LONGVIEW, Texas, Dec. 17, 2019 /PRNewswire/ -- Los
Angeles-based National New Markets Fund, LLC has closed
$23 million in New Markets Tax Credit
(NMTC) allocation to expand the AAON Coil Products Inc. plant in
Longview, Texas (about 130 miles
east of Dallas).
The new $30 million, 195,000
square foot heating, ventilation and air conditioning manufacturing
facility will create 155 full-time jobs. It will be built adjacent
to AAON's existing 263,000 square foot manufacturing and warehouse
facility, which already has a workforce of approximately 400.
The project qualified for the federal NMTC program because it is
located in a highly distressed, low-income census tract. The local
poverty rate is 36.6 percent (three times the current national
average) while the unemployment rate is 18.9 percent (more than
five times the current national average).
"The $23 million tax credit
allocation from National New Markets Fund will enable us to create
high-quality jobs and bring new opportunity to the citizens of
Longview," said AAON Coil Products Inc. President Gary Fields. "This project is a great example of
how NMTCs can facilitate positive change in a community hit hard by
poverty."
The new jobs will provide good wages and extensive benefits,
with average annual employee compensation of approximately
$45,000. AAON will also offer job
training opportunities that include working with local workforce
development agencies and Kilgore
College-Longview to raise skill levels.
"This project will help Longview create a better, more
prosperous future," said National New Markets Fund President
Deborah La Franchi. "It embodies
everything we work so hard to accomplish with each of our NMTC
allocations."
The $23 million in New Markets Tax
Credits will be used to purchase equipment for the new facility
focused on multiple product lines, including AAON's new SA packaged
geothermal heat pump unit. The funding will also help upgrade
equipment at the existing Longview plant.
National New Markets Fund is the sole community development
entity (CDE) for the project. U.S. Bank serves as the tax credit
investor providing tax credit equity financing of $7.5 million.
"U.S. Bank is proud to help AAON Coil Products grow in
Longview," said Ashley Gebhard, a NMTC project manager with U.S.
Bancorp Community Development Corporation, the tax credit and
community investment subsidiary of U.S. Bank. "Investing in
projects that create skilled, well-paying jobs – especially in
rural areas – boosts economic development, helps individuals
achieve financial stability and benefits the entire community."
With the new AAON project, National New Markets Fund has
invested in seven projects across Texas totaling $116.7
million in NMTC allocation. In addition, its sister
American South Real Estate Fund (ASREF) has invested equity capital
in two projects in the state (The Park Village multifamily project
in Houston and the Lancaster Road
office project in South Dallas).
ASREF provides equity capital for projects in low and
moderate-income areas throughout a 10-state southern region.
Together, the two funds managed by parent company Strategic
Development Solutions have made a strong impact by facilitating
transformative projects in the Lone Star State.
"We have a long track record of success in Texas and across the Southern U.S.," added La
Franchi. "We look forward to continuing to grow our investment
portfolio with projects that revitalize communities and improve
lives."
About the U.S. Treasury Department's New Markets Tax Credit
(NMTC) Program
New Markets Tax Credits (NMTCs) were
established by Congress in 2000 to stimulate investment and
economic growth in designated low-income communities. They raise
investor capital and leverage public and private funding to provide
borrowers with financing in the form of favorable rates and
flexible below-market terms. The NMTC Program is administered by
the U.S. Treasury Department's Community Development Financial
Institutions Fund (CDFI Fund).
About AAON Coil Products, Inc.
AAON Coil Products,
Inc. is a subsidiary of AAON, Inc. Founded in 1988, AAON, Inc.
(NASDAQ: AAON) is engaged in the engineering, manufacturing,
marketing and sale of HVAC (heating, ventilation and air
conditioning) equipment for commercial use. For more information,
please visit www.AAON.com.
About National New Markets Fund
National New Markets
Fund, LLC invests in projects that foster job creation and overall
economic/social development in targeted low-income communities
nationwide. To date, it has received $542
million in New Markets Tax Credit (NMTC) allocation from the
U.S. Treasury's CDFI (Community Development Financial Institutions)
Fund. It was launched in 2005 as a partnership between Los Angeles-based Strategic Development
Solutions (SDS) and Boston-based
Economic Development International. More information about National
New Markets Fund is available at
http://www.sdsgroup.com/funds/national-new-markets-fund.
Information about its sister American South Real Estate Fund is
available at https://asref.com/.
About U.S. Bancorp Community Development Corporation
With $31.1 billion in managed assets
as of September 30, 2019, U.S.
Bancorp Community Development Corporation -- a subsidiary of U.S.
Bank -- provides innovative financing solutions for community
development projects across the country using state and federally
sponsored tax credit programs. USBCDC's commitments provide capital
investment to areas that need it the most and contribute to the
creation of new jobs, the rehabilitation of historic buildings, the
construction of needed affordable and market-rate homes, the
development of renewable energy facilities, and the generation of
commercial economic activity in underserved communities. Visit
USBCDC on the web at www.usbank.com/cdc.
Contact:
Erik Deutsch
(323) 851-2300 x112
erikd[at]excelpr[dot]com
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SOURCE National New Markets Fund, LLC