New Market Tax Credit Program Continues to Create Economic Opportunities
PHOENIX, Ariz. (October 27, 2014) -- The Phoenix Community Development and Investment Corporation (PCDIC) confirms forward momentum on the $41 Million (MM) revitalization of a beloved downtown landmark – the historic Monroe building. CSM Corporation recently closed on New Markets Tax Credit financing (NMTC), obtained its initial permit, and plans to begin construction January 2015 on the Hilton Garden Inn Phoenix Downtown.
“CSM is excited to bring this historic building, which has sat vacant for more than 20 years, back to its former glory,” said Bob Micklash, President of CSM’s lodging division. “We have had great success with historic renovations and expect much of the same with the development of the Hilton Garden Inn Phoenix Downtown.”
To bring the building back to its former glory, CSM plans a renovation of the historic Art Deco exterior as well as a full renovation of the interior, including the magnificent former bank lobby inside, which will serve as the main reception and gathering place for hotel guests. The Hilton Garden Inn Phoenix Downtown will consist of 170 guestrooms on 12 floors, a rooftop terrace, meeting space, a business center, fitness center and on-site parking. The project will also include retail space along Central Avenue.
"Projects like the historic Monroe building demonstrate our commitment to creating jobs and revitalizing downtown. With our NMTC allocation, the PCDIC board is working with our investor partners to create economic opportunities for under-served communities in Phoenix by providing below market rate commercial real estate loans," said Pete Garcia, PCDIC Board member, and President & CEO of Victoria Foundation
This $41MM project secured NMTC financing from PCDIC, U.S. Bancorp Community Development Corporation (USBCDC), from St. Louis and with U.S. Bank of Minneapolis.
“U.S. Bank is focused on revitalizing struggling communities by investing in important projects such as the historic Monroe Building,” Maria Bustria-Glickman, vice president of USBCDC, said. “The project is particularly exciting because it preserves an 82- year- old land mark in downtown while also bringing jobs and visitors to the region.”
PCDIC anticipates the economic impact to be significant, creating new jobs, and generating millions in wages and economic activity. In addition, the city, county and state will benefit from taxes associated with hotel operations, including sales tax, bed tax, parking revenues and property tax.
“This public/private partnership enhances downtown Phoenix's redevelopment and renaissance efforts, creates a sustainable tax revenue source, and long-term jobs, while preserving a historically valued building from our past.” Said George Dean, PCDIC Board member and President & CEO of the Greater Phoenix Urban League.
The PCDIC NMTC Program seeks to provide below market rate commercial real estate loans to developers, small businesses, and mission-focused nonprofits to encourage neighborhood revitalization and stabilization in qualified low income communities in Maricopa County. While the
PCDIC has received $263MM in NMTC allocations since 2002, which has been used to provide 27 projects valued at $787MM with $323MM in NMTC financing. Projects include local non-profits, hoteliers, industrial, commercial offices and medical facilities.
Examples of PCDIC back NMTC financed projects include the following with total project costs:
· Native American Connections, 4520 N. Central Ave., $7.7MM
· Hacienda Skilled Nursing Center, 1402 E. South Mountain Road, $9.2MM
· Arizona Bridge to Independent Living, 5025 E. Washington St., $23.9MM
· YMCA, N. 3825 67th Ave., $11.5MM
· Phoenix Rescue Mission, Changing Hands, 338 N. 15th Ave. $18.8MM
· Spectrum Mall, 1703 W. Bethany Home Road, $91.5MM
· Clarendon Hotel, 410 W. Clarendon Ave., $7.3MM
· Riverside Industrial Center (new Amazon center), 4950 W. Mohave St., $48MM
· U of Arizona Medical School, 445 N 5th Street, $37.7MM
· Cityscape Loans
o Office Tower, 1 E. Washington St, $262MM
o Retail, 11 W. Washington St, $59.5MM
o Palomar Hotel, 2 E. Jefferson St, $102.5MM
About Phoenix Community Development and Investment Corporation
Phoenix Community Development Investment Corporation (PCDIC) is a local 501© 3 nonprofit which has received $263MM in NMTC allocations since 2002. PCDIC targets commercial real estate loans within Maricopa County to encourage private sector investment in qualified low-income communities. Since 2002, PCDIC has attracted more than $464MM in additional private investment, created 9,390 new jobs, 3,877 constructions jobs and retained 171 jobs in Phoenix, Ariz.
For more information visit PhoenixNewMarkets.com or call Roberto Franco at 602-495-5247.
About CSM Corporation
Founded in 1976, CSM Corporation is the one source for real estate needs of people, businesses and communities. The company develops, owns and manages places where people work, visit and live. CSM’s expansive reach in retail, office and industrial properties includes more than 9 million square feet of commercial space. Its hospitality arm offers full-service, in-house offerings to a portfolio of 39 hotels totaling more than 5,400 rooms. On the residential side, CSM offers property management for 17 apartment communities. CSM Corporation is known for its business ethos of treating customers and associates with integrity and respect, and for their commitment to the future of the communities in which they live and work. For more information on CSM Corporation, visit www.csmcorp.net or visit us on Facebook at https://www.facebook.com/CSMCorporation.
CSM Contact: Christy Earl, email@example.com, 972-415-8902