The PPRF funded over $34 million dollars for the land and construction of an Administrative Complex for Taos County. The Complex consolidated the County’s administration, courthouse and detention center.
Photo Credit: Credit Robb Williamson
Mesa Del Sol
Albuquerque, NM 87106
Total Project Costs:
Finance New Mexico Allocation: $8,000,000
Leverage Lender: Molina, Inc.
NMTC Investor: Wells Fargo Community Investment Holdings
Closing Date: October 2011
Status: Expansion Complete as of Fall 2011 First Clinic Opened May 2012
Molina Healthcare was founded in 1980 by David Molina, an emergency room physician in Long Beach, California, who had seen patients use the emergency room for a sore throat or the flu. As a result of his emergency room work, Dr. Molina established his first primary care clinic with the goal of serving the most financially vulnerable patients, who get health care paid for by government programs, and to help those who were uninsured or non-English speaking.
For the past 30 years, Molina Heathcare has been providing medical services to some of the nation’s most financially vulnerable populations. And because the Molina receives 100% of its funding from state and local governments, primarily Medicaid, it has been faced with providing care to more individuals while state and federal budgets have cut funding for these services.
Molina determined that diminishing the quality of care it provided was not an option, and instead focused on controlling administrative costs so that the dollars they receive can continue to go to quality care for its patients. As part of this effort, Molina decided to relocate a portion of its data center operations from its company headquarters in Long Beach, California, as the area had been frequented by floods, fires and earthquakes, to Albuquerque, New Mexico, an area known for its sunny weather and low cost of doing business.
The 26,500 square foot center will consolidate the data requirements of the company and its subsidiary medical plans it offers in 16 states, including New Mexico, thereby providing savings to the company that can be channeled into healthcare.
Since coming to New Mexico is 2004, Molina has invested approximately $70 million in its clinics and data center and currently employs approximately 175 New Mexicans. Through this project Molina expects to double the number of patients for whom they provide care.
With the help of New Markets Tax Credits, Memorial Ventures, LLC undertook a comprehensive renovation of the Memorial Hospital Complex, which consists of three historically significant structures totaling 42,500 square feet on a 2.27 acre site, and converted it into a high-quality, limited-service boutique hotel named Hotel Parq Central. In addition to 73 guest rooms, the hotel offers two conference rooms and recreational amenities, including a spa, exercise room and an outdoor whirlpool. The hotel also features The Apothecary, a roof-top lounge with a limited food-service menu, a full bar and breathtaking views.
The Memorial Hospital opened in 1926 as the hospital for the employees of the Atchison Topeka and Santa Fe Railroad. The property consists of three buildings which are listed on the National Register of Historic Places: a three-story main building and two smaller casitas. The hospital was closed in 1982 and has had various health-related tenants since, most recently serving as a 70-bed residential mental health treatment center for adolescents.
The conversion of historic Memorial Hospital into a boutique hotel is anticipated to have a significant positive impact on the community, providing jobs, economic benefits to the immediate area and redeveloping the vacant and functionally obsolete hospital facility. A mix of landmark historic structures, location, interior and exterior appointments, lush xeriscaped gardens available to guests, and quality personalized service will make this historic property a cornerstone of the Huning Highland National Historic Sub-district and the East of Downtown (EDo) organization’s revitalization efforts.
The project provided 200 jobs during construction and at stabilization will employ 34 permanent, competitively paying hospitality jobs.
The transaction utilized $13.846 million from Finance New Mexico NMTC financing which was combined with approximately $2.649 million in Historic Tax Credits and equity to complete the financing. Additionally, the project utilized a $14 million Industrial Revenue Bond issued by the City of Albuquerque, which provides certain tax advantages such as a 20-year abatement of property taxes.
The PPRF funded $20,810,000 to the Pueblo of Isleta for its Tribal Services Complex. The complex consolidated the Pueblo’s Fire Department, Police Department, Appellate Court, Tribal Court, Tribal Administrative Offices and other governmental activities into one location. The Bonds were issued as Build America Bonds (BABS).
8500 Bluewater Road, Northwest
Albuquerque, NM 87113
Finance New Mexico Allocation: $8,000,000
QEI Closing Date: September 2010
QLICI Closing Date: September 2011
Status: Expansion Complete as of Spring 2012
Vitality Works is a New Mexico based-manufacturer of herbal medicinal supplements that has been in business for nearly 30 years. The company enjoys a good reputation for producing supplements with high quality, purity and potency. Vitality Works has sustained growth from 20-40% every year for the past 12 years. While its former 21,000 sq. ft. facility seemed enormous to them seven years ago, the company fully outgrew its location about three years ago when office and manufacturing space became increasingly cramped. With sales exceeding structure and production, there have been numerous challenges maneuvering in the existing limited space. As an interim solution, they began running double shifts and acquired three additional warehouse storage facilities, yet with parking located inconveniently from the workplace. Audits from companies interested in doing business with Vitality Works, Inc. expressed repeatedly that when the company’s capacity could be increased, so would their purchase orders. The CEO was seeking a solution to expand facilities and workforce in order to respond to increased product demand.
Through NMTC financing, Vitality Works was able to accelerate its investment and infrastructure expansion for the production of high-quality medicinal herbs and supplements. With the funding, the company purchased, renovated and equipped the former Honeywell and Sparton Technology plant in Albuquerque. All manufacturing and administrative infrastructure was safely in its new quarters by March 2012.
The benefit provided by NMTC allowed Vitality Works to repurpose a large building, allowing them to bring energy and activity to the community, do business with other local businesses and create jobs. The infusion of cash received went back into the local economy and, importantly, the expansion project made it possible for employees to have a higher quality of work experience in a safer environment near public transportation.