The New Markets Tax Credit (NMTC) is among the most flexible of federal credits and consequently has generated some of the most complex tax credit transactions we’ve structured. We love a challenge and are proud to have helped our clients close the first NMTC transactions in Minnesota. In the 50 or so NMTC transactions to date, we have represented developers, allocators, investors and lenders in projects ranging from office space, hotels, theatre and retail space to manufacturing and housing.
The most interesting of these include:
- Unique indoor international marketplace housing 60+ permanent food and craft vendors
- Complex financing created to accommodate 28 sources of financing for nonprofit sponsors, including private donations, commercial loans, governmental loans and subsidies, EQ2 loans, and HTC equity.
Midtown Exchange Commons/Sheraton Hotel
$74M combined QEI
- $100M portion of the largest redevelopment project in Minnesota history at approximately $200M overall.
- Presented planning challenge to close 6 independent NMTC transactions involving 5 allocatees, which allocations were committed piece by piece throughout the process.
University Enterprise Laboratories
St. Paul, MN
- Existing office space converted to biotech incubator site affiliated with the University of Minnesota.
- Leveraged NMTC structure using variable-rate credit-enhanced bonds, a municipal guarantee, private donations, and nonprofit sponsorship.