Projects that Make an Impact
Penn Highland (Dubois, PA)
Represented the Sponsor, Penn Highlands Healthcare (PHH), to develop a financial strategy to remedy a $10 million gap in funding required to complete the Behavioral Health Hospital (BHH) expansion at Penn Highland’s Dubois East Campus in Dubois, PA. BWC secured $27 million in New Market Tax Credit (NMTC) allocation, assembled and led the deal team in closing the financing to develop the three-story healthcare facility. BWC’s creative approach to structuring allowed the client to not only meet its funding objectives but manage its cash flow during the height of the pandemic’s impact on the healthcare sector by obtaining a $3 million pre-development loan. As a result of the transactions, PHH expanded services, added more capacity, and better access to care for local communities.
The BHH addition is 51,719 SF and adds an incremental 60 beds to support adult and pediatric needs. The new facility drives economic impacts such as job creation and business expansion. Approximately 100 additional physicians and advanced practice providers and around 200 professional staff members will be hired in the nursing and support services fields. It will also bring over 145 construction jobs.
PHH was formed in October of 2011, bringing together rural hospitals to provide residents with access to the region’s best healthcare, physicians, nursing homes, home care/private duty agencies, and other services.
AG GASTON BOYS & GIRLS CLUB (BIRMINGHAM, AL)
Serving as NMTC Consultant for project Sponsor to secure $9 million in NMTC allocation to develop and operate a new facility at the Birmingham CrossPlex in Birmingham, AL. The new, larger Club facility will replace an aging and overcrowded existing clubhouse and is anticipated to service an average daily attendance of 450 children and youth. The new modern facility will have amenities to include a Teen Center, Café with a Commercial Kitchen and Integrative Performance Space. This NMTC transaction leverages a current multi-year funding capital campaign by AG Gaston as well as local partnerships and collaboration. This transaction will close in 2018.
TEXAS COLLEGE (TYLER, TX)
Served as NMTC and HTC Consultant for Texas College to secure a $7 million NMTC financing and generate an estimated $900,000 in HTC equity to renovate and update the administrative building into an academic and administrative building that will serve present and past students as well as the local community with continuing education and career placement services. The building is scheduled for completion December 2018.
NOVUS ADVANCED MANUFACTURING (ST. JOSEPH, TN)
Served as NMTC Consultant for project Sponsor, minority business owner, on $17 million project funding for the expansion of its current operations in St. Joseph, TN. This financing was made possible using federal New Markets Tax Credit (NMTC) funding. The total contemplated expansion project is approximately $25 million and the expansion is expected to be completed in 2019.
The contemplated expansion project consists of acquiring an 18,000 SF manufacturing plant located in an economically distressed areas in St. Joseph, TN. The 3-acre site will be expanded by constructing two new buildings that combine for the addition of 40,000 SF. Once completed, this investment will have both short- and long-term economic impact for Lawrence County. The project consists of gutting the entire existing building, installing a new electrical grid and wi-fi infrastructure and upfitting with state-of-the art roller-form digital equipment. These machines increase production efficiency by approximately 30 percent by automating changes in gauge sizes versus having to shut down, retool, and reboot older roller form machines over a period of two to three hours. The expanded plant will also serve as the first training site for innovative framing and cosntruction for hoteliers and other retailers. The expansion project is expected to create as many as 150 new good-paying jobs and add momentum to attracting additional private capital investment to St. Joseph, TN.
CATHEDRAL HIGH SCHOOL (LOS ANGELES, CA)
Served as NMTC Consultant for project Sponsor in securing $18 million in NMTC allocation for a new state-of-the-art 21st Century Performing Arts Center. The $20 million, 48,000 SF Performing Arts Center and Theater (PAC) includes: studio space; classrooms for musical instruction, art production and theater arts; television production facilities; and a 350-seat theatre equipped with performance stage, scenery construction shop, dressing rooms, and other theater related offices. The project will allow CHS to expand its educational curriculum with an emphasis on the fine arts, performing arts, and media production. Curriculum and learning opportunities provided by PAC are designed to prepare students for opportunities in journalism, public relations, advertising, marketing, and multimedia content production. In addition to the educational outcomes supported by the project, the PAC will provide community residents with professional and career development opportunities and serve as a community resource center for other service providing non-profit and impact agencies. Closed in 2018.
CITY OF ROCKY MOUNT (NC)
Guided and advised the City of Rocky Mount, NC in securing $45 million in NMTC financing for a 154,000 SF multi-purpose hybrid Epicenter for Health Wellness and Sports. The facility serves as a community asset and includes a 4,500 SF health & wellness clinic that will provide medical services to community members. This initiative is part of a larger vision by City of Rocky Mount leadership to revitalize and transform Downtown Rocky Mount with a solution that will address economic and health disparities of its low-income community (LIC) and low-income people (LIP). The health clinic will provide new and preventative health services such as digital mammography, vaccination regimens and annual checkups. The new Events Center not only will drive economic development, but also will offer truly a broad-based program that satisfies multiple community needs and that delivers previously unmet services, which include indoor sports and games, civic event center, and access to affordable healthcare services.
The project is located in a highly distressed census tract and will serve as an engine for further economic development by hosting an enterprise that creates jobs, drives new business development and expands existing businesses. The Events Center opened in October 2018.
TEXAS COLLEGE (TYLER, TX)
Advised College through $19 million in HBCU Capital Loan for new 214-bed housing and subsequently worked to expand and connect the dining facility to the Student Activity Center (SAC) and augment every building on campus. Project financing included the use of approximately $1 million dollars in State Historic Tax Credits to repair and enhance an existing facility, which eliminated the need for incremental debt to complete this respective component of the overall project. BWC worked closely with Texas College to successfully develop and structure a viable CIP, go through the HBCU Capital Loan program, execute on delivering the contemplated capital improvement project (CIP), and assist with post-construction compliance.
The multi-facility CIP initiative consisted of a new 214-bed Residence Hall and a Student Activity Center (SAC) with an additional 100 seats of dining capacity. The CIP also entailed renovations and improvements to two existing facilities (Fair Hall and Daniel Hall). The renovations include bathroom improvements and new room furniture for Fair’s 114-beds and repurposing of 46-beds in Daniel for classroom space, leaving 80-beds. A third building, the athletic building, was converted to Music Hall to provide academic and learning space. The CIP also included a Wellness and Campus Fitness facility and included a 1/3-mile walking trail in order to tie the new building and improvements to the existing campus.
CLAFLIN UNIVERSITY (ORANGEBURG, SC)
Advised the University on a $9.5 million project to expand an existing campus facility and create a full- service Health and Wellness Center Complex. Project financing included $3 million in federal New Market Tax Credit equity, which lowered to overall cost of the project. The facility increases the University’s capacity to address the health and wellness needs of the university community and to serve residents of the Greater Orangeburg community in life and health enhancing activities and training.
The project consisted of expanding the Jonas T. Kennedy Health and Physical Education Center into an approximately 31,000 SF two-story building with office and classroom space for training, forums and research. The renovated and improved facility also included a full-service demonstration kitchen to advance nutrition and dietary studies. Fitness areas for integrated wellness, such as a gymnastics and aerobics room, a weight room, an intramural sports court, and an indoor track are also part of the renovated Health and Wellness Center Complex. The expanded Health and Wellness Center Complex will offer a one-stop shop for holistic learning, community engagement and life-long wellness.
CLAFLIN UNIVERSITY (ORANGEBURG, SC)
Advised the College through USDA Community Facility (CF) loan program for $3 million water infrastructure. The project allowed the University to replace its underground water system piping to meet the demand of its expanded enrollment of more than 2,000 students and for planned facility expansion. This project was the first such USDA utilities financing in the country for a higher education, HBCU, institution of higher education.
BWC helped usher the University through the USDA CF Direct program as the utility project could not be financed via the HBCU Capital Loan program. Furthermore, no other viable funding and financing options were available. As such, the University successfully secured a relatively favorable rate, 40-year USDA loan to update its utilities (e.g. replace underground water lines), and as a result projected annual utilities savings are expected to be around $272,000.
MILES COLLEGE (FAIRFIELD, AL)
Advised the College on securing financing for the new construction of three facilities. The financing structure consisted of tax-exempt bonds and State New Market Tax Credit financing for the construction of a Welcome and Admission Center, student housing, and a student center. The total development cost for the project was approximately $25 million and the College successfully obtained the required consent from HBCU Capital Loan Program. The project was financed in a two-phased structured, which entailed issuing tax-exempt bonds through Regions Bank (Phase I) and working with community development entity (CDE) Stonehenge Capital and utilizing state New Market Tax Credits (NMTC).
Impacts from the project included generating more than 100 jobs in Fairfield, AL along with increasing incremental revenue to the local community by an estimated $250,000. The use of NMTCs brought $2.5 million in equity to the project and the creative financing for the project (e.g. incorporating non-traditional funding sources) created nearly $1 million in financial savings versus traditional financing (e.g. principal and interest payments) over the initial seven years of the project.
EDGECOMBE COUNTY, NC
Advised Edgecombe Community College on $11.3 million financing through NMTC equity and state grant funding (Golden Leaf Grant) to develop a 44,978 SF Biotech and Medical Simulation Center. The project was completed and delivered ahead of schedule and under budget, allowing the project Sponsor, Horizon Health Partners, to utilize the remaining funding for working capital over the five-year compliance period.
The project met, and exceeded in some areas, on agreed upon community benefits related to the project. A total of 100 full-time equivalent (FTE) predevelopment or construction jobs were created, of which at least one-third of the jobs were filled by low-income persons or persons from low-income communities. The project created and/or retained at least 31 permanent FTE jobs and will create a highly trained workforce and the needed human capital to provide healthcare in low-income communities and to the residents who live in those communities.
BWC worked closely with the project Sponsor to structure and secure financing (e.g. NMTCs and state grant funding), execute on delivering the project (ahead of time and under budget), and assist with post-delivery activities, which include providing ongoing management and NMTC compliance administration, completing quarterly financial reconciliations and annual compliance reporting, and monitoring grant deliverables.