Tax Advantage Group secures funding for low-income community development project
October 30, 2018
Thanks to a financing tool designed to attract private investments to Low-Income Communities, the YMCA of Southwestern Indiana is building a new 80,600-square-foot health and wellness center in downtown Evansville, Indiana. Financial consultants at Tax Advantage Group (TAG) secured $9 million in New Markets Tax Credit (NMTC) Allocation for the $17 million project.
The area of development is in a federally designated Promise Zone where 37.5 percent of the population live below the poverty level. With a total capacity of nearly 35,000 clients annually, the new St. Vincent Evansville YMCA will include a pool, multiple gyms, wellness area, group exercise rooms, STEM Lab, a teaching kitchen, expanded child watch and youth activity areas and an enrichment center. The Y will also lease approximately 10,000 sq. ft. to St. Vincent Evansville to provide primary health care and physical therapy services in this Federal Medically Underserved Area.
Additional funding for the project was provided by Cinnaire, a Community Development Entity located in Lansing, Michigan; PNC New Markets Investment Partners; Old National Bank; and Indiana’s Regional Cities program, which was created to support economic development endeavors across Indiana.
“For years we have operated in a facility that combines three aging buildings that were built for three different purposes. These buildings have served us well, but now is the time to invest in creating a facility that is better able to meet the needs of our community,” said Derrick Stewart, CEO of the YMCA of Southwestern Indiana. “By utilizing New Markets Tax Credits, not only will we be able to better serve our current and future members, but in coordination with Cinnaire, we will be able to provide more critical services to the low-income residents of downtown Evansville.”
Pete Byford, senior NMTC program manager at TAG, said, “The unique health and wellness services planned for this new downtown Y facility will have a tremendous impact on thousands of lives. TAG considers projects like this one particularly rewarding because of their potential to have a transformative effect for Low-Income Communities.”
Since 2004, TAG has provided financial support for 11 health and wellness projects – including five YMCAs – that collectively serve over 140,000 clients in Indiana, Kentucky, Louisiana, North Carolina, South Carolina and Virginia.
About YMCA of Southwestern Indiana
The YMCA of Southwestern Indiana, Inc., following the example of Jesus Christ, responds to community needs by serving all people, especially youth, through relationships and activities that promote healthy spirit, mind, and body. Families are invited to learn more about the YMCA and our community outreach by visiting www.ymcaswin.org.
About Tax Advantage Group, LLC
Headquartered in Greenville, S.C., Tax Advantage Group (TAG) is one of the country’s most successful consulting firms specializing in New Markets Tax Credits, helping nonprofit and for-profit organizations access capital and transform communities. Since 2004, TAG has played an instrumental role in securing funding for over $1.4 billion for community projects across the United States. In addition, TAG manages $450 million of NMTC assets. For information, visit www.taxadvantagegroup.com.
