Hitchcock's Market builds new Grocery Store with Financing through the NMTC Program
Florida Community Loan Fund, U.S. Bank, and Stonehenge Capital Company recently partnered with Hitchcock's Market to provide financing for expansion of its grocery store in Old Town, Florida. The location is recognized as a Food Desert by the USDA in this rural town, which is about an hour outside of Gainesville. Using the New Markets Tax Credit (NMTC) Program will enable Hitchcock's Market to double the size of its current store, serving up to 50% more area residents, employing 40 to 50 when completed, and creating an estimated 120 temporary construction jobs.
U.S. Bank today announced the project through a press release, an excerpt from which appears below. Click here to view the entire press release.
Click here to read more about FCLF and Hitchcock's Market.
OLD TOWN’S ONLY GROCERY STORE EXPANDS WITH FINANCING ARRANGED BY U.S. BANK, FLORIDA COMMUNITY LOAN FUND, AND STONEHENGE CAPITAL COMPANY
Construction of new market brings first pharmacy and additional products to the community while creating 140 construction, full- and part-time jobs
OLD TOWN, Fl. (September 18, 2013) – U.S. Bank, Florida Community Loan Fund, and Stonehenge Capital Company closed on more than $6.9 million of federal and state New Markets Tax Credit (NMTC) financing to help Hitchcock’s Markets double the size of its grocery store and bring a pharmacy to the rural city of Old Town.
Hitchcock’s Markets’ existing store is the only market serving the 10,220 person-community, located one hour outside of Gainesville. The development of a new market, built on land adjacent to the existing store, will allow the Central Florida chain to increase its capacity and serve up to 50 percent more area residents with expanded offerings not currently sold in the area.
“Nearly 70 years ago, Hitchcock’s Markets saw the need for food stores in rural Florida and began offering high-quality food in areas of critical need,” said Jennifer Westerbeck, assistant vice president of U.S. Bancorp Community Development Corporation (USBCDC). “Today, we’re proud to help the company continue its commitment to providing residents with easy access to healthy, affordable foods.”
“Federal and state New Markets Tax Credits offer an attractive option for raising capital, leveraging our resources, and ultimately, increasing our ability to best serve our customers,” said Douglas Winsor, president and COO of Hitchcock’s Markets. “The impact of providing a new, updated grocery store that can continue to bring healthy, fresh foods to a rural area is significant and will provide benefits for years to come.”
Hitchcock’s Markets raised the funds necessary to move forward with the construction project using NMTCs allocated by the Florida Community Loan Fund and Stonehenge Capital Company. Financing includes more than $2.2 million of NMTC equity from USBCDC and a $3 million loan from U.S. Bank. The project sponsor committed remaining funds.
“In addition to offering fresh foods and groceries to an enlarged customer base, the economic development impact is valuable, as the project creates jobs and stimulates additional business at the site,” said Nelson Black, director of lending of Florida Community Loan Fund. “This project meets our goal of investing in fresh food access, and we’re thrilled to help bring it to life.”
