NMTC Impacts and Investments
Coastal Enterprises, Inc. (CEI)and its for-profit subsidiary, CEI Capital Management LLC (CCML), have been awarded $778 million of investment capacity under the U.S. Treasury Department’s New Markets Tax Credit (NMTC) program. CCML has placed $94.6 million of this capacity in 76 projects triggering total private capital investment in low-income communities of over $1.98 billion that directly supports CEI’s triple bottom-line or “3E” measures for Economic progress, social Equity, and Environmental sustainability. CCML has a national service area under the NMTC program with an emphasis on rural areas and a core market of Maine, New Hampshire, Vermont, upstate New York and western Massachusetts.
Investment Themes
- Rural Community Investments. Loans to operating companies in rural communities, often sustainably-managed natural resources as key assets in their businesses, to create value-added products (e.g. working forests, biomass energy, wood products, agricultural processors, marine businesses, and recreational tourism ventures and other types of businesses that may help diversify the local economic base).
- High Community-Impact Business and Real Estate Investments. Loans to operating companies and real estate developments with compelling triple bottom-line (“3E”) features, including use of renewable energy, energy conservation, and “green building” design.
- Small & Medium Enterprise Revolving Loan Fund. Smaller loans starting from $100,000 for small and medium-sized businesses of all types, which provide the majority of employment in rural areas, with an emphasis of 3E benefits.
Key Triple Bottom-Line (“3E”) Results
- $1.98 billion of new private capital investment in low-income areas has been leveraged by $694.6 million of CEI/CCML NMTC investment capacity along with $472.6 million NMTC capacity from others resulting in a leverage ratio of $1.85 of private capital to every $1 of NMTC capacity utilized.
- Over 2,443,686 acres of timberlands committed to sustainable forestry practices and retained as working forests for traditional mill supply purposes and additional economic development in recreational tourism and other industries.
- 72 megawatts of green energy and over 945,000 gallons of alternative fuel generated annually trhough solar, biofuel or other alternative energy solutions.
- Over 11,683 direct jobs preserved or created. Indirectly, tens of thousands of additional jobs are involved in the fishing, paper and wood products, recreational tourism, and related manufacturing, transportation, and service industries.
- 72 of the 76 deals are in especially-challenged “targeted distressed community” areas.
- 31 of the businesses financed are mission-driven, non-profit enterprises.
CEI's NMTC Investments
Katahdin Forest Management, Millinocket, ME $32.5M of NMTC capacity financing 300,000 acres of sustainable working timberlands in Maine, part of the financing to re-open the Great Northern Paper company mills, preserving and/or re-activating 620 jobs.
Gulf of Maine Research Institute (GMRI), Portland, ME $4.1M of capacity used to provide the long-term debt financing for the new GMRI marine research/education laboratory in Portland with a mission of supporting the fishing industry in the Gulf of Maine.
Appalachian Mountain Club (AMC), ME $17.0M of NMTC capacity for long-term debt financing for a major new recreational tourism/working forest business operated by AMC in northwestern Maine, with extensive community input and benefits. Part of AMC’s Maine Woods Initiative.
Lyme Timber Company, NY $9.3M of capacity providing long-term debt financing for 83,000 acres of sustainable working forest adjacent to the Adirondack Park, with a commitment to support new recreational tourism development ventures.
Fralo Plastech Manufacturing, Syracuse, NY $6.2M of capacity used to facilitate an equity investment in an early-stage manufacturing company of engineered plastic septic tank systems located in an upstate New York Empire Zone and utilizing recycled plastic.
GMO Renewable Resources (GMO), ME & NH $27.8M of CEI capacity used with capacity from two other NMTC allocatees to facilitate $70 million of long-term debt on a $246 million purchase of 1.1 million acres of sustainable working forest in ME and NH. A significant working partner in effort was The Nature Conservancy.
Ingraham Community Services, Portland, ME $4.0M of capacity used to allow Ingraham, a community-based non-profit provider of crisis response and support services, to purchase a building in downtown Portland and consolidate its operations to reduce costs, improve operational efficiencies, and assure availability of community services.
Wagner Forest Management, ME $5.5M of capacity used to finance a portion of $24 million in debt on working forests and timberlands in the heart of Maine’s “industrial forest.” Includes 284,000 acres in “targeted distressed” communities, cooperation from two other NMTC allocatees, and generated substantial equity for CEI’s Northern Heritage Development Fund which is helping to diversify rural economies.
22 Park Street , Lewiston, ME $2.13M of capacity used to purchase and rehabilitate a vacant 4-story building in downtown into a “mixed-use” commercial/housing project by CEI Housing, Inc. The project includes Class A office space at a discount from market and eight new affordable housing units in downtown Lewiston.
13 Mile Woods, Errol, NH $2.39M of capacity allowed the Town of Errol to purchase 5,269 acres of forestland in northern NH after two decades of planning. This community forest is managed to preserve traditional forestry uses, recreation, wildlife habitat and associated jobs.
Plymouth Community Health Center, Plymouth, NH $3.4M of capacity used to finance the construction of a non-profit community health center in Plymouth affiliated with the Speare Memorial Hospital, creating 17 high quality jobs. The area defined as “medically underserved” by the U.S. Department of Agriculture and a health professional shortage area as defined by the NH Health Resources and Services Administration.
Lyme Timberlands II, NY $23.7M of capacity used to provide long-term debt financing for 276,010 acres of working forests in the Adirondacks. Sustainable harvesting practices allow for a long-term wood supply agreement to furnish the critical International Paper Ticonderoga mill. In addition, over $1 million of funding created via this NMTC transaction as supplemental capital to CEI's Northern Heritage Development Fund.
Richford Main Street Mill, Richford, VT $4.9M of capacity to fund a mixed-use redevelopment in Richford of a former textile mill. The project features clinical space in a “medically underserved” area, a grocery store, pharmacy, office space, and affiliated low-income housing funded simultaneously but outside of the NMTC transaction. This project is expected to retain 20 jobs and create 25 new jobs.
Brooks Landing, Rochester, NY $10M of capacity leveraged another $10M in public and private funds to create an extended stay hotel in a blighted area of the city after 20 years of effort by the City of Rochester to bring to fruition. It links a highly distressed neighborhood to the University of Rochester and the Strong Memorial Hospital. Estimated permanent job creation is 150.
River Valley Market, North Hampton, MA $7.4M of capacity for a cooperatively-owned natural foods store to create 70 new jobs. Built to silver LEEDS certified green-design standards, the market is a community business supporting sustainable agricultural development in the Connecticut River Valley with a dues paying membership of more than 2,000.
Webb Building, Buffalo, NY $10.5M of capacity for a mixed-use redevelopment of endangered historic building featuring 32 two-bedroom apartments, 13,000 SF of office space and specialized daycare providing “integrated education” for 200 children with disabilities from local low-income community.
The Electric Tower, Buffalo, NY $6.0M of capacity combined with another $6.0M from another NMTC allocatee for the historic redevelopment of a landmark 14-story building in Buffalo. The project will produce 132,000 SF of Class A office space for over 555 permanent workers and employ building practices equivalent to LEEDs standard certification by the U.S. Green Building Council.
Oscar Brown Block Redevelopment, Claremont, NH $2.8M of capacity for a mixed-use renovation of 1800’s era building in downtown Claremont. The project combined eight sources of subordinated debt and grant funding along with NMTC and Historic Tax Credit equity funds to create a prototype development for commercial and residential space in this small industrial era town.
Worcester Center for the Performing Arts, Worcester, MA $4.25M of capacity to restore an historic performing arts theater to spur the economic revitalization of downtown Worcester, MA. The restored theatre will host over 100 world-class performances annually attracting about 150,000 patrons each year once fully established. WCPA will also collaborate with local colleges and the Performing Arts School of Worcester to provide youth programs in theatre, music, and dance.
Maine Mutual Insurance, Presque Isle, ME $7.0M of capacity used to help expand the Maine Mutual Group’s (MMG) office facilities and technology infrastructure in a particularly challenged rural county in Maine. The expansion and upgrades are allowing MMG to almost double the size of its operating facility and hire an additional 45 professional employees.
Claremont Mills, Claremont, NH $18.5M of capacity for mixed commercial use of a long-abandoned historic mill structure utilizing both Historic Tax Credits and NMTCs, this project is the linchpin of renewed activity in Claremont’s highest priority re-development area, in a non-metropolitan area overlooked by several decades of progress. This project has very strong triple bottom-line benefits, including over 150 new high-quality jobs, featuring professional employment at a rapidly growing computer company.
Hampton Inn, Presque Isle, ME $11.0M of capacity used for the development of a 93-room “flagged” Hampton Inn built to LEED standards. In addition to catalyzing the redevelopment of a blighted downtown site, the project responds to the community’s plans and initiatives of strengthening Presque Isle’s business and tourism infrastructure and reversing the county’s high rate of out-migration. Through the 68 direct jobs created and additional indirect economic impacts, the Hampton Inn reinforces the stimulus of the NMTC-sponsored Maine Mutual Insurance project.
King Street, Burlington, VT $4.7M of capacity used for the creation of a four-story mixed-use building built to LEED standards. The building will create new office space for the Champlain Housing Trust (CHT) plus 20 affordable rental apartments. The project will help retain approximately 80 jobs in the Burlington central business district with another estimated 15 jobs associated with the construction phase of the project.
The Electric Tower Phase II, Buffalo, NY an additional $3.0M of capacity was added to the Electric Tower Project for the continued historic redevelopment of a landmark 14-story building in Buffalo. The project will produce 132,000 SF of Class A office space for over 555 permanent workers and employ building practices equivalent to LEEDs standard certification by the U.S. Green Building Council.
Speare Memorial Hospital, Plymouth, NH $9.4M of capacity used for construction of a 31,654 square foot Medical Office Building (MOB) in a federally-designated medically underserved area. The MOB will provide Speare Memorial Hospital with the opportunity to locate its physicians and surgeons at one site with adequate support services in an efficient, modern facility. It is projected to create 50-75 clerical and physician support jobs within the next five to eight years.
Grand Lake Stream Woodlands, Grand Lake Stream Plantation, ME $19.8M of capacity used to finance 21,949 acres of working forestland; facilitating sustainable harvesting, protecting ecotourism in the area, and providing land for low-income housing development. Preserves over 100 jobs and provides an opportunity for the community purchase of the woodlands.
The Boston Conservatory, Boston, MA $10M of capacity used for the construction and renovation of 39,834 square feet of state-of-the-art performance space, allowing The Boston Conservatory to expand and update their existing theater building in the Fenway neighborhood and dramatically improve the learning and performing experience for their students, faculty and audiences
Portland Public Market, Portland, ME $9.5M to fund the renovation of a shuttered public market into a Gold LEED Standard office building, which will serve as the headquarters for PowerPay, an Inc. 500 Fast Growth company, which is expected to add up to 70 new professional positions in the next 24 months.
Horsehead Zinc, Snelling, SC $10M to finance the construction of a recycling facility that will divert hazardous waste from landfills by turning it into usable materials. Creates 55 new jobs in an area hard-hit by textile mill closings.
Capital Hotel, Concord, NH $10M used to finance the construction of a 92-room, 68,000 square foot Residence Inn by Marriott. Deal includes an innovative Employment and Training Agreement (ETAG) designed to help immigrant and refugee workers learn valuable job skills. Creates 35 new jobs.
Allegheny Rural NMTC Forestlands, WV $11M used to preserve 131,000 acres of working forestland in West Virginia, impacting 13 different mills with 925 direct jobs and another 840 indirect jobs in the forest products industry.
PBS Lumber Manufacturing, Winnfield, LA $11M to finance the expansion of PBS Lumber’s kiln and drying facilities, allowing them to increase production capacity. Preserves 49 and creates 60 new jobs. Provides $140,000 to Louisiana Technical College for scholarships and/or programmatic assistance.
AMC Roach Pond, ME $15M to provide permanent financing for the Appalachian Mountain Club’s acquisition of two properties, the 29,500‐acre Roach Pond tract of working forest in Piscataquis County (Maine) and the Medawisla Wilderness Lodge and Cabins. A continuation of AMC’s Maine Woods Initiative that combines outdoor recreation, resource protection, economic development, sustainable forestry, and community partnerships in the Moosehead region.
LHF Lopiwa, Hawai’i Island, Hawai’i $10M to fund a eucalyptus plantation and veneer mill. Supports a $25M investment in a new veneer mill to create a new industry on the island, replacing the now-absent sugar industry. Also provides material for two biomass plants. Creates 160 permanent jobs.
Commonwealth Diary, Brattleboro, VT $10M to finance the construction of a 32,500 square foot yogurt processing facility in Brattleboro, Vermont, that will produce 50 million pounds of yogurt annually. Creates 50 permanent jobs.
Foremost Farms USA, Richland Center, WI $20M provides for upgrades to Foremost’s Richland Center dairy processing facility to increase operational efficiency and allows for the return of $5.7MM in equity to its 2,400 member-farmers.
Ochoco Lumber Co $20M refinances 47,507 acres of timberland, and funds the revitalization of an existing sawmill and the development of pellet plant. Creates 40 new jobs and retains 100 existing.
ZeaChem Applied Technology LLC $20M finances an R&D and Engineering Service Center/Demonstration Facility to advance ZeaChem's cellulosic ethanol technology. Brings 20 high-paying chemical engineering and research jobs to the area and utilizes local biomass feedstock.
NewWood Manufacturing, Inc. $25M re-commissions a former home siding manufacturing plant into a world class sustainable materials manufacturing facility, which will produce a wood-plastic composite sheet with multiple applications. Creates over 150 new "green collar" jobs.
Rome Creek Timber LLC $20M refinances debt on over 100,000 acres of sustainably-managed timberland. Preserves 3,000 jobs and supports strong corporate citizen with operations in over 80 communities across the country.
Kestrel Brunswick Corporation, Brunswick, ME $20.7M helps jump start the revival of the Brunswick Naval Air Station site by bringing a world-class start up aircraft manufacturing and maintenance company to Brunswick Landing.
American Process Inc., Alpena, MI $20M allows an 85% woman-owned bio-tech firm specializing in cellulosic ethanol technologies and energy optimization, to build and operate a demonstration cellulosic ethanol bio-refinery in the economically challenged town of Alpena, Michigan.
Berlin Station, LLC, Berlin, NH $20.7M redevelops salvaged boiler facilities from the former Fraser Pulp Mill into an advanced environmentally friendly, state-of-the-art, 70 megawatt electricity generating power plant, creating an estimated 40 new jobs.
Kennebec Valley Community Action Program, Waterville, ME $13M to fund Educare Central Maine, the first Educare site in New England. This early childhood education center is designed to serve between 150 and 200 mostly low-income children from before they are born to age five.
Axio Green, LLC, Greenfield, MA $10.8M funds a green initiative to place a two megawatt solar panel facility on Greenfield's capped landfill, which will save the town approximately $175,000 a year in annual electricity costs. Provides $100,000 to Greenfield Community College for training in the solar energy sector.
East Grand Woodlands, Aroostook County, ME $13.3M for the purchase of 12,013 acres of working forest land to be managed under Sustainable Forestry Initiative (SFI) and Forest Stewardship Council (FSC) standards. Preserves at least 100 jobs in the local guiding and lodging industry.
Echo Renewable Resources, Clinch & Echols Counties, GA $21.05M for the purchase and management of 38,538 acres of timberland to be managed under Sustainable Forestry Initiative (SFI)Standards. Sustainable forestry operations will supply to 24 mills in the surrounding communities, helping to preserve and estimated 2,000 jobs.
Brunswick Landing MHC USA LLC, Brunswick, ME $14.26M redevelops vacant Naval Air Station into 79,000 square feet of built-to-suit office and clean manufacturing space for Molynlycke Health Care. Creates up to 85 new jobs, 90% of which will be hired locally.
Habitat for Humanity Affiliates (21), National $2M each funds the work of 21 Habitat for Humanity affiliates in Arizona, California, Colorado, Connecticut, Florida, Michigan, Missouri, Nebraska, North Carolina, Ohio, Oregon, Tennessee, Texas, Washington State, West Viriginia and Wisconsin. Will result in the construction of 473 single-family homes for purchase by low-income individuals and the creation of 800 construction jobs.
Westervelt Pellets I LLC, Aliceville, AL $20M finances the construction of a wood pellet manufacturing facility expected to produce 280,000 metric tons of wood pellets per year to be sold worldwide. Creates 34 direct jobs, 80 full time contracted jobs within wood harvesting and material transportation and 159 indirect/induced non-construction jobs.
DV Timber, Darlington, SC $15M frees up working capital to create a more sustainable organization and more efficiently employ assets for future equipment and plant expansion needs. Creates 28 direct and 34 indirect jobs in forestry, logging, and transportation along with helping to preserve over 228 indirect full-time jobs in low-communities at the parent company facilities
Emmi Platteville, Inc., Platteville, WI $20M for the construction of a 77,000 square foot artisanal cheese manufacturing facility that will produce up to 8 million pounds of cheese annually. The facility will partner with local small farms for quality milk. Creates 32 direct and 70 construction jobs.
Maine New Markets Loan Fund, launched November 2008 $9.5M. A Small and Medium Enterprise Loan Pool created in partnership with Bangor Savings Bank. The benefits of New Markets Tax Credits are now available to many more businesses through access to smaller loans starting from $100,000 for small and medium-sized businesses of all types. These businesses provide the majority of employment in rural areas. We expect to fund approximately 12 loans with this pool that will emphasize 3E benefits. Funds available now!
- Baxter Library, Portland, ME $2.4M to fund the refurbishing of a historic former public library for use as Class A office space.
- Y-Vision, Bangor, ME $2.13M provides increased access to the community services provided by the Bangor Y.
- Lamb Block Associates, LLC, Livermore Falls, ME approx. $1M to fund the purchase and redevelopment of a historic building into mixed-use commercial space.
