with HTCs Jerry Breed , Bryan Cave, Washington, DC Mary Thompson , - - PowerPoint PPT Presentation

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with HTCs Jerry Breed , Bryan Cave, Washington, DC Mary Thompson , - - PowerPoint PPT Presentation

Sep 26, 2023 103 likes •192 views

Strategies for Combining NMTCs with HTCs Jerry Breed , Bryan Cave, Washington, DC Mary Thompson , Bank of America Merrill Lynch, Boston, MA Waterfire Providence Founded in 1997, WaterFire Providence is an independent, non-profit arts

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Strategies for Combining NMTCs with HTCs

Jerry Breed, Bryan Cave, Washington, DC Mary Thompson, Bank of America Merrill Lynch, Boston, MA

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Waterfire Providence

  • Founded in 1997, WaterFire Providence is an independent, non-profit arts organization

whose mission is to inspire Providence and its visitors by revitalizing the urban experience, fostering community engagement and creatively transforming the city by presenting WaterFire for all to enjoy.

  • WaterFire Providence is redeveloping a vacant 35,000 SF warehouse building in the

Olneyville neighborhood of Providence, RI.

  • The site is a brownfield industrial site on the National Historic Register.
  • The project will enable WaterFire Providence to consolidate all its operations and

personnel (which are currently sited at six locations throughout the city) into one building.

  • And also provide public gallery space for performances and exhibitions, establish

youth development programs in arts education including boatbuilding, and host an International Center for Excellence for Creative Placemaking to include a public art incubator and learning lab.

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Waterfire Pictures

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Waterfire Arts Center

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Proposed Twinned Structure

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Benefit of twinning

Twinned NMTC-LISC CDE1 NMTC-BOA NMTC-LISC CDE2 TOTAL QEI/ Allocation 2,856,000 5,000,000 2,144,000 10,000,000 Percentage 0.39% 0.39% 0.39% 0.39% Calculated Tax Credits 1,113,840 1,950,000 836,160 3,900,000 Percentage to Investor 100% 100% 100% 100% Credits to Investor 1,113,840 1,950,000 836,160 3,900,000 Price / Credit 0.86 0.86 0.86 0.86 NMTC Equity 957,902.4 1,677,000 719,097.6 3,354,000 FHTC Equity 1,424,902.4 1,424,902.4 Investor Equity 957,902.4 1,677,000 2,144,000 4,778,902.4 Sponsor Loan 1,898,097.6 3,323,000 5,221,097.6

Tax Credit Calculation

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Considerations

  • Revenue Procedure
  • Additional CDE
  • CDE makes equity Investment
  • Costs/Expenses
  • HTC considerations

– Economics – Exit

  • Forgive loan
  • Put interest to an affiliate of developer
  • Liquating CDE
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Issues

  • NMTC considerations

– 12 month deployment – Reinvestment

  • HTC considerations

– Adjuster payment made to CDE

  • CDE equity interest

– Redemption Risk