Case Study

NMTC Case Study for SWIN YMCA

November 3, 2020

Project

Thanks to a financing tool designed to attract private investments to Low-Income Communities, the YMCA of Southwestern Indiana is building a new 80,600 square foot health and wellness center in downtown Evansville, Indiana.
 
The area of development is in a federally-designated Promise Zone where 37.5% of the population live below the poverty level. With a total capacity of nearly 35,000 clients annually, the new St. Vincent Evansville YMCA will include a pool, multiple gyms, wellness area, group exercise rooms, STEM Lab, a teaching kitchen, expanded child watch and youth activity areas and an enrichment center. The YMCA will also lease approximately 10,000 sq. ft. to St. Vincent Evansville to provide primary health care and physical therapy services in this Federal Medically Underserved Area.
 
“For years we have operated in a facility that combines three aging buildings that were built for three different purposes. These buildings have served us well, but now is the time to invest in creating a facility that is better able to meet the needs of our community,” said Derrick Stewart, CEO of the YMCA of Southwestern Indiana. “By utilizing New Markets Tax Credits, not only will we be able to better serve our current and future members, but in coordination with Cinnaire, we will be able to provide more critical services to the low-income residents of downtown Evansville.”

The Financing

Total project costs for the YMCA/Medical Facility were just over $18 million. In addition to a capital campaign, the project was able to secure a grant from Indiana’s Regional Cities program, permanent debt financing from Old National Bank, $9 million of New Market Tax Credit Allocation from Cinnaire, and tax credit investment from PNC New Markets Investment Partners to complete the project.

TOTAL PROJECT COST:

$18,100,000

 

NMTC ALLOCATION:

$9,000,000

 

FINANCING COMPLETE:

September 2018

 

PROJECT SPONSOR:

YMCA of Southwestern Indiana

 

CDES:

Cinnaire

 

NMTC INVESTOR:

PNC Bank

 

LEVERAGED LENDER:

YMCA of Southwestern Indiana

 

ADDRESS:

311 NW 5th Street
Evansville, IN

 

CENSUS TRACT:

18163001800

 

COMMUNITY OUTCOMES:

80,600 SF
129 Direct Jobs
Capacity: 34,591

 

LOW-INCOME COMMUNITY:

Poverty Rate: 37.51%
Unemployment Rate: 12.3%
Unemployment Ratio: 1.48x
Federal Promise Zone
Federal MUA

 

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