New Markets Tax Credit partnership catalyzes investment in cleantech
research and development innovation, potentially creating 600 new jobs
in Los Angeles
LOS ANGELES--(BUSINESS WIRE)--Jan. 9, 2014--
U.S. Bank has closed on approximately $14 million in New Markets Tax
Credit (NMTC) equity to support the $46 million development of the La
Kretz Innovation Campus, a new cleantech industry hub at 5th and Hewitt
Streets in the Cleantech Corridor of Los Angeles.
The development was financed in partnership with the Los Angeles
Department of Water and Power (LADWP), Clearinghouse CDFI, Consortium
America, Los Angeles Development Fund, and Urban Research Park CDE.
“The Campus is going to be a game changer for Los Angeles,” said Mayor
Eric Garcetti. “As a major cleantech center, it will attract talent,
companies and capital to help build a green economy for our city.”
“The development of the La Kretz Innovation Campus serves as an example
of how public-private partnerships can jumpstart creativity and
innovation,” said Sean Foley, president for U.S. Bank in southern
California. “We’re proud to partner with other community leaders to
encourage clean technology in Los Angeles, and are excited that the
project will create quality jobs in the process.”
The new La Kretz Innovation Campus serves as a core element of the
city’s economic development strategy by supporting the growth of
start-up companies focused on solving global ecological challenges and
bringing new, well-paying jobs to the city. Opening in early 2015, the
campus will serve as a center of intellectual and commercial activity
and collaboration for the clean tech industry to grow, providing budding
entrepreneurs, engineers, scientists and policy makers access to
affordable incubator space and a toolbox of resources.
LADWP General Manager Ron Nichols said LADWP looks forward to working
with the U.S. Bank and its other partners at the La Kretz Innovation
Campus. “The campus is going to provide a tremendous asset by creating
new technologies for expanding energy efficiency to help our customers
save energy and money, transition out of coal, increase our use of
renewable energy and create a clean energy future for L.A.,” Nichols
said. “It will be a place where new technology and equipment can be
developed and tested – technology that will help us go further, faster
and more efficiently as our Power System continues to evolve.”
According to reports conducted for the Los Angeles Cleantech Incubator,
the campus’ anchor tenant, this project is expected to incubate up to 40
clean tech companies and create 600 direct jobs with average annual
wages of $45,000 in its first five years. The facility will also house
LADWP’s Energy Efficiency Technology and Customer Engagement Centers, as
well as a prototype manufacturing workshop, classrooms, a conference
room, and a wet lab, all housed under one roof and priced affordably for
early stage businesses.
U.S. Bank’s investment was made possible using NMTCs allocated by
Clearinghouse CDFI, Consortium America, Los Angeles Development Fund,
and Urban Research Park, along with USBCDE, LLC, U.S. Bank’s own
Community Development Entity, and leveraging available funds from LADWP
and a donation from Mort La Kretz, for whom the campus is named.
NMTCs transform private sector capital into below-market, flexible
financing. The availability of up-front NMTC capital means the incubator
can more fully focus on its mission of encouraging entrepreneurism
through clean technologies.
As initial cleantech startups grow, graduate and move into larger space
on the campus, they will attract other cleantech startups to take their
place. New startups will benefit from affordable rental rates as well as
coordinated efforts with an onsite workforce training provider, monthly
symposiums with industry leaders, and informal interaction with other
start-up and seasoned businesses.
Further, the campus will create one of the few green spaces in the city.
The campus’ outdoor public space will include a new park with benches
and free wi-fi and surface parking lots that will be shaded by a
photovoltaic solar canopy system.
About U.S. Bancorp Community Development Corporation
more than $12.3 billion in managed assets as of Sept. 30, 2013, U.S.
Bancorp Community Development Corporation, a subsidiary of U.S. Bank,
provides innovative financing solutions for community development
projects across the country using state and federally sponsored tax
credit programs. USBCDC's commitments provide capital investment to
areas that need it the most and have contributed to the creation of new
jobs, the rehabilitation of historic buildings, the construction of
needed affordable and market-rate homes, the development of renewable
energy facilities, and the generation of commercial economic activity in
underserved communities. Visit USBCDC on the web at usbank.com/cdc.
About U.S. Bank
U.S. Bancorp (NYSE: USB), with $361
billion in assets as of Sept. 30, 2013, is the parent company of U.S.
Bank, the 5th largest commercial bank in the United States. The company
operates 3,088 banking offices in 25 states and 4,937 ATMs and provides
a comprehensive line of banking, brokerage, insurance, investment,
mortgage, trust and payment services products to consumers, businesses
and institutions. Visit U.S. Bancorp on the web at usbank.com.
Source: U.S. Bank
Teri Charest, U.S. Bank Corporate Public Relations, (612) 303-0732, firstname.lastname@example.org