Release Date: 04-26-2013
Allocations will support job creation and innovative business ventures in underserved communities across the Northwest
Portland, Oregon — Just days after the public launch of a successful New Markets Tax Credit-supported project, Ecotrust has learned that its subsidiary, Ecotrust CDE, was awarded $45 million of additional New Markets Tax Credit allocation. Ecotrust will put the new federal financing toward innovative initiatives that create economic, social and environmental benefit in rural and disadvantaged communities in the Northwest and beyond. Ecotrust used past allocations of New Markets Tax Credits to support the Bullitt Center, the world’s leading-edge commercial green building, which opened on April 22, 2013. The 50,000-square-foot building, which continues renewal at the edge of Seattle’s Central and Capitol Hill Districts, will generate all of its own energy and use a rainwater filtering system to meet all of its water needs. Construction created 160 jobs and invested $30 million into the region’s economy. “The Bullitt Center is the latest example of how Ecotrust uses New Markets Tax Credits and other forms of capital to push environmental and social innovation while creating jobs and successful new business models,” says Spencer Beebe, chairman of Ecotrust. Ecotrust’s latest allocation is part of $3.5 billion in New Markets Tax Credit awards to 85 organizations nationwide by the Treasury Department. This money is to be invested in creating and protecting jobs in disadvantaged and distressed communities. This is the fourth allocation of New Markets Tax Credits that Ecotrust CDE has received since 2003. Senator Jeff Merkley (D-Oregon) celebrated the news. “This is great news for Ecotrust and the entire Northwest,” said Merkley. “Ecotrust has been an incredible partner to Oregon’s rural communities, supporting economic development in environmentally sustainable industries ranging from forest products to clean energy. I look forward to seeing this new funding turn into jobs and economic activity across Oregon.” Washington Governor Jay Inslee said: “Wood products is a backbone, legacy industry in the Northwest. This support for innovation in green building will help spur new jobs in distressed rural communities with deep roots in the forestry sector. I applaud this opportunity to leverage public and private funding to support cutting-edge projects and ignite sustainable economic growth.” Past Ecotrust allocations, totaling $122 million, have supported clean energy projects, a new model of timberland management, and forest products innovation, including:
- Ochoco Lumber Company, which refinanced and stabilized the last remaining mill in John Day, Oregon and included the construction of a new pellet fuel facility.
- Chobani, Inc, formerly Agro-Farma, Inc, to renovate and upgrade its yogurt manufacturing facility located in an economically distressed county of New York, and to finance the installation of a biogas plant to convert wastes from the yogurt production process into energy.
- Ecotrust Forest Management, to support the purchase of 12,500 acres of timberland in Washington and Oregon and the conversion of the land to Forest Stewardship Council-certified management, for multiple outcomes of timber, jobs, carbon sequestration, clean water and wildlife habitat.
- Allocation awards totaled $3.5 billion, or about 16 percent of the total amount requested by applicants.
- Thirty percent of the total applicant pool – 85 CDEs – were awarded allocations.
- Allocation awards range in size from $15 million to $80 million. The median allocation amount was $40 million and the average allocation amount was about $41.2 million.