Case Study

NMTC Case Study for The Franklin School

November 2, 2020

Project

The Franklin School is the first major development of the Northside Initiative, a comprehensive effort led by Northside Development Group (NDG), to transform a 400-acre, once blighted and forgotten neighborhood just outside downtown Spartanburg, SC. The Initiative represents an unprecedented collaboration of public, private, civic, educational, and philanthropic institutions in Spartanburg, led by NDG – a Network Member of Purpose Built Communities, a national program designed to break inter-generational poverty through holistic community revitalization.
 
Located in an Appalachian Regional Commission Distressed Area with 49.5% Poverty and 32.1% Median Family Income ($21,742), The Franklin School believes the enrollment of the learning center should reflect the diversity of the community and has committed to ensure that at least 60% of the children enrolled, ages 6 weeks through 5 years, will be from low-income families who will receive tuition support from SC’s child care voucher program, Early Head Start, Head Start, and SC’s CDEP 4K program. In addition, enrollment priority will be given to Northside residents and children zoned for Cleveland Academy, the local Elementary school, of which 100% of students are eligible for the National School Lunch Program. The school also serves as an early childhood lab school, where students from USC Upstate’s Child Development and Family Studies program have an onsite classroom and can observe best teaching practices in preparation to become early childhood educators themselves.
 
The Franklin School will catalyze nearly $50 million of additional follow-on private sector investments to create a community center, 90-units of mixed-income housing and additional health care services in the neighborhood.

The Financing

The $10.3 million project was financed utilizing a $10 million New Markets Tax Credit Allocation provided The Innovate Fund, LLC to leverage $7.6 million in private philanthropy raised by NDG from a variety of community partners, with NMTC equity from Chase Community Equity, LLC.

TOTAL PROJECT COST:

$10,269,999

 

NMTC ALLOCATION:

$10,000,000

 

FINANCING COMPLETE:

August 2018

 

PROJECT SPONSOR:

Northside Development Group

 

CDE:

The Innovate Fund, LLC

 

NMTC INVESTOR:

Chase Community Equity, LLC

 

LEVERAGED LENDER:

Northside Development Group

 

ADDRESS:

100 Franklin Street
Spartanburg, SC

 

CENSUS TRACT:

45083020400

 

COMMUNITY OUTCOMES:

175 Childcare Seats
28,000 SF Education
85% Below-Market Reduced
Rent

 

LOW-INCOME COMMUNITY:

Poverty Rate: 49.50%
Median Family Income: 32.11%
Unemployment Rate: 26.10%
Unemployment Ratio: 3.30x
Appalachian Regional
Commission Distressed Area
FEMA Disaster Area
State/Local Economic Zone

 

Learn More about The Franklin School Case Study