Community Development Entity Deploys $22 Million In New Markets Tax Credits

GREENVILLE, S.C., (Feb. 16, 2015) — Greenville New Markets Opportunity II (GNMO II), a Community Development Entity (CDE) managed by taxadvantagegroup and Greenville Local Development Corporation in Greenville, S.C., has deployed $22 million of New Markets Tax Credit (NMTC) allocation into three projects located in Greenville, Oconee and Spartanburg counties. The funds are supplementing $37.8 million in total combined project costs, supporting 610 quality jobs, and helping to create or redevelop 205,530 square feet of commercial space within the Appalachian Regional Commission (ARC) area.

The projects and amount of GNMO II NMTC funding received by each are:  

Claussen Bakery Building, $5 million (Greenville County)

Closing Date: December 23, 2014

Investor: Capital One

The Claussen Bakery project is the adaptive reuse of the 1930’s family-owned bakery building located on Augusta St. in Greenville’s West End district.  Abandoned for several years, the Bakery was identified by the development team — 400 Augusta Street Investors — and the City of Greenville as a unique opportunity to reuse the 84-year-old facility.  The structure provides 38,530 sq. ft. of multi-use space on the second floor, which will be occupied by McMillan, Pazdan, Smith Architecture, and 16,500 sq. ft. of first floor office space for other locally-owned businesses. In addition to providing below-market rent prices to first floor tenants, the development team will partner with neighboring Greenville High School to provide internships.

Upward Star Center, $10 million (Spartanburg County)

Closing Date: January 23, 2015

Investor: SunTrust

The Upward Star Center is the home of Upward Sports, the world’s largest Christian sports league for young athletes.           The 120,000-sq.-ft. facility provides health and wellness outcomes for youth within the community through participation in sports programs and leadership training. Upward Sports expects to reach 16,000 youth by the end of the Center’s first year of operation. In addition, the Spartanburg Regional Health Services District has signed a tenant lease for professional orthopedic services. The facility expects to treat 3,800 patients in its first year.

TDC Cutting Tools and Greenfield Industries, $7 million (Oconee County)

Closing Date: January 30, 2015

Investor: Bank of America

TDC Cutting Tools, a global leader in cutting tools manufacturing, is undergoing an $11.7 million expansion project in non-metropolitan Oconee County.  Supporting 302 new and retained quality jobs, the expansion will encompass 32,000-sq.-ft. of office space and a 15,000-sq.-ft., high-speed metals recycling facility.  Partnering with neighboring Tri-County Technical College, the project will utilize the Apprenticeship Carolina program to develop skilled labor for the company’s manufacturing demand.

Last year, GNMO II received a $38 million allocation of New Markets Tax Credits by the Community Development Financial Institution Fund of the U.S. Department of the Treasury. The funds are intended for the express use of economic development projects in severely distressed communities within a 10-county service area in Upstate South Carolina including Abbeville, Anderson, Cherokee, Greenville, Greenwood, Laurens, Oconee, Pickens, Spartanburg, and Union Counties.

David Barnett, GNMO II Board Member and President and CEO of Pinnacle Bank, said, “We advised the management team at taxadvantagegroup to dig deep to find projects that would be most worthy of Treasury’s specifications for GNMO II funds. There is no doubt these three mission-centric projects will serve as long-lasting examples of the extraordinary community benefits of NMTC funding.”

GNMO II Operating Officer and taxadvantagegroup (tag) President Tammy C. Propst, said, “None of this funding would be possible without the hard work of U.S. Senators Tim Scott and Lindsay Graham and U.S. Congressman Trey Gowdy. Last summer, GNMO II was the only CDE in South Carolina to receive an allocation of funding from Treasury and already the Upstate is reaping benefits in the form of new jobs; improved health and wellness services for citizens; and increased tax revenues for cities and counties.“