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New Market Tax Credit Municipal Library Project
$800K Net NMTC Benefit Achieved
- $5.25M New Public Library
- Public Private Partnership Structure
- Severely Distressed Non-Metro (rural) LIC – 21.2% Poverty Rate
HWH Group successfully secured $5.25 in New Market Tax Credit (NMTC) financing and allocation for the City of Poteau, Oklahoma. The transaction, which was sponsored by the City and several nonprofit organizations, was structured with a public private partnership to fund the City’s new state of the art library. The project is located in a distressed rural location with a poverty rate of 21.2%. The transaction utilized a variety of funding sources including donations, 3rd party debt and loans from the City. HWH Group served as the sole transaction manager for the group and successfully negotiated, structured and closed the transaction in June of 2011. The fulfillment job yielded approximately $800,000 of net NMTC funding and benefits for the public private partnership group.
The new 24,000 square foot library replaces the city’s existing library, which was not equipped with the necessary technology and resources to serve the needs of the community. When complete, the building will feature a new multimedia room to serve community meetings and training events and 30 new laptops which will supplement the community’s GED and workforce training needs as well as a new summer reading program. The NMTC funding allowed a project that had been stalled for 10 years and was desperately needed, to finally become a reality for the community.