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AltCap, in partnership with Central Bank CDE, Enterprise Financial CDE, Port KC and US Bank/USBCDC, provided $34.5 million in NMTC facilitated structured financing to Sioux Chief Manufacturing for a new 596,000-square-foot plant to be located at the CenterPoint Intermodal Facility, the industrial park at the former Richards-Gebaur Air Force Base site. The plant, which will be completed in 2016, will accommodate the company's growing business which expects to create about 100-150 jobs over the next 3-5 years.
"AltCap is thrilled to support another family-owned business that is committed to investing and growing in Kansas City," said Ruben Alonso III, President of AltCap. "Sioux Chief's investment at the CenterPoint Intermodal Facility represents a significant economic and job growth opportunity for south Kansas City.”
The NMTC Program was a key part of the structured financing package used to support Sioux Chief’s investment in Kansas City. AltCap, Enterprise Financial CDE and Central Bank CDE contributed a combined $34.5 million in NMTC allocation, with AltCap using $14.5 million of its allocation authority - its largest single allocation commitment to date. The combined NMTC allocation commitment will deliver close to $10 million in financing. US Bancorp Community Development Corporation, an affiliate of US Bank, was the tax credit investor.
Contributing to the NMTC facilitated structured financing, $23.5 million in private-placement bonds were issued by Port KC which owns the 900 acres surrounding the CenterPoint Intermodal Center. Port KC will retain ownership of the ground the new facility sits on as well as the real property. The bond financing was part of an enhanced incentive and financing package that is in part tied to Sioux Chief’s commitment to increase metropolitan employment over the next 20 years. AltCap facilitated a partnership with the Full Employment Council to help ensure that the job creation impacts will accrue to the surrounding communities and residents.
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