Renovation of Historic Sears Building in Butte, Montana Wins National Award for its use of New Markets Tax Program

The Historic Sears Building in Uptown Butte recently won a national "Development of Distinction" Award for its innovative financing and excellence in historic restoration of an important community asset.

Residents of Butte are about to experience the reality of a nationally acclaimed historic renovation project in Uptown Butte. The Historic Sears Building received Honorable Mention (second place) for meaningful and distinctive use of federal tax credits for Historic Rehabilitation. The annual award is presented December 3rd in Las Vegas, by the Novogradac Community Development Foundation, a nationally certified accounting and consulting firm that works extensively in the community development field. The project will be featured in a national Tax Credit Journal.

Developer Nick Kujawa, of Kujawa Development LLC, has led the renovation of the Historic Butte Building. As a Butte native, Nick undertook the renovation with a desire to revitalize not just the building itself, but the entire neighborhood. The tax credit financing programs are meant for just such purposes, and the award is recognition of the long term economic impacts and those already surfacing.

The project has produced approximately 80 construction jobs and is projected to create over 45 permanent jobs over the next ten years. The new residential units will provide more customers and commercial vitality for all of the businesses in Uptown Butte, including those now springing up nearby.
Since the closing of financing for the redevelopment of the Historic Sears Building was announced, several nearby businesses have either opened shop or are on track to do so.

A quick-casual restaurant has opened just down the street from the project (Taco del Sol). A hotel
revitalization project across the street is planned (Capri Hotel), which will be complementary to the residential units and grocery store going into the Historic Sears Building. In addition, several private investors have purchased long-vacant apartment buildings in the immediate vicinity with plans to restore them to their former glory (O’Rourke Building; also, the Leonard Hotel). Economic modeling predicts over $11 million in total economic impact of this anchor project.

The Award comes at an exciting time, with boards coming off windows and commercial activity returning to the neighborhood. Senator Jon Tester toured the building Monday, to witness first-hand the impacts that federal revitalization projects can bring to Montana. "Folks across Montana are proud of Butte’s colorful history. This project is an exciting one because it’s a great example of an investment that is creating jobs and opening up economic opportunities for the community. And it’ll strengthen Butte’s heritage for future generations." Senator Jon Tester.

Along with the significant economic and social impact to the community of Butte, the award recognizes the project’s creative collaboration and financial innovation. While Montana Community Development Corporation (MCDC) provided the tax credit financing for the project,
Glacier Bank of Butte provided the tax credit investment and debt financing. Additional federal tax credit programs came into play with the U.S. Park Service’s National Historical Preservation program as well. Various state grants and loans from local agencies, including the Butte Urban Revitalization Area and the Butte Local Development Corporation paved the way early on.

This is the third award MCDC has received for its tax credit projects. MCDC’s Town & Country Foods grocery store project in Bozeman and MCDC’s Peak Health and Wellness project in Helena were also awarded honors in the tax credit project field. The New Markets Tax Credit program has been used nationwide since 2000 but became applicable in rural states like Montana in 2008 when Senator Max Baucus spearheaded changes to the program.

"When banks, businesses and local development agencies put their expertise and financing tools together, Montana communities can build important economic development projects, and do it right." David Glaser, MCDC President. This mix of private and public resources helped make Kujawa’s determination and vision for a restored Uptown Butte a reality. The Development of Distinction Award honors that effort.

For further information on this story contact:

Lynn Dankowski

Marketing Manager

MCDC (Montana Community Development Corporation)

Phone: 406-728-9234 #215

[email protected]

http://www.mtcdc.org

For further information on the New Markets Tax Program or other business financing options in Montana contact:

Heidi DeArment

Vice President

MCDC (Montana Community Development Corporation)

Phone: 406-728-9234 #213

[email protected]

http://www.mtcdc.org