Striped Rhino is pleased to hear the news that our client, Mission Valley Aquatics, has officially secured $6 million in financing from Montana CDC. The new market tax credits received by Mission Valley Aquatics allowed the organization to complete construction of the multimillion dollar facility and open its doors to happy swimmers in the community.
“New Markets Tax Credits (NMTC) were established by Congress in 2000 to encourage the investment of private capital in designated low-income communities in order to create jobs, generate economic activity and improve the quality of services in low-income communities and to low-income persons. NMTCs attract investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making qualified equity investments in specialized financial institutions called Community Development Entities (CDEs). In turn, CDEs provide below-market financing to transformative development projects in low-income communities across the country.”
It was based on the hard work of both Project and Facility Directors that the Montana CDC determined that the loan was well-suited for the needs of the town’s residents.
In an article posted on MontanaCDC.org, both Senator Max Baucus and Senator Jon Tester say that the investment is “a smart investment into Montana” and “a smart way to improve access to care and raise the quality of life for folks in Polson.”
Congratulations on successfully accomplishing what you have been working on for so long!
Read the full article below:
Just in time for summer, Montana CDC and U.S. Bank have secured $6 million in permanent financing to support the Mission Valley Aquatics community health facility. Founded in 2002, Mission Valley Aquatics is a Lake County based not-for-profit created to build and operate an aquatic facility providing swimming and therapy programs to people of all ages and abilities in and around Polson. The center includes an 8-lane, 25-yard swimming pool, and is the only available facility for the surrounding rural community.
“Supporting more than 40 jobs in Polson while building healthy community infrastructure is a win-win,” said Senator Max Baucus, who helped make New Markets Tax Credits available to rural areas as Chairman of the Senate’s tax-writing committee. “This is a smart investment into Montana jobs while bolstering an important economic corridor for Indian Country and the entire Flathead community.”
Over the past ten years, Mission Valley Aquatics created a design that is well-suited for the needs of the town’s residents, gathered letters of support from community members, and raised more than $4.6 million in funding from private donors and lenders. The New Markets Tax Credit financing from U.S. Bancorp Community Development Corporation, the community development subsidiary of U.S. Bank, and Montana Community Development Corporation provides a critical piece of the project and allowed the facility to open for the summer season. Harnessing the power of NMTCs, Montana CDC raised U.S. Bank’s investment and leveraged funding from private donors and lenders to provide patient, low-cost capital to Mission Valley Aquatics.
Senator Jon Tester is also a long-time supporter of the New Markets Tax Credit program. “The New Market Tax Credit has helped dozens of Montana communities grow and create jobs,” Tester said. “Investing in this Mission Valley Aquatics facility, with its strong community support, is a smart way to improve access to care and raise the quality of life for folks in Polson.”
“We’re committed to fostering community development across the country and are pleased to partner with Montana CDC to help foster economic growth of Montana,” said Matt Philpott, director of New Markets, Historic, and Renewable Energy Tax Credit Investments for U.S. Bancorp Community Development Corporation. “We applaud Sen. Baucus and Tester for their support of this financing tool for such worthy projects.”
This is Montana CDC’s first New Markets Tax Credit (NMTC) project in Polson and the first to be built with a not-for- profit organization. Dave Glaser, President of Montana CDC, recognizes the importance of using New Markets financing to support community-based facilities. “Mission Valley Aquatics was a natural fit for New Markets, as the organization receives a stable source of financing, the community receives a health facility with long-term viability, and U.S. Bank receives an opportunity to provide capital to Montana.” Since 2009, Montana CDC has provided nearly $123 million in NMTC financing to projects throughout Montana and Idaho.
Like all New Markets Tax Credit projects, there are significant community impacts associated with the facility. Mission Valley Aquatics will provide access to fitness and aquatic rehabilitation services in a rural area, and create jobs in a rural community. The facility will maintain three permanent full-time positions and create 40 permanent part-time positions.
“We are grateful to have received New Market Tax Credit financing,” Tana Seeley, MVA Project Director, said. “It has enabled us to complete construction and open our doors to the public. We are already seeing the positive energy the aquatic center brings to our community.”
Montana CDC received its first allocation of NMTCs in 2009, and since that time, the financing has spurred projects totaling $123 million across Montana and Idaho.