MassDevelopment.com: Press Room: $1.9 Million from MassDevelopment New Markets Loan Fund Supports Redevelopment Project, Two Area Businesses

$1.9 Million from MassDevelopment New Markets Loan Fund Supports Redevelopment Project, Two Area Businesses
December 5, 2005

Contacts:
Adam Bickelman, 617-330-2086
Janet Hookailo, 617-330-2018

MassDevelopment today announced three financing packages issued under the agency's New Markets Loan Fund for projects in northeastern Massachusetts. 29 South Canal LLC, owner and redeveloper of the 80,000-square-foot South Canal International Business Center in Lawrence, will use a $1.2 million New Markets loan to refinance debt and fund a number of renovations at the former mill. Owl Stamp Company, Inc. of Lowell will use a $138,000 New Markets equipment loan to purchase new machinery; and the Gloucester Maritime Heritage Center will use a $560,000 New Markets mortgage loan to refinance debt associated with the museum's recent reconstruction of two Gloucester hauling piers, as well as the Center's recent expansion initiative. These projects will result in the immediate creation of 40 new jobs.

"Our New Markets Loan Fund is a novel approach to getting more capital into Massachusetts neighborhoods that need an economic helping hand," said Robert L. Culver, MassDevelopment president/CEO. "These loans are attractive in comparison to conventional financing, offering low fixed rates and longer terms to small business owners and nonprofits located in certain federally mandated census tracts."

The New Markets Loan Fund draws on funds allocated to MassDevelopment in 2004 under the U.S. Department of the Treasury's New Markets Tax Credit (NMTC) program. Launched in 2002, the NMTC program seeks to stimulate economic and community development and job creation in low-income communities by attracting capital from the private sector through tax credits offered by conduit organizations like MassDevelopment.

MassDevelopment was one of 271 applicants competing for $3.5 billion in tax credit allocations in 2004. Of these applicants, 63 were successful nationwide, and MassDevelopment was one of only five recipients in the Commonwealth.

"The New Markets Loan Fund's attractive rates helped make the numbers work for our mill redevelopment project," said Art McCabe, president, 29 South Canal LLC. "I'm excited to have a role in revitalizing properties like this, since we're preserving a piece of history while adding jobs and attracting new businesses to the region."

Over the past three years, McCabe and his team worked to transform an 80,000 square foot mill building in Lawrence into the South Canal International Business Center. The facility serves as a trade center and incubator space for international companies interested in opening manufacturing or sales facilities in the United States. McCabe will use loan funds for renovations and facility improvements that will allow the business center to welcome more than 20 additional companies to Lawrence, and add an estimated 32 new jobs in the first two years.

"This loan program is an excellent fit for businesses like ours," said Peter Bergeron, president, Owl Stamp Company, Inc. "Given our business plan, size and projected growth, it was helpful to access a line of credit tailored specifically to our needs."

Owl Stamp Company, Inc. specializes in printed wide vinyl banners, laser engraved magnetic name tags, name plates, awards and custom stamps. The loan will enable the company to produce and market a new product - laser engraved custom self-inking stamps.

Gloucester Maritime Heritage Center is a working museum and aquarium which focuses on the maritime industry and its impact on the Gloucester-area. The museum includes a working marine railway used for removing boats from the ocean for repair. GMHC's shipwrights recently finished rebuilding the Boston Tea Party Museum boat, which will dock permanently on Congress Street in Boston. The Heritage Center also recently completed construction on a new science classroom featuring digital microscope technology, to further develop the organization's marine science program. Last year, the GMHC welcomed more than 25,000 visitors and provided programs for more than 2,200 school children.

"MassDevelopment has worked with us since our inception, five years ago," said Harriet Webster, executive director of the Gloucester Maritime Heritage Center. "The agency introduced us to the New Markets Loan Fund when we needed to refinance our existing loans. The program made it possible for us to get the financing we needed at a favorable rate; which allowed us to continue our work revitalizing historic ships."

MassDevelopment, the state's finance and development authority, works with businesses, financial institutions and local officials to stimulate economic growth across the Commonwealth. In fiscal year 2005, MassDevelopment financed or managed 158 projects statewide representing an investment of nearly $1.9 billion in the Massachusetts economy. These projects are supporting the creation of 2,769 housing units and more than 9,800 jobs: 4,702 permanent and 5,100 in construction.