Case Studies


City of Millville – Levoy Historic Theatre

McManimon, Scotland & Baumann, LLC represented the City of Millville, New Jersey, in connection with a redevelopment project to refurbish and restore a historic theater in the City. The City leveraged Urban Enterprise Zone and other redevelopment grants and funds into the project, resulting in a $6,810,301 loan to the borrower. The financing included a combination of loans, grants, equity and conventional bank financing from various sources. For more information on this project, please contact Glenn Scotland, Member.

City of Vineland – Landis Marketplace

McManimon, Scotland & Baumann, LLC attorneys worked with a qualified low income community business (QALICB) in connection with financing the renovation of an approximately 40,000 square foot building into a fresh food marketplace in the City of Vineland, NJ, utilizing NMTC. The financing included a combination of grants, loans and equity from various parties aggregating $5,600,000, including Urban Enterprise Zone funds. The NMTC investor played two roles: providing the equity investment and becoming a member of the QALICB, through an affiliate. For more information on this project, please contact Glenn Scotland, Member.

Elizabeth Parking Authority – Elizabethtown Plaza Parking Garage

McManimon, Scotland & Baumann, LLC, represented the Elizabeth Parking Authority and a newly formed 501(c)(3) non-profit corporation formed on behalf of the Parking Authority to complete a highly complex NMTC transaction involving a host of public stakeholders and their respective professionals, to finance the design, development, construction, operation and maintenance of an approximately 1,500-space, multi-level parking garage and related facility in the City of Elizabeth. This transaction involved multiple revenue sources, including public debt issued by the County of Union and Union County College, and an $11,875,000 NMTC loan. In addition to the NMTC financing, the firm completed in June 2010 the remainder of the $35,000,000 project financing using Recovery Zone Economic Development Bonds authorized by the American Recovery and Reinvestment Act of 2009. For more information on this project, please contact Glenn Scotland, Member.

Essex County Improvement Authority – Heritage House Apartments

In December 2010, McManimon, Scotland & Baumann, LLC represented the Essex County Improvement Authority in connection with a financing to benefit the Heritage House Apartments project. The financing involved the Authority’s issuance of $11,300,000 variable rate tax-exempt bonds secured by a Freddie Mac Letter of Credit. The bond proceeds, along with equity from the project sponsor and tax credit equity investment from the syndication of approximately $4,500,000 in low-income housing tax credits, were used to finance the acquisition, rehabilitation and repair of a 205-unit senior citizen housing project known as the Heritage House Apartments located in the City of East Orange, New Jersey. The Heritage House Apartments provide affordable housing for elderly and disabled residents of Essex County whose income is at or below 60% of the Essex County median income.

City of Newark – Teachers Village

MSB represented RBH Group, and its affiliates, in the third and final phase of the multifaceted and complex financing of the Teachers Village Project at Four Corners in the City of Newark, New Jersey (the “Project”), which was awarded the New Jersey Future’s 2013 Smart Growth Award.

The Project is a mixed-use development consisting of the construction of eight separate buildings and shared parking lot areas to provide 205 units of residential workforce housing, three charter schools, one pre-school/day care (together serving approximately 950 students), and approximately 63,000 square feet of rentable retail space, as part of the redevelopment of downtown Newark. MSB was central to structuring the financing of the Teachers Village Project, which financing consisted of New Markets Tax Credit leveraging public financing including Qualified School Construction Bonds, Redevelopment Area Bonds, and Urban Transit Hub Tax Credits. MSB was able to assist the developer in taking advantage of the various financial tools available to public and private entities in redevelopment areas due to the firm’s extensive background in public finance and tax. Additionally, we assisted the developer in various real estate and land use aspects of the Project, including transfers, easements, consolidating the properties, perfecting various subdivisions, and in this final phase, creating a condominium form of ownership. MSB also formed all special purpose entities required by the various lenders as well as assisted the developer in monetizing its Urban Transit Hub Tax Credits, the first securitized Urban Transit Hub Tax Credit deal in the State of New Jersey.

For more information on this project, please contact Glenn Scotland, Member, at (973) 622-1800.

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.

City of Newark – Makers Village Project

McManimon, Scotland & Baumann, LLC represented developer RBH Group, and its affiliates, in financing the first two phases of the Makers Village Project in Newark, NJ. The project finances the global headquarters and growing space for Aerofarms, an environmentally responsible vertical farming company.  The facility will be the world’s largest indoor vertical farm based on annual growing capacity. The two completed financings financed the acquisition of equipment, substantial rehabilitation, fit-out and unique improvements to the industrial facility to house Aerofarm’s operating business.

Both financing phases utilized New Markets Tax Credits (“NMTC”), with large financial institutions providing both leverage lending and equity. Phase II included closing simultaneously on an equipment NMTC loan and a real estate NMTC loan to separate QALICB entities.  Other subsidies for the project include tax credits under the Economic Redevelopment and Growth Grants Program and the Grown New Jersey Assistance Program.

For more information on this project, please contact Leah Sandbank, Member, at (973) 622-1800.

 

Village of Ridgefield Park – SkyMark Development Project

A $1 billion town center planned for Ridgefield Park could break ground by spring 2018.  The project, which has been designed as a large, multi-use, phased development encompassing more than 53 acres of retail and residential, includes a town center, a luxury high-rise and a hotel/conference center, as well as a 10-acre bald eagle habitat.  The SkyMark Development Project, which has been moving forward since 2000, sits at the crossroads of the New Jersey Turnpike, Routes 46 and 80 and Overpeck Creek.  It will consist of more than 1,500 residential units and 212,000+ square feet of retail space, and will be the largest mixed-use development in Bergen County in 30 years.  Construction on the first phase of the development, in what is expected to be a multi-phase construction process, is expected to start in late spring.

McManimon, Scotland & Baumann, LLC recently devised a series of real estate closings and related financing to effectuate SkyMark’s acquisition of a 17-acre parcel of land, which completes SkyMark’s parcel assemblage of the six parcels located in Ridgefield Park, scheduled for redevelopment and approved as the location for the project.  These closings and financing build upon the firm’s efforts to obtain certain redevelopment and land use approvals, including a redevelopment agreement and financial agreement (a.k.a. PILOT) with the Village of Ridgefield Park, a 20-year General Development Plan approval, and site plan and related approvals for the major roadway system for the project, including exit/entrance ramps to the New Jersey Turnpike, Route 80, Route 46 and a bridge over Route 46.

For more information on this project, please contact Joseph P. Baumann, Jr., Member, at (973) 622-1800.