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The HWH Group Completes Tax Credit Financing for Sioux Chief Plant in Kansas City

11.23.15

Sioux Chief Manufacturing Company, Inc., a leading plumbing equipment producer based in Peculiar, MO is preparing to build a new 570,000 square foot facility in Kansas City, thanks in part to New Markets Tax Credit (NMTC) financing secured with the assistance of The HWH Group. The project has a total value of approximately $40 million, and will bring nearly 500 jobs to its CenterPoint Intermodal Center, the site of the former Richards-Gebaur Air Force Base. It will serve as Sioux Chief’s new headquarters when it opens in late 2016, and as home for its manufacturing and distribution operations, with room for future expansion.

Port KC will help finance construction through a $23.5 million bond issuance, part of the incentive package tied to Sioux Chief’s commitment to increase metro area employment over the next 20 years. The NMTC program was another key component. AltCap, Enterprise Financial CDE and Central Bank of Kansas City contributed a combined $34.5 million in NMTC allocation, delivering close to $10 million in facilitated financing. US Bancorp Community Development Corporation, an affiliate of US Bank, was the tax credit investor. The HWH Group served as NMTC consultant to Sioux Chief.

Founded in 1957 by Martin “Ed” Ismert, Jr., Sioux Chief is a family-owned manufacturer of innovative, residential and commercial rough plumbing products (behind the wall and under the floor) with sales worldwide. “We began in 1963, with two employees in the West Bottoms of Kansas City, Kansas, manufacturing a single product by cutting and spinning copper tube and selling it into Kansas City, Chicago and Los Angeles. Today, we employ more than 450 people and manufacture nearly 4,000 different products, with copper fabrications still a large part of our product offering; but now also operating one of the largest plastic injection molding plants in the Midwest and with our newest expertise being extruded cross-linked tubing. Our customers include more than 5,000 plumbing wholesalers and major retailers in the U.S. and Canada. Everything is made in our single factory just south of Peculiar, Missouri”, said Joe Ismert, CEO. “This move to CenterPoint will allow us the space and efficiencies to continue our dynamic growth for many years to come.”

The HWH Group, based in Paris, Texas, is the site selection and incentives unit of Harrison, Walker & Harper. Its staff members serve as growth consultants for national clients seeking to expand their businesses or institutions. They are sought-after experts in facilitating New Markets Tax Credits and other programs that advance economic and community development.

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