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Montana CDC uses New Market Tax Credits to Improve Access to Healthcare in Idaho

Rexburg, ID —-

A new medical facility in Rexburg, Idaho, will help address the region?s shortage of women?s and children’s physicians and provide new employment opportunities in a rural region. Montana CDC and Wells Fargo worked together to provide $12.95 million in New Markets Tax Credits (NMTC) for the Targhee Professional Offices, allowing developers to move forward with construction. The facility will be completed and operational by spring of 2015.

Rexburg’s 60% growth since 2000 has led to a gap in healthcare access for women and children. The community also faces challenges providing adequate employment opportunities to a population base where income levels are well below state and national averages. In response to the rapid changes in the area, the community’s economic development plan identified increased access to healthcare and job creation as key priorities.

Targhee Professional Offices is the second medical facility in Idaho for which Montana CDC has secured NMTC financing, a federal economic development tool that encourages investment in designated low-income areas in order to generate economic activity and revitalize communities.

"Idaho has struggled with a statewide shortage of doctors that has compromised access to healthcare for the past several years. Montana CDC’s goal with our New Market Tax Credit allocation for Idaho is to specifically address the physician shortage, as well as to support businesses in the manufacturing industry and projects that emphasize downtown revitalization," says Dave Glaser, President of Montana CDC. "The Targhee medical building both increases the presence of healthcare professionals and provides new jobs."

The Hemming Corporation is the developer for the Targhee Professional Offices. Richie Webb, President of the development company, notes the changes the project will bring.

"The opportunity provided by New Market Tax Credits and our positive working relationship with Montana CDC and Wells Fargo has enabled us to further pursue redevelopment and revitalization of the core of the City. We believe this project will help to meet specific needs of our growing community and be another building block toward positive growth and development for this region," said Richie Webb of the Hemming Corporation, which is the developer on the project.

The addition of the 53,000 square foot Targhee Professional Offices will provide critical medical services as well as create 40 new jobs in a region faced with low-income households and a poverty rate of 22.4%. Members of Idaho’s congressional delegation recognize the importance of job creation in rural Idaho and support the NMTC-backed Targhee project.

"I am pleased that the Targhee Professional Offices in Rexburg will provide much needed relief to the growing need for medical services in Madison County. As this project concludes, Rexburg will benefit by the creation of new jobs, spurred economic growth, and medical services for Idahoans who are in need," said U.S. Senator James Risch.

"The personal health of Idahoans and economic health of the Rexburg area will get a big boost with the Targhee project," noted Idaho Senator Mike Crapo, a member of the Senate Finance Committee. "Montana CDC and the Targhee Professional Offices planners are to be congratulated for their foresight to address health care needs in the region, and the new job creation this project brings is welcomed."

Montana CDC worked with partner Wells Fargo to provide the New Markets Tax Credit financing for the new medical offices.

"Community is at the center of what we do and we are only as strong as the communities we serve," said Lee Winslett of Wells Fargo’s Community Lending & Investment group. "The jobs and medical assistance this facility provides will undoubtedly have a lasting impact on the health and well-being of the Rexburg community."

The Targhee Professional Offices will house women’s health, OB-GYN, pediatric, and internal medicine physicians as well as offices for related medical services. In addition to the increase in available healthcare services, residents in the region will see more wide-ranging economic benefits, including:

* Construction of two new buildings that is anticipated to create approximately 32 construction jobs.

* Retention of approximately 40 full-time jobs.

* Creation of 30 permanent, full-time jobs.

* Development of a project that aligns closely with a comprehensive revitalization plan for the community.

* The use of environmentally sustainable building practices.

Montana CDC has secured NMTC financing for both the Targhee project and Kootenai Medical Center in Couer d’Alene, which provided a similar impact in its community. Montana CDC received its first allocation of NMTCs in 2009, and since that time, the financing has spurred projects totaling nearly $165 million across Montana and Idaho. For more information on the New Markets Tax Credit Program or other business financing options in Montana, contact:

David Glaser, Montana CDC President, 406-728-9234, ext. 211, or visit Montana CDC?s website at: http://www.mtcdc.org

About Montana CDC

Headquartered in Missoula, Montana Community Development Corporation (Montana CDC) is a 501(c) 3 that provides business financing that can transform the lives of individuals and strengthen community prosperity. Since 1986, Montana CDC has lent over $250 million through its business loan program including New Markets Tax Credit enhanced loans. Additionally thousands of businesses have gone through Montana CDC’s consulting and training programs. With its financing and consulting tools, Montana CDC helps entrepreneurs start new businesses, helps business owners expand their businesses, and works to create vibrant economic communities with strong jobs.

About New Markets Tax Credits

New Markets Tax Credits (NMTC) were established by Congress in 2000 to encourage the investment of private capital in designated low-income communities in order to create jobs, generate economic activity and improve the quality of services in low-income communities and to low-income persons. NMTCs attract investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making qualified equity investments in specialized financial institutions called Community Development Entities (CDEs). In turn, CDEs provide below-market financing to transformative development projects in low-income communities across the country. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. For more information, visit http://www.cdfifund.gov.

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