US Bank provides $11.2 million of financing for revitalizing Brooks House in Brattleboro

US Bank is partnering with Massachusetts Housing Investment Corporation and Vermont Rural Ventures to provide $11.2 million in tax credit equity to help a team of civic leaders redevelop the historic Brooks House in Brattleboro, Vermont. Project partners gathered with Governor Peter Shumlin for a groundbreaking ceremony on July 17th at the Robert H Gibson River Garden on Main Street.
‘Brooks House has been a focal point of downtown Brattleboro since it was constructed in 1871,’said Laura Vowell, vice president for U.S. Bancorp Community Development Corporation (USBCDC), the community development subsidiary of US Bank that made the investment. ‘We’re thrilled to support the restoration of the property so that it can once again contribute to the economic health and viability of the area.’
Located at Main and High Streets, the Brooks House has been vacant since early 2011 when a five-alarm fire badly damaged the building.
‘Returning the iconic Brooks House to its original grandeur and updating its amenities has been our main priority since we first approached Jonathan Chase, the building’s previous owner, in 2012,’said Craig Miskovich, one of five area leaders spearheading the redevelopment. The group also includes Bob Stevens, Ben Taggard, Drew Richards and Peter Richards.
Opening in September 2014, the restored building will feature 23 updated mixed-income residential rental apartments, an educational center for the Community College of Vermont and Vermont Technical College, and office space for Oak Meadows, a home schooling and curriculum development organization. The ground floor, 15,000 rental square feet, will again be used for retail and restaurant uses, 30 percent of which has been pre-leased to a new restaurant called Duo, as well as a former tenant, Brilliance, a gift shop and home furnishing store.
‘The Brooks House will bring construction and permanent jobs to Brattleboro and restore and improve a critical downtown block,’said Nancy Owens, president of Housing Vermont. ‘We are proud to be a part of this project and its sponsors, lender and investors,’Owens said.
When the project is completed, the Brooks House is expected to yield more tax revenue than it did prior to the fire.
‘The redevelopment of Brooks House is precisely the kind of project for which the New Markets Tax Credit program was created. It will breathe new life into this part of Brattleboro and in general have a very positive impact on the economic and social well-being of Brattleboro,’said Joe Flatley, president of MHIC.
Additional financial support for the $24 million development comes from Mascoma Savings Bank, the Vermont Economic Development Authority, Brattleboro Development Corporation, the Town of Bratteboro, and Community Development Block Grants, as well as investments from 20 preferred shareholders.
In 2010, U.S. Bank, MHIC and Coastal Enterprises supported the development of Commonwealth Dairy ‘a joint partnership between Ehrmann AG, a German family-run company, and Commonwealth Yogurt ‘on the south side of the city. NMTCs were the lynchpin that made the development possible in Brattleboro. Since opening in 2011, Commonwealth Dairy has exceeded the volume, sales, revenue, and job creation initially anticipated. In 2012, NMTCs from MHIC and VRV financed the dairy’s expansion and supported the purchase of new manufacturing equipment.
About Massachusetts Housing Investment Corporation
MHIC is a private, nonprofit lender and investor specializing in financing affordable housing and community development throughout New England. It was founded in 1990 by a consortium of banks and other corporate investors to fill a critical gap in meeting the credit needs of developers who could not get financing for certain projects from traditional lenders. To date, MHIC has provided more than $1.8 billion in financing. That financing represents the preservation or creation of nearly 16,683 housing units and more than 3.4 million square feet of commercial space. For more information, see www.mhic.com
About Vermont Rural Ventures
Vermont Rural Ventures (VRV), a qualified CDE operated by Housing Vermont, has been awarded $105 million of New Markets Tax Credits since 2008. VRV uses these credits to provide below market financing to qualified developments in Vermont. These resources support investment in the economic, environmental, and social well-being of Vermont communities. Visit VRV at www.hvt.org/vrv/.
About U.S. Bancorp Community Development Corporation
With more than $11.7 billion in managed assets as of June 30, 2013, U.S. Bancorp Community Development Corporation, a subsidiary of U.S. Bank, provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. USBCDC's commitments provide capital investment to areas that need it the most and have contributed to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable and market-rate homes, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities. Visit USBCDC on the web at www.usbank.com/cdc.
About U.S. Bancorp
U.S. Bancorp (NYSE: USB), with $353 billion in assets as of June 30, 2013, is the parent company of U.S. Bank, the 5th largest commercial bank in the United States. Celebrating its 150th anniversary this year, the company operates 3,087 banking offices in 25 states and 5,032 ATM and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.
BRATTLEBORO, Vt. (August 13, 2013) ‘VRV