Case Study

NMTC Case Study for Gregg Community Center

February 9, 2021

The Project

The project is the construction of the 46,810 square foot community facility, by the City of Spartanburg in the Northside neighborhood, to include a gym, running/walking track, exercise/fitness rooms, community and classroom space, and importantly, two pools which the Northside residents fought to be indoor vs. outdoor. In addition to $10 million of Allocation provided by The Innovate Fund, project financing includes $5 million of additional NMTC Allocation from South Carolina Community Loan Fund.

The investment is part of the Northside Initiative, a comprehensive effort to fundamentally transform a 400-acre, once blighted and forgotten neighborhood into a community of choice. It is a direct result of the $350 million Spartanburg Choice Neighborhood Master Plan that identified the investment as a transformative project. The planning process began with a series of resident meetings, and expanded to broader 3-day community charrettes, involving 300 LIC residents. The Northside Initiative represents an unprecedented collaboration of public, private, civic, educational, and philanthropic institutions in Spartanburg, led by the Northside Development Group, a network member of Purpose-Built Communities, a national initiative designed to break inter-generational poverty through holistic community revitalization driven by a single purpose non-profit community quarterback. In 2018, the U.S. Department of Housing and Urban Development and the Council on Foundations awarded the Northside Initiative the Secretary’s Award for Public-Philanthropic Partnerships.

Community Outcomes

Located in an Appalachian Regional Commission (“ARC”) Distressed Area with Poverty of 45.3% and Median Family Income of 45.14%, the project is expected to provide educational services, people services (such as life skills, substance support groups, homebuyer education, and financial literacy), and health and wellness programs to an estimated 3,500 Northside residents annually. Adult continuing education, District 7 Virtual School and Workforce Development programming will assist LIC residents in finding quality jobs in an area with 22.8% unemployment.

 

TOTAL PROJECT COST:

$18,162,606

 

NMTC ALLOCATION:

$15,000,000

 

FINANCING COMPLETE:

October 2019

 

PROJECT SPONSOR:

City of Spartanburg

 

CDEs:

The Innovate Fund
South Carolina Community Loan Fund

 

NMTC INVESTOR:

Capital One

 

LEVERAGED LENDER:

City of Spartanburg Development Corporation

 

ADDRESS:

650 Howard Street,
Spartanburg, SC

 

CENSUS TRACT:

45083020400

 

COMMUNITY OUTCOMES:

46,810 SF
3,500 Capacity

 

LOW-INCOME COMMUNITY:

Poverty Rate: 45.3%
Median Family Income: 45.14%
Unemployment Rate: 22.8%
Unemployment Ratio: 2.75x
ARC Distressed Area
Federal Medically Underserved Area Federal/State/Local Zone

 

NMTC Case Study for Gregg Community Center