Our attorneys help clients screen potential NMTC transactions for eligibility to build a project pipeline. Eligibility screening includes whether projects are located in a qualified tract, exhibit the requisite distress criteria and align with our clients’ articulated strategies and impacts, consistent with its allocation agreement. We work with advisory boards and governing boards in presenting competing projects and their level of adherence with a CDE’s NMTC program details and specifics.
Our Representative Projects:
Harris Beach has helped many clients realize the benefits of the NMTC program, including the credit investor, the leveraged lender, the CDE and the developer. We have participated in NMTC transactions involving community investments with municipal and state agencies, regional development authorities, not-for-profit organizations, and regional and national companies. Our attorneys have leveraged public funds, private investments and commercial financings in the generation of NMTC investment in support of projects involving:
- Alternative Energy Projects
- College and University Projects
- Healthcare and Hospital Facilities
- Hotel Development
- Manufacturing Facility Developments
- Municipal Facilities
- Office Building Developments
- Rehabilitation and Revitalization Projects
- Retail Developments
- Technology Centers
- Waterfront and Pier Development
Government Entity Representative Experience:
New Jersey Community Development Entity, LLC (NJCDE). The NJCDE, organized under the auspices of the New Jersey Economic Development Authority (NJEDA), was awarded a $125 million NMTC allocation in the program’s second round. Since that award, Harris Beach attorneys have worked with NJCDE in developing and designing all aspects of its NMTC program. This has included QLICI product design; negotiation, structure and terms of QEI commitments with third-party investors, including leveraged transactions using a variety of other funding sources; and the coupling of NMTCs with other tax benefits, such as the rehabilitation credit. We have also conducted training programs for NJEDA staff in NMTC transactional and compliance matters; provided counsel on the NMTC program application process to be used by the QALICB-public, and designed QLICI transactional documents to satisfy the strict NMTC program requirements, including the “reasonable expectations” test of QALICB status.
New Jersey Redevelopment Authority (NJRA). The New Jersey Redevelopment Authority (NJRA) invests financial and technical resources into redevelopment projects and plans that will create a positive impact in eligible New Jersey communities. NJRA functions as a comprehensive resource center that focuses on improving New Jersey’s urban communities. Its primary goal is to ensure that projects are urban-focused, neighborhood-based and investment driven. NJRA was awarded a $20 million NMTC allocation in 2014 and selected Harris Beach as its NMTC counsel. Harris Beach attorneys have worked with NJRA in implementing its NMTC program. This has included CDE structure; negotiation, structure and terms of QEI commitments with third-party investors; and the coupling of NMTCs with other tax benefits; staff training; counsel on the NMTC program application process.
Portsmouth Redevelopment and Housing Authority (PRHA). Southside Development Enterprises, under the sponsorship of the PRHA, was awarded a total of $31 million in NMTCs in the program’s second and sixth rounds. Our attorneys handled all aspects of PRHA’s NMTC program, including program design and implementation, its application process, participating in underwriting, negotiating and structuring every deal they have accomplished, managing all aspects of its CDE compliance and reporting requirements, and conducting training programs for PRHA staff in NMTC transactional and compliance matters.
Elizabeth Development Company (EDC). The EDC, the City of Elizabeth, New Jersey’s economic development office, was awarded a total of $35 million in NMTC allocations in the program’s fourth and fifth rounds. As with PRHA, our attorneys coordinated all aspects of the NMTC program, including program design and implementation, its application process, participating in underwriting, negotiating and structuring every deal they have accomplished, managing all aspects of its CDE compliance and reporting requirements, and conducting training programs for staff in NMTC transactional and compliance matters.
Empire State New Market Corporation (ESNMC). Harris Beach worked as special counsel to Empire State Development Corporation in connection with a pending Round III NMTC Allocation Application. The firm played a central role in forming the ESNMC and securing CDE status in advance of ESNMC’s application for NMTC allocation in the program’s second round. This special counsel representation also entailed the development of ESNMC’s proposed NMTC QLICI funding and deployment structure.
The Port Authority of New York & New Jersey. Our attorneys formed and certified the Authority’s CDE and represented the Authority in its allocation application process, including its NMTC program design. We provided advice on projects that the Authority considered undertaking which incorporate NMTCs as part of the project’s overall financing.
Palm Beach County Economic Development Office (PBC-EDO). Our attorneys advised PBC-EDO on the process, utility and benefits of becoming a CDE. On its behalf, we formed and certified PBC-EDO’s CDE and provided representation in its allocation application process, including its NMTC program design. We provide advice and counsel on potential projects that PBC-EDO’s CDE considers undertaking which incorporate NMTCs as part of the project’s overall financing.
Private Entity Representative Experience:
Metropolitan Community Development Entity (MCDE). The MCDE is an entity comprised of the New York Business Development Corporation (NYBDC) and CenterState Corporation for Economic Opportunity in Syracuse, New York. Our attorneys formed the entity’s CDE and subsidiaries, achieved CDE certification, filed allocation applications, designed its NMTC program, assisted in coordinating projects utilizing the NMTC through deal structure, and participated in allocate identification, credit investment negotiation and leveraged debt negotiation.
Reading’s Future, LLC. Reading’s Future, a CDE sponsored by Boscov’s Department Stores LLC, was awarded a $15 million NMTC allocation in the program’s seventh round. Harris Beach attorneys handled all aspects of Reading’s NMTC program, including program design and implementation, its application process, participating in underwriting, negotiating and structuring every deal it has accomplished, managing all aspects of its CDE compliance and reporting requirements, and conducting training programs for staff in NMTC transactional and compliance matters. We closed an initial QEI transaction and a subsequent QLICI for this Pennsylvania CDE.
General Private Entity Experience. Harris Beach has represented regional bank credit investors in NMTC deals and numbers of QALICBs in a variety of project types, including manufacturing, cultural/theatre projects, broadcasting, office building development, college and university clients, and community-based projects. We typically have a broad range of QALICB-level deal pipeline of projects seeking NMTC financing. For these QALICB clients, we structure their deals in compliance with NMTC requirements and assist in attracting allocation, leveraged debt financing and credit investors, as well as negotiating and closing transactions. Our attorneys work on projects involving industrial development agencies and the applications of various federal, state and local tax incentives which further leverage NMTCs, including taxable and tax-exempt bond financings, Payment-in-Lieu-of- Tax (PILOT) Increment Financings and Tax Increment Financings. This includes such projects as a $70 million NMTC transaction we handled for a plant expansion that quadrupled our client’s production capability.