GNMO II deploys $10 million in new markets tax credits for Spartanburg, S.C. project
March 29, 2016
Greenville New Markets Opportunity II (GNMO II), a Community Development Entity (CDE) managed by taxadvantagegroup and Greenville Local Development Corporation in Greenville, S.C., has deployed $10 million of New Markets Tax Credit (NMTC) allocation to OTO Development for the construction of a 114-room AC Hotel by Marriott in downtown Spartanburg, S.C. The full-service hotel will include a signature AC Kitchen restaurant, fitness center, business center, approximately 2,500 sq. ft. of meeting space, and typical back-of-house services and facilities.
The project is being developed by OTO Development as a way to energize revitalization of downtown Spartanburg. While economic growth in the area is gaining momentum, the project is located in an Appalachian Regional Commission Distressed Area, and some buildings still remain vacant and other obsolete structures have been demolished or await redevelopment. The AC Hotel will serve as a catalyst for the community and as a visual beacon and gateway anchor to the west end of downtown.
The economic impact of this project is meaningful, with GNMO II funds supporting 130 direct quality jobs and permanent jobs paying a wage significantly higher than the area’s per capita income of $3.32 per hour. To encourage accessibility of jobs to local residents and to cultivate a highly-skilled workforce, OTO Development will establish an apprenticeship program with Apprenticeship Carolina and Spartanburg Community College. Apprenticeships are an “earn while you learn” training model that combines structured on the job training, job related education, and a scalable wage progression. Companies sponsoring registered apprenticeship programs enjoy a cluster of skilled workers who represent potential leaders for the organization.
“This project is a wonderful example of the benefits New Markets Tax Credits can have on a local economy,” said taxadvantagegroup President Tammy Propst, who administers the GNMO II fund. “We are indebted toU.S. Senators Tim Scott and Lindsey Graham and U.S. Congressman Trey Gowdy for helping to secure the GNMO II allocation, and to our local partners for their support of targeting these funds for thousands of deserving citizens in Spartanburg County.”
About OTO Development
Established in 2004, OTO Development is an award-winning, rapidly growing hotel development and management company. Our industry leadership position is anchored by a portfolio of great hotels managed by exceptional people. In the past ten years, OTO Development has developed over 60 hotels and currently operates portfolios of hotels for a publicly traded REIT, private equity firms and high net worth individuals. Today, the company continues its impressive growth with an extensive pipeline of urban new development projects inSan Francisco, Los Angeles, Manhattan, South Florida and Washington, DC. For more information about OTO Development, please visit otodevelopment.com.
About GNMO II
Greenville New Markets Opportunity II, LLC (GNMO II) is a Community Development Entity under the provisions of the Community Development Financial Institutions Fund, which since its inception, has been awarded $73 million in allocation of New Markets Tax Credits. GNMO II’s mission is to serve and provide investment capital for operating businesses and real estate development projects in low-income communities across South Carolina. GNMO II affiliates are the Greenville Local Development Corporation and taxadvantagegroup.
About Greenville Local Development Corporation (GLDC)
Founded in 1979, Greenville Local Development Corporation (GLDC), a 501(c)(3) non-profit, was established by a group of committed community and business leaders in Greenville, SC to address obstacles faced by businesses and community based organizations in obtaining conventional financing. Since inception, GLDC has been working to provide financial assistance, real estate development coordination, and strategic guidance for economic development projects and business expansions.
About taxadvantagegroup
Headquartered in Greenville, S.C., taxadvantagegroup (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 helped secure funding for over $1 billion for community projects across the United States. In addition, tag provides compliance and asset management services on $290 millionof NMTC assets. The depth and breadth of services provided by tag is unsurpassed in the industry and includesNew Markets Tax Credit Allocation Applications; NMTC Deployment; CDE Compliance and Asset Management; and Outreach Strategy Development.
