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Thanks to CSDC support and a lending strategy based on New Market Tax Credits - or NMTC's - KIPP Tech Valley is now the primary tenant of a newly built, two-story, 30,685 sq. ft. facility, sited on 4.8 acres in Albany's Arbor Hill community. Tech Valley serves 80 5th graders and plans to add grades 6,7, and 8 by the 2008-2009 school year. Its co-tenant is Achievement, which also serves 80 5th graders and also will add grades 6-8 before it relocates (in the 2007-2008 school year) to a facility developed, financed and leased by the Brighter Choice Foundation, which supports charter schools in Albany.
How the Funding Came Together
The Educational Facilities Financing Center of the Local Initiatives Support Corporation (LISC) partnered with NCB Development Corporation on a New Markets Tax Credit financing plan for KIPP Tech Valley, with NCB furnishing $6.9 million in tax credits, U.S. Bank providing $2.1 million in equity, and LISC and NCB serving as leveraged lenders with loans of $2.4 million each.
CSDC provided the necessary payment guaranty of $449,000 or the equivalent of 12 months of debt service payments. |
