CEI was awarded a total of $249 million of investment capacity under the U.S. Treasury Department’s New Markets Tax Credit (NMTC) program. As of July 1, 2007, CEI has utilized $194 million of this capacity (78%) in nineteen (19) high-impact projects triggering total private capital investment in low-income communities of over $700 million, with major economic, social and environmental benefits – the triple bottom-line or “3Es” of economic progress, social equity, and environmental protection. CEI 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. All its investment activity to date has been in this core market area.

CEI’s Investment Themes

• Natural Resource-Based Development Investments. Investments in operating companies utilizing sustainably-managed natural resources as key assets in their businesses, often in rural areas, creating value-added products – working forests, pulp and paper companies, wood products companies, small farms, waterfront and marine businesses, recreational tourism ventures, and supporting industries.
• Major Business and Real Estate Investments. Investments ranging from $2 million to over $30 million in 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 Investments. Investments ranging from $500,000 to $2 million, primarily in small and medium-sized job creating businesses, which provide the majority of employment in rural areas, with an emphasis of 3E benefits and helping community banks gain access to the NMTC program.
• Community Development Entity (CDE) Partnership Investments. Investments in meritorious projects, made in partnership with community development financial institutions and other community development organizations, financing operating businesses, community facilities, and projects leading to affordable housing.

CEI’s Investments

Gulf of Maine Research Institute (GMRI). $4.1 million NMTC capacity used to provide the long-term debt financing for the new GMRI marine research/education laboratory in Portland, Maine, with a principal mission of supporting the fishing industry in the Gulf of Maine.

Appalachian Mountain Club (AMC). $17.0 million of NMTC capacity used to provide the long-term debt financing for a major new recreational tourism/working forest business to be operated by AMC in northwestern Maine, offering extensive community input and benefits.

Lyme Timber Company. $9.3 million of NMTC capacity used to provide long-term debt financing for 83,000 acres of sustainable working forest adjacent to the Adirondack Park in New York, with a commitment to support new recreational tourism development ventures.

Fralo Plastech Manufacturing. $6.2 million of NMTC 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). $27.8 million of NMTC capacity used as one of three NMTC award winners combining to facilitate $70 million of long-term debt on a $246 million purchase of 1.1 million acres of sustainable working forest in Maine and New Hampshire. The corporate investor and unrelated corporate buyer have agreed to fund and support a cooperative effort among themselves, the NMTC entities and The Nature Conservancy on a range of development and conservation objectives, including sustainable working forest certification (SFI), development of new industries and recreational tourism enterprises in the region, and other mission-driven programs of the NMTC “allocatees” in their respective low-income service areas throughout the nation.

Ingraham Community Services. $4.0 million of NMTC capacity used to allow Ingraham, a community-based nonprofit that provides crisis response, residential, and support services to purchase a building in downtown Portland. It will consolidate its disparate operations into one location so that it can reduce its rental costs, take advantage of greater operational efficiencies, and assure a continuing presence and availability of its community services on the Portland Peninsula. The use of NMTCs in this project will help sustain a critical community resource and service provider, support crucial services that assist some of the community’s most challenged populations, and aid in the economic development and revitalization efforts in Portland’s downtown district.

22 Park Street, Lewiston ME. Pending. $2.12 million of NMTC capacity used to purchase and rehabilitate a 4-story building in downtown Lewiston, ME into a “mixed-use” commercial/housing project by CEI Housing, Inc. The project includes significant community benefits, including redevelopment of a vacant urban structure; provision of first-class commercial/office space at a discount from market; the creation of additional needed new housing units (8); and support for the overall viability and vitality of downtown Lewiston.

Key Triple Bottom-Line Results

• $106 million of CEI NMTC investment capacity (plus $68 million from others) has resulted in the commitment of an additional $262 million of capital creating $407 million of total new private capital investment in low-income areas. This is a leverage ratio of $2.34 of total private capital for every $1.00 of NMTC capacity utilized.
• Over 1,780,000 acres of northern 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.
• Over 4,000 direct jobs preserved or created, with an additional 1,500 projected jobs. Indirectly, thousands of additional jobs are involved in the fishing, paper and wood products, recreational tourism, and related manufacturing, transportation, and service industries
• Eight of the nine deals are in especially-challenged “targeted distressed community” areas; three of the businesses financed are mission-driven nonprofit enterprises (GRMI, AMC, Ingraham).
• Creation of new capital and funds within four different NMTC award winners for their core low-income programs and new small business revolving loan funds and conservation initiatives.