on target new start community development. on target

ON TARGETNew Start Community Development

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What We Do- We assist developers, municipalities and non-profits in creating, developing and completing projects with complex capital stacking. In addition, we self-develop as needed.

Summary

New Start Community Development- US Treasury certified “Community Development Entity” able to allocate equity investments raised through New Markets Tax Credits

Service Area- Primarily the State of Alabama with projects throughout the Southern United States

How we do it– We deliver funding from Private Investors, Tax Credit Investors, Federal grants, Cooperative and Improvement Districts and multiple other sources.

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Example Project

Bradenton Florida

Desperate need of Healthy Food Alternatives.Distressed Census TractTrying to bring Grocery Store to area for 5 yearsDevelopers could not make the project happenEnter New Start Community Development

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Land $ 800,000Construction $ 2,500,000Soft Costs $ 900,000Infrastructure $ 500,000TI & leasing $ 300,000Other Fees $ 800,000Total Cost $ 5,800,000

NOI $ 300,000Investment Value (9%) $ 3,300,000

Loan to Investment Value 175%

Problem: How do you pay for a $5.8M project when it’s worth $3.3M to the investment world?

Solution:

Project Cost $ 5,800,000NMTC Equity $ (1,800,000)HHS Grant $ (700,000)State NMTC $ (900,000)City TIFF $ (300,000)Total Cost $ 2,100,000

NOI $ 300,000Investment Value (9%) $ 3,300,000

Loan to Investment Value 65%

Actual Project Numbers

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36%

5%1

6%

31%

12%

Leveraged NMTC HHR City St NMTC

Financing Model

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A True Public Private Partnership

Developer• Leveraged Loan• Cash

Federal• NMTC &

Grant

State•NMTC

City•Tiff

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PATRICK A. DENNEY

NEW START COMMUNITY DEVELOPMENT100 41ST STREET SOUTHBIRMINGHAM, AL 35222

PATRICK.DENNEY@NEWSTARTCD.COM205-397-9398