LOS ANGELES-Lowe Economic Development Co., an affiliate of Los Angeles-based Lowe Enterprises, has placed $31 million in New Markets Tax Credits (NMTC) for three developments, two of them in San Diego and one in Oregon. The tax credit amounts were $11.25 million for Liberty Station and $13 million for a medical office and primary care facility, both in San Diego; and $6.75 million for Portland Development Commission’s renovation of the former Globe Hotel.
J. Alberto Lemus, senior vice president of Lowe Enterprises, said in an announcement regarding the tax credits: “We reviewed numerous projects and after careful analysis selected these three. They are of the size and scope that will provide much needed services, new construction and permanent jobs, and lasting benefits for these communities.” All of the projects are in qualified communities as identified by the Community Development Financial Institutions Fund, a division of the US Treasury that administers the NMTC program.
LEDC’s $11.25 million in NMTC for Liberty Station will help fund phase two of the redevelopment of the former Naval Training Center in Point Loma into the NTC Promenade, a cultural and arts center that is part of the larger master-planned base redevelopment undertaken by the San Diego Redevelopment Agency. Phase two of the NTC Promenade is a $20 million renovation of seven buildings totaling 75,000 square feet to expand the facilities offering cultural and arts education programs. The NTC Promenade is run by the non-profit NTC Foundation and serves an area designated as a renewal community.
The $13 million will help to fund Sharp San Diego Medical Office, a $40 million development of a 68,350-square foot, three-story medical office and primary care facility in the Bankers Hill neighborhood near Downtown San Diego that is designed to meet LEED Gold standards. Sharp HealthCare is a non-profit, public benefit corporation that provides a regional integrated health care system in the San Diego area. It will develop and own the center, which will offer medical services including primary, specialty and urgent care to this low-income community.
The $6.75 million to the Portland Development Commission will help to fund the commission’s $16.0 million renovation of the former Globe Hotel into a new home for the Oregon College of Oriental Medicine. The new facility, at 75 NW Couch St. in the Old Town/Chinatown district, allows the College to expand its affordable health care to a larger and underserved population, while helping to revitalize part of the downtown core.
Said Tom Wulf, a senior vice president at Lowe: “All three projects meet our criteria to assist in the transformation of emerging communities. Our participation with the provision of the NMTC was an important element of the complex financing required to make these public/private and non-profit developments a reality.”
Lowe Economic Development Co. was awarded $45 million in NMTC from the US Department of the Treasury in November 2009, one of only five applicants in Los Angeles to be awarded in that round of allocations. It was the first NMTC allocation for LEDC, a for-profit investment and development group formed in 2007 to support redevelopment in low-income and distressed communities.
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