City of Newark – The Friends of TEAM Academy Charter School – 18th Avenue School
In September 2014, the firm represented The Friends of TEAM Academy Charter School and its affiliates in a twinned New Markets Tax Credits/Historic Tax Credit transaction to finance the historic rehabilitation of a school facility located at 229 18th Avenue in Newark. With the same financial institution acting as tax credit investor for both the New Markets Tax Credits and the Historic Tax Credits, and utilizing federally subsidized Qualified Zone Academy Bond and Qualified School Construction Bond funds as well as equity to fund project costs, the financing generated approximately $6.5 million in tax credit equity for a $36 million project budget.
This transaction involved compliance with multiple federal programs, including a new IRS revenue procedure, affiliate entities acting as direct lender and leverage lender, tax-exempt entity and related party considerations, the establishment of multiple entities to act as direct lender, member managers, project owner and master tenant and complex structuring requirements.
McManimon, Scotland & Baumann has extensive experience working with federal tax incentive programs such as New Markets Tax Credits, Historic Tax Credits and qualified bonds, as well as with financing for charter schools and 501(c)(3)s.
For more information on this project, please contact Leah Sandbank, Member, at (973) 622-1800.
This image is credited to KSS Architects.