Case Study

NMTC Case Study for Boys & Girls Club of Cabarrus County

February 26, 2021

Project

Throughout the seventy-year history of the Boys & Girls Club of Cabarrus County, they have expanded services and facilities to meet the needs of children in the County. In 2018, they found themselves at capacity, turning away hundreds of children annually from valuable services, and empowerment—an unacceptable position for the staff and Board.

They embarked on an aggressive $7.5 million capital campaign to expand their facility by 29,112 SF to provide:

  • A new teen center for high school students and expanded space for middle school youth
  • A performing arts room and stage that opens into a new multi-purpose area
  • Seven additional activity rooms – doubling academics and youth development programming
  • A cafeteria to expand food service and provide a hot meal year-round for all members in this USDA Food Desert

With the new space, the Club will be able to provide services to 750 members daily and over 2,200 annually, almost doubling their capacity. They will also be able to expand their network of Title I Schools they support from 17 currently to all 22 in Cabarrus County. All, in a low-income community that has a poverty rate of 34.90%, median family income of only 51.56% and unemployment of 16.10%.

Importantly, the new facility will allow the B&G Club to expand their elementary 21st Century Community Learning Center Program into middle school as well. The 21st Century Community Learning Center Program is administered through the North Carolina Department of Public Instruction and provides federal funding for organizations like B&G Clubs to better serve the children, families and schools in their community.

The Financing

The approximately $10.3 million dollar project was financed utilizing a bridge loan from Reinvestment Fund to advance proceeds of their $7.5 million capital campaign through a self-leveraged structure, NMTC equity from Wells Fargo, and $9.5 million of New Markets Tax Credit Allocation provided by CAHEC New Markets, LLC.

TOTAL PROJECT COST:

$10,338,000

 

NMTC ALLOCATION:

$9,500,000

 

FINANCING COMPLETE:

December 2019

 

PROJECT SPONSOR:

Boys & Girls Club of Cabarrus County

 

CDES:

CAHEC New Markets, LLC

 

NMTC INVESTOR:

Wells Fargo

 

LEVERAGED LENDER:

Boys and Girls Club of Cabarrus County

 

ADDRESS:

247 Spring Street NW
Concord, NC 28026

 

CENSUS TRACT:

37025041902

 

COMMUNITY OUTCOMES:

118 Direct Jobs
750 LIC students served daily
5,000+ LIC students served annually

 

LOW-INCOME COMMUNITY:

Poverty Rate: 34.90%
Median Family Income: 51.56%
Unemployment Rate: 16.10%
Unemployment Ratio: 1.94x
USDA Food Desert

 

NMTC Case Study for Boys & Girls Club of Cabarrus County