Transaction to help fund the redevelopment of a vacant 188,000 square building that will be leased to DREAM, a network of public charter schools and youth development organization
New York, NY, Feb. 17 12, 2022 (GLOBE NEWSWIRE) — The New York City Regional Center is pleased to announce the closing of a New Market Tax Credit transaction to assist in the redevelopment of a vacant South Bronx building that will be leased to the new DREAM Charter School. The transaction utilized a portion of $50 million in New Market Tax Credits (“NMTC”) granted in 2021 by the United States Department of Treasury to NYCR-CDE, a community development entity operated by the New York City Regional Center. To receive an NMTC grant, the New York City regional center had to demonstrate its mission and track record of providing investment capital to low-income communities.
NYCR-CDE provided $23 million in NMTC allocation to help redevelop the 188,000 square foot “History Channel Building” that sat vacant for 20 years in the South Bronx. The building was once an ice warehouse built at the turn of the century by American brewer Jacob Ruppert, Jr. Ruppert is best known as the former owner of the New York Yankees and the man who built the first Yankee Stadium. The redeveloped property will be transformed into a new, state-of-the-art K-12 charter school for DREAM and will allow the organization to increase its capacity to serve 1,300 students annually. The project includes the redevelopment of the existing five floors of the building and the conversion of the roof into a recreational space for students.
DREAM is a 30-year-old public charter school network and youth development organization operating in East Harlem and the South Bronx. Originally founded as Harlem RBI, DREAM traces its beginnings to 1991, when a group of volunteers transformed an abandoned, trash-strewn field into two East Harlem youth baseball diamonds. Thirty years later, the organization serves thousands of children across East Harlem and the South Bronx through a network of five free, extended day and extended year DREAM charter schools and community sports-based youth development programs. At DREAM, 95% of students are black and/or Hispanic; 9 out of 10 qualify for free or reduced meal programs; and 27% identified special needs. By developing a holistic child model that meets each child’s unique academic and social needs, DREAM creates a future where all children are equipped to achieve their vision of success.
“We are very pleased to support this important redevelopment,” said NYCRC Co-CEO George Olsen. “And we can’t wait to see this building transformed into a wonderful new home for DREAM students.”
The NMTC program was created by Congress in 2000 with the goal of stimulating private investment and economic growth in low-income neighborhoods and rural communities that lack access to capital. Historically, low-income communities often struggle to attract investment. The NMTC program aims to break this cycle of divestment by attracting the private investment needed to reinvigorate struggling local economies. Private capital is incentivized by providing federal income tax credits to investors in exchange for equity investments in low-income neighborhoods.
Since 2016, an entity managed by the New York regional center has received four NMTC awards from the US Treasury for a total of $165 million. These grants have provided a unique opportunity for the New York City Regional Center to further its mission of providing funding that creates jobs and stimulates community revitalization in underserved areas of New York City. These allocations are among the first managed by an EB-5 regional center.
About the New York Regional Center
The New York City Regional Center (“NYCRC”) was approved by the United States Citizenship and Immigration Services in 2008 to secure foreign investment in real estate and infrastructure projects under the EB-5 program Immigrant Investor. Congress created the EB-5 program to stimulate economic development through foreign investment. The program’s mandate is to use foreign investment to spur job creation while simultaneously providing eligible foreign investors with the opportunity to become lawful permanent residents of the United States. NYCRC was the first approved EB-5 Regional Center in New York City.
Over the past 14 years, NYCRC has invested more than $1.5 billion in EB-5 capital to work on a wide range of infrastructure and real estate projects in New York City. Much of this capital has been invested in underserved areas that need long-term economic growth. Examples include:
$767 million to fund construction, redevelopment and infrastructure projects in Brooklyn, including seven projects totaling $339 million in the Brooklyn Navy Yard;
$108.5 million to fund construction and redevelopment projects in Washington Heights (an empowerment area in Upper Manhattan);
$232.5 million to fund the construction of a public high-speed wireless infrastructure network in New York City subway stations and along city streets; and,
$220 million to fund construction from the ground up in the Bronx.
Nineteen completed projects have successfully used NYCRC EB-5 funding to help construct more than 3.8 million square feet of new developments and renovations as well as infrastructure upgrades.
In addition to fueling economic development, NYCRC offerings have helped more than 5,250 people become permanent residents of the United States through the EB-5 Immigrant Investor Program.
About the New Business Tax Credit Program
Established by Congress in 2000, the NMTC program helps economically distressed communities attract private investment capital. This federal tax credit helps fill project financing gaps by allowing investors to make larger investments than would otherwise be possible. Communities benefit from the jobs associated with investments in manufacturing, retail and technology. Communities also benefit from better access to housing and public facilities for health, education and childcare.
Through the NMTC program, the United States Department of the Treasury awards tax credit authority to Community Development Entities (“CDEs”) through a competitive application process. CDEs are financial intermediaries through which investment capital flows from an investor to a qualified business located in a low-income community. CDEs use their authority to offer tax credits to investors in exchange for holdings in the CDE. The tax credit granted to the investor amounts to 39% of the cost of the investment and is claimed over a period of seven years. Through these capital investments, CDEs can provide loans and investments to businesses operating in distressed areas that have better rates, terms and flexibility than the market.
Since 2001, the NMTC program has generated more than $55.9 billion in investments in low-income communities and businesses, resulting in the construction of 63 million square feet of manufacturing space, 98 million square feet of office space and 69 million square feet of retail. space out.
NYCR-CDE, LLC is an Equal Opportunity Provider.
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