Civic San Diego Economic Growth and Neighborhood Investment Fund (Civic), Border Communities Capital Company, and TELACU announced today the closing of a New Markets Tax Credit (NMTC) investment of $36 million for a Workforce Development Accelerator and Community Arts & Culture Innovation Center. Total project acquisition, tenant improvements and financing costs amount to approximately $65 million. The three Community Development Entities (CDEs) partnered to provide the $36 million in NMTC allocation, with U.S. Bank as NMTC investor, to support the construction of the new center and free up capital to support an extensive catalogue of educational programming.
The University of California San Diego will be extending its reach regionwide by locating a major center in San Diego’s East Village neighborhood. Managed by UC San Diego Extension, UCSD will use this new strategically-located 66,000 SF facility to create a Workforce Development Accelerator and Community Arts & Culture Innovation Center at a site that is accessible to low-income community members via multiple public transit lines. This project will allow new populations and constituencies from San Diego’s Promise Zone and beyond to be brought into UCSD’s regional economic, academic and cultural spheres of influence. This includes a wide "lifespan" of individuals, from kindergarten through 50+ populations. The project will serve thousands of students and local community members annually.
“After years of researching and partnering with business, technology and medical industry leaders across San Diego, I couldn’t be more excited about Extension’s expanding role as UC San Diego’s public facing community educator,” said Mary Walshok, who has been dean of UC San Diego Extension for 40 years. “This project is an affirmation of UC San Diego’s commitment to be a vital resource within the community as San Diego maintains its status as one of the most enviable places to live and work in the world.”
“We are very excited to be a part of this new project in the East Village neighborhood,” said Andrew Phillips, President of Civic. “This project gives residents of the San Diego Promise Zone and beyond access to UCSD’s programs and will provide unemployed and underemployed community members the opportunity to achieve academic certificates and well-paying jobs on an accelerated basis.”
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in vehicles known as Community Development Entities (CDEs). The CDEs in turn use the capital raised to make investments in low-income communities.
Targeted Investment Requirements
- For-profit or non-profit entities are eligible
- Total project cost in the $8 - $20 million range (NMTC equity typically provides about 20%)
- Funding is for real estate development or to support ongoing operations
- The balance of project financing has been identified
- Site control and entitlements are already in place
- Project needs to provide a strong community benefit, including job creation
- Project has local community support
Projects located in highly distressed areas in the County of San Diego that have one or more of the following characteristics:
- Poverty rates greater than 30%
- Unemployment rates at least 1.5 times the national average
- Median income less than 60% of area median income
- Other distress factors such as designated food deserts or medically underserved areas
Civic is actively working to identify qualified projects to receive this type of investment. For more information on NMTC funding and the qualification requirements please contact Joanna Whitley Broussard at email@example.com.