REAL ESTATE FINANCING
- Project Sponsor: DEW Properties, LLC
- Investment: $8.5 million
- Location: Rutland
- New construction, downtown academic facility
Vermont Rural Ventures provided a portion of its federal New Markets Tax Credit allocation as a key piece of financing for a new 32,000 square foot academic building in downtown Rutland which is leased to the Community College of Vermont. The project required the demolition of several buildings, some of which were abandoned and in disrepair, and the cleanup of a state high-priority, contaminated Brownfield site on a key corner of downtown Rutland.
Gap and Investment
The new Community College $8.5 million facility appraised at $6.9 million. Its low value limited traditional financing and despite the use of Recovery Zone Facility Bonds, a Vermont Economic Development Authority loan, and sponsor equity, the development budget was left with a significant gap. Vermont Rural Ventures filled this gap with an investment of just over $2 million from New Markets Tax Credit equity.
Community College of Vermont programs are critical to the residents of Rutland Vermont, a rural, distressed community with high poverty and unemployment rates, and median incomes below the statewide median. Construction of the West and Wales facility enabled the Rutland site, the fastest growing Vermont Community College site, to better serve the community with increased classroom space. Over 1,000 students a week pass through the doors of CCV.
For the community of Rutland, this investment allowed the College to remain downtown, remediated a contaminated site, and brings employees, faculty and students as potential customers to downtown retailers – transforming a major city gateway from an eye sore to a thriving downtown business district.
Vermont Rural Ventures: Nancy Owens and Glenn Von Bernewitz
Developer: DEW Properties, LLC
Legal: Husch Blackwell LLP, Gallagher, Callahan & Gartrell, P.C., Nolan Sheehan Patten LLP, Edwards Angell Palmer & Dodge, Gravel and Shea.
Architect: Banwell Architects
Contractor: DEW Construction Corporation
US Bancorp Community Development Corporation
Mascoma Savings Bank
Vermont Economic Development Authority