ON TARGET New Start Community Development. ON TARGET.
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ON TARGET New Start Community Development
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Transcript of ON TARGET New Start Community Development. ON TARGET.
ON TARGETNew Start Community Development
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What We Do- We assist developers, municipalities and non-profits in creating, developing and completing projects with complex capital stacking. In addition, we self-develop as needed.
Summary
New Start Community Development- US Treasury certified “Community Development Entity” able to allocate equity investments raised through New Markets Tax Credits
Service Area- Primarily the State of Alabama with projects throughout the Southern United States
How we do it– We deliver funding from Private Investors, Tax Credit Investors, Federal grants, Cooperative and Improvement Districts and multiple other sources.
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Example Project
Bradenton Florida
Desperate need of Healthy Food Alternatives.Distressed Census TractTrying to bring Grocery Store to area for 5 yearsDevelopers could not make the project happenEnter New Start Community Development
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Land $ 800,000Construction $ 2,500,000Soft Costs $ 900,000Infrastructure $ 500,000TI & leasing $ 300,000Other Fees $ 800,000Total Cost $ 5,800,000
NOI $ 300,000Investment Value (9%) $ 3,300,000
Loan to Investment Value 175%
Problem: How do you pay for a $5.8M project when it’s worth $3.3M to the investment world?
Solution:
Project Cost $ 5,800,000NMTC Equity $ (1,800,000)HHS Grant $ (700,000)State NMTC $ (900,000)City TIFF $ (300,000)Total Cost $ 2,100,000
NOI $ 300,000Investment Value (9%) $ 3,300,000
Loan to Investment Value 65%
Actual Project Numbers
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36%
5%1
6%
31%
12%
Leveraged NMTC HHR City St NMTC
Financing Model
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A True Public Private Partnership
Developer• Leveraged Loan• Cash
Federal• NMTC &
Grant
State•NMTC
City•Tiff
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PATRICK A. DENNEY
NEW START COMMUNITY DEVELOPMENT100 41ST STREET SOUTHBIRMINGHAM, AL 35222
