National Community Development Groups Invest $24 Million in New Markets Tax Credits for Passport’s Health and Well-Being Campus
LOUISVILLE, Ky.--(BUSINESS WIRE)--Dec 20, 2018--One of Louisville’s most anticipated real estate development projects has drawn significant attention and support from prominent national investors. A collection of financial leaders has awarded Passport Health Plan – a nonprofit, Kentucky-based Medicaid managed care organization – millions of dollars in special tax credit financing to help bring the company’s new headquarters and Health and Well-Being Campus to reality in downtown Louisville.
Three Community Development Entities (CDE) are combining to provide $24.35 million in New Markets Tax Credit financing to Passport, bringing $8.55 million in subsidy to assist the project. The CDEs are the National Development Council, Reinvestment Fund, and Telesis Corporation. SB Friedman Development Advisors acted as consultants for this project. PNC Bank will serve as the investor for the $8.55M in tax credit equity.
“The Passport Health and Well-Being Campus will further allow us to meet our shared goal with the Kentucky Department for Medicaid Services (DMS) to help our members develop job skills, acquire education, and ultimately become employed and have access to private insurance,” said Passport CEO Mark Carter. “Through our collaboration with community partners focused on healthy food, affordable and safe housing, and other services, we will reduce the overall cost of Kentucky’s Medicaid program in the future.”
The New Markets Tax Credit (NMTC) was established in 2000 to provide incentives for investment in low-income communities, according to the Tax Policy Center. Congress authorizes the amount of credit authority, which is then allocated to qualified applications by the Treasury Department. According to the NMTC Coalition, $42 billion in direct NMTC investments were made between 2003 and 2015, leveraging nearly $80 billion in total capital investment to businesses and revitalization projects in communities with high rates of poverty and unemployment.
“The Passport Health and Well-Being Campus is organized around social determinants of health, which are conditions in the environments in which people are born, learn, work, play, worship, and live that affect a wide range of health and quality-of-life outcomes,” Carter said. “Along with the Passport headquarters – which will see more than 300 new jobs from participating partners over the coming years – there will be strong retail and service-based opportunities available on the campus, along with housing, retail, and community-gathering opportunities available.”
The 21-acre Passport Health and Well-Being Campus qualified for an NMTC because it is central to the revitalization of West Louisville, which is in turn the most critical neighborhood development priority for the Metro Louisville region. According to the 2011-2015 American Community Survey, the Census tract where the project will be situated has a poverty rate of 56.6 percent, a median family income equal to about 35% of the Area Median Income (AMI), and an unemployment rate of 19.1 percent (more than twice the national average).
About Passport Health Plan
Passport Health Plan is a provider-sponsored, non-profit, community-based health plan administering Medicaid benefits to more than 310,000 Kentuckians. Passport has been contracted with the Commonwealth of Kentucky to administer Medicaid benefits since 1997. For details, please visit passporthealthplan.com or call toll-free (800) 578-0603. Passport also operates a Medicare Advantage program, called “Passport Advantage,” for residents of 16 Kentucky counties around Greater Louisville who are eligible for both Medicaid and Medicare. For details, go online to passportadvantage.com or call toll-free (844) 859-6152.
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CONTACT: Michael A. Rabkin, Communications Director
KEYWORD: UNITED STATES NORTH AMERICA KENTUCKY
INDUSTRY KEYWORD: PRACTICE MANAGEMENT HEALTH OTHER HEALTH PROFESSIONAL SERVICES URBAN PLANNING FINANCE INSURANCE CONSTRUCTION & PROPERTY
SOURCE: Passport Health Plan
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PUB: 12/20/2018 11:11 AM/DISC: 12/20/2018 11:11 AM