Duane Morris closes Historic Tax Credit Transaction
The Duane Morris team of Art Momjian, of the Philadelphia office, Chris Winter, of the Wilmington office, and Marc Kushner, of the New York office, represented Ci 6E Lancaster Avenue Associates LP in connection with the partnership’s $40,000,000 historic renovation of the Palmer Seminary located in Wynnewood Pennsylvania. The historic buildings of the Palmer Seminary will be renovated into apartments and medical office space. The Duane Morris team represented the partnership in the syndication of Federal Historic Tax credit generated by the transaction.
NYC Economic Development Corp. to award Sandy CDBG Grants
Duane Morris New York City partner Richard Dyer reports that the New York City economic Development Corp. is requesting proposals from qualified firms or individuals to establish programs to “catalyze significant long-term economic growth” in five areas impacted by Hurricane Sandy. See here.
The RFP process is described by the EDC as:
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