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Construction begins on Pascua Yaqui Education Center, thanks in part to New Markets Tax Credits
Pascua Yaqui Tribe, Wells Fargo and Travois work together on transaction
“Education is very important to our tribe. Being able to build an education center is exciting and long overdue,” said Francisco Valencia, tribal council secretary. “As a tribal council member, it’s important to look for ways to help grow and build our tribe. Because of NMTCs, we have been able to allocate our savings of over $2 million on this project toward other services or programs the tribe needs. With all of our success utilizing NMTCs, we hope to use them again in future projects.”
The tribe saw a great need for a state-of-the-
“Wells Fargo is proud to be part of the Pascua Yaqui Education Center which will undoubtedly deliver positive community impacts to this Native American community,” said Tracy Ericson of Wells Fargo Community, Lending and Investment.
Travois New Markets connected the tribe to Wells Fargo’s allocation and facilitated the closing of the NMTC transaction, and Travois Environmental Services conducted the required Phase I Environmental Site Assessment and an American Land Title Association (ALTA) survey to help the project get under construction.
“The Pascua Yaqui Education Center creates jobs and is a great example of why the New Markets Tax Credit program should be extended,” said Phil Glynn, Travois vice president of economic development. “New construction and permanent jobs will result from the development and opening from the center. Perhaps more importantly, the educational opportunities the center provides will help generations of Tribal members fill and create the new jobs of the 21st century.”
The project is expected to create 40 construction jobs and retain 60 permanent jobs. It will open and begin serving tribal members in early 2013.
About the NMTC program
The NMTC program was created in December 2000 and is administered through the Community Development Financial Institutions Fund (CDFI Fund) by the U.S. Department of the Treasury. The NMTC program serves as a catalyst to encourage investment of private equity capital into low income communities and allows taxpayers, such as Wells Fargo, to receive a credit against federal income taxes for making equity investments in designated CDEs. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year credit allowance period. The CDE provides a qualified equity investment under favorable terms, such as a below-market interest rate and a longer-than-
About Wells Fargo
Wells Fargo & Company is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com)
Wells Fargo provides nationwide commercial real estate banking, capital markets, and advisory services in a single platform that includes lending, syndications, debt placement, equity raising and underwriting, mergers and acquisitions and servicing. Wells Fargo was ranked as the nation’s largest commercial real estate lender and servicer and top multifamily lender by the Mortgage Bankers Association for 2010; was named the largest issuer of preferred stock REIT equity and the largest domestic REIT and real estate bookrunner by Thompson Financial in 2010; and was named the most active brokerage of large commercial real estate sales in 2010 by Real Estate Alert. For more about the Wells Fargo commercial real estate platform visit: www.wellsfargo.com/
Travois New Markets, a nationally certified Community Development Entity (CDE), is dedicated exclusively to meeting the economic development needs of American Indians, Alaska Natives and Native Hawaiians in low income communities. Travois New Markets has invested a total of $110 million in New Markets Tax Credit allocation that it was awarded from the Community Development Financial Institutions Fund of the U.S. Department of the Treasury. The Travois family of companies raises capital for housing and economic development in Indian Country and provides educational, environmental, architectural, engineering and asset management services.
The 12th Annual Travois Indian Country Tax Credit Conference, created to provide information about Low Income Housing Tax Credits and New Markets Tax Credits, will be held Sept. 10-13, 2012, at Pascua Yaqui’s Casino del Sol in Tucson, Ariz. For more information about Travois, please visit www.travois.com.