December 20, 2017
Henry County, VA – Henry County, in partnership with the Martinsville-Henry County Economic Development Corporation (EDC) recently closed $13 million in funding to break ground on a new advanced manufacturing training facility in the Commonwealth Crossing Business Centre (CCBC) thanks to a New Markets Tax Credit (NMTC) transaction completed on December 8. Through the NMTC, a $5 million grant from the Harvest Foundation, as well as funding from the Tobacco Commission and the Virginia Economic Development Partnership, were leveraged to generate an additional $2.71 million to help construct the Commonwealth Centre for Advanced Training (CCAT), and to complete critical infrastructure, including a water tank and sewer lift station for the CCBC.
“Without both the Harvest Foundation Grant and the ability to leverage available funds through the use of the NMTC Program, CCBC would have remained only a business center promising to support new companies once they complete site selection,” said EDC director Mark Heath. “CCAT demonstrates our commitment to those companies and to developing our workforce to meet their specific needs.”
People Incorporated Financial Services, a Community Development Financial Institution located in Abingdon, VA, provided $10 million of NMTC allocation to the project. SunTrust Community Capital, LLC (STCC) provided an additional $3 million of allocation and served as the tax credit investor on the transaction. Advisory services were provided to the EDC and Henry County by Tax Advantage Group from Greenville, SC, and the law firm of Gentry Locke out of Roanoke, VA.
The CCAT project will enhance the marketability of the CCBC to advanced manufacturers, and provide new and innovative training to a workforce eager to join the future of manufacturing. Rob Goldsmith, president and CEO of People Incorporated, described their reasons for participating in the transaction: “We are excited to participate in financing a project that not only will help attract new business to this community, but provide important workforce training at no cost to local community residents.” His sentiments were echoed by Chris Sears, senior vice president of STCC, “Our purpose is to light the way to financial well-being, and this project will do that for the people and businesses who call Henry County ‘home.’ We are excited to be part of a new chapter in an area so steeped in manufacturing tradition, and SunTrust Community Capital is pleased to help bring it to fruition.”
CCAT will provide modern, high-tech training and office space for companies locating in CCBC during the company’s construction phase. Through curriculum established by Patrick Henry Community College, the companies will have a seamless path from training to employment without leaving the Centre. These improved efficiencies will reduce the time to profitability. For companies investing hundreds of millions of dollars on plant and equipment, a training facility like CCAT is especially meaningful during the site selection process, as it sets Martinsville-Henry County apart from the competition.
“We think the CCAT project is a game-changer for the Martinsville-Henry County area,” said Tim Hall, Henry County administrator. “Working with our team and using the New Markets process to enhance the final product makes us even more competitive.”
About Henry County
Set in the foothills of Virginia's beautiful Blue Ridge Mountains, Henry County is home to major industries, NASCAR Cup Racing, and an unsurpassed quality of life.
About the Martinsville-Henry County Economic Development Corporation
The mission of the Martinsville-Henry County Economic Development Corporation is to create new job opportunities and expand the tax base for the area. The organization strives to support and develop local industry, as well as market Martinsville-Henry County globally as an exceptional place to live, work and play.
About People Incorporated
People Incorporated is a non-profit Community Action Agency and Community Development Corporation committed to providing opportunities for economically disadvantaged people to reach their goals in order to enhance their lives, families, and communities. People Incorporated develops programs and strategies that are designed to move people and communities into the economic mainstream. In Fiscal Year 2017, People Incorporated provided services to over 6,000 clients throughout Virginia. For more information about People Incorporated’s programs and services visit us at www.peopleinc.net.
About SunTrust Banks, Inc.
SunTrust Banks, Inc. is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. Headquartered in Atlanta, SunTrust operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states, along with 24-hour digital access. Certain business lines serve consumer, commercial, corporate, and institutional clients nationally. As of September 30, 2017, SunTrust had total assets of $208 billion and total deposits of $163 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. Join the movement at onUp.com.
About Tax Advantage Group, LLC
Headquartered in Greenville, S.C., taxadvantagegroup (tag) is one of the country's most successful consulting firms specializing in New Markets Tax Credits, helping nonprofit and for profit organizations access capital and transform communities. Since 2004, tag has played an instrumental role in securing funding for over $1 billion for community projects across the United States. In addition, tag provides compliance and asset management services on $305 million of NMTC assets. The depth and breadth of services provided by tag is unsurpassed in the industry and includes New Markets Tax Credit Allocation Applications; NMTC Deployment; CDE Compliance and Asset Management; and Outreach Strategy Development. Each of these services helps tag achieve its mission of revitalizing low-income communities by providing capital and project management to organizations that create significant community impact.
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