Birmingham, AL, July 27, 2017 (GLOBE NEWSWIRE) -- FOR IMMEDIATE RELEASE
7.27.2017
An investment announced today puts in place the final financing for completion of Birmingham CrossPlex Village, a new commercial development at the site of the CrossPlex sports center, a venue for the upcoming 2021 World Games.
Stonehenge Capital announced it has provided $7 million in New Markets Tax Credits to help finance the project at CrossPlex, home to the fastest indoor hydraulic tracks in the world, an Olympic-size swimming pool, nine-volleyball court venue and 5,000-seat basketball arena. The new commercial development will include a Comfort Inn & Suites, a Starbucks training center and a restaurant row, adding critical services and amenities in the area. Enhanced Capital and the Empowerment Reinvestment Fund provided $13.5 million in additional New Market Tax Credit financing for the project.
Located in the Five Points West area, the CrossPlex anchors the city of Birmingham's efforts to revitalize a historic African American neighborhood that has experienced decades of economic decline. However, the development recently stalled because of a lack of investment capital. Stonehenge’s New Markets Tax Credit investment will bridge the financing gap and allow for completion of the project – which is expected to create 130 new jobs and to have a positive catalytic economic impact in a predominantly minority community.
“Stonehenge Capital is a highly valued partner as we bring a hotel, restaurants, and other businesses to the CrossPlex Village,” Birmingham Mayor William A. Bell Sr. said. “Without their financial expertise and dedication, we would not have had the necessary tools to bring those businesses and hundreds of jobs to the site. We already have a nationally acclaimed facility for athletic competition at the CrossPlex, and with our financing in place we are moving at a fast pace to bring the amenities and services that will not only serve the athletes and guests, but also our residents in the Five Points West area and throughout the city.”
The New Markets Tax Credit allocation is expected to result in a significant impact to the surrounding area. CrossPlex Village is located in a low-income census tract with a 98 percent minority population and with 80 percent minority employment participation.
“This investment will allow us to continue our momentum in adding critical services and amenities while creating jobs and catalyzing additional economic opportunities in our community,” said Bob Nesbitt, the developer and owner of the Comfort Inn & Suites spearheading the project. “The primary challenge in urban development is finding the appropriate capitalization methods and sources. As an African American business owner in the community, I’m pleased to see this project moving forward.”
Investing in minority-owned businesses and in projects producing a significant impact for minority communities is a key focus for Stonehenge Community Development, a subsidiary of Stonehenge Capital. Access to capital remains among the largest barriers for minority business enterprises to grow, according to Minority Business Development Agency at the U.S. Department of Commerce.
“Stonehenge strives to identify minority communities with a need for business investment and help them overcome the disparities they face with economic opportunities,” said L’Quentus Thomas, Director of Stonehenge Community Development, a subsidiary of Stonehenge Capital. “With this investment, CrossPlex Village will become another example of the transformative impact New Markets Tax Credits can have in minority and low-income communities.”
U.S. Bancorp Community Development Corporation, a division of U.S. Bank, invested equity generated from the New Markets Tax Credits for the construction of CrossPlex.
“The growth of CrossPlex Village is a vital driver of economic development that will bring jobs and spin-off businesses to this underserved, predominantly African American community,” said Jennifer Westerbeck, Vice President of the U.S. Bancorp Community Development Corporation. “We are proud to help bring CrossPlex’s expansion to life as a trusted partner of the development team, and we’re pleased to support the city of Birmingham in serving its residents and the many visitors it will host during the 2021 World Games.”
About Stonehenge Capital:
Since 1999, Stonehenge (http://www.stonehengecapital.com/) has operated at the nexus of finance and community development. Stonehenge invests in underserved communities through community development programs in order to improve the economic wellness of the communities and residents. Today, the firm’s values remain unchanged and Stonehenge’s role as a catalyst in the success of individuals, businesses and communities is evident through the firm’s three core business lines: growth capital, tax credit services and community development. Stonehenge utilizes a variety of debt and equity financings to spur economic growth across the country, and has offices in Baton Rouge, New York, Dallas and other locations.
About U.S. Bancorp Community Development Corporation:
With $23 billion in managed assets as of March 31, 2017, 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 have contributed 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.