MCDC's Stinger project gets national award
The Montana Community Development
Corp’s $17 million Stinger Welding expansion project in Libby,
which was announced this summer, has received the top award for
best use of New Markets Tax Credits among projects from across the
country.
The award was presented to Montana CDC
by the Novogradac Community Development Foundation during its
annual New Markets Tax Credit Conference in Chicago last week.
Paul Rumelhart, the Director of the
Port Authority, said the recognition is worthy of the effort that
went into the project.
“It’s a national award, which is great.
This project demonstrated how the a community can pool together its
resources over time to create meaningful jobs in Lincoln County,”
Rumelhart said.
A message left for Carl Douglas, CEO
for Stinger Welding, for comment was not returned.
Novogradac & Company LLP is one of
the leading New Markets Tax Credit accounting firms in the nation.
The Libby project won the top award for Operating Business of the
Year.
The award recognizes Montana CDC’s
vision and outstanding contributions in the field of community
development.
“Truly representative of some of the
best the industry has to offer, (Montana CDC and other award
winners) are testaments to the strength and caliber of all involved
in the New Markets Tax Credit program,” said Michael J. Novogradac,
managing partner of the Novogradac & Company LLP.
Along with the significant economic and
social impact to Libby, the award celebrates the creative
collaboration and financial innovation that made the project
possible.
Douglas had been working with local and
state enitites to put a financing package together. When lending
constraints brought about by the recession threatened to derail the
project, Montana CDC stepped in with the tax credits and a tax
credit investor willing to invest in Libby.
The tax credit investor for the Libby
project was the Urban Investment Group at Goldman Sachs. Montana
CDC first sat down with Goldman at Sen. Max Baucus’ Butte Economic
Summit last year. Goldman’s analysis of the Libby project confirmed
what people in Libby already knew — that the skilled and dedicated
workforce in Libby would be a huge asset for a new industrial
employer in their community.
Since the deal closed in July, Stinger
has put 40 people to work, bringing total employment to 86, with
plans to hire more. Eventually, Stinger will employ one out of 10
people in Libby.
The catalytic effect of Stinger’s
investment in Libby includes ancillary job creation, an increase in
local spending, and tax revenues to improve infrastructure and
social services. It also serves as an example for additional
private investment in Libby.
After suffering decades of economic
decline and serious environmental issues, Libby has found a way to
reverse its fortunes and rebuild econonomic vitality and return
civic pride. It is exactly this type of impact that the tax credit
program is designed to create and the reason the Stinger project
was singled out for a top award.
Montana CDC is honored by the Award and
grateful to all of the people that made it possible, Baucus who
made this financing tool applicable in rural states, our partners
on this project, Stinger Welding and Goldman Sachs, the Kootenai
River Developoment Council, the Montana Department of Commerce,
Lincoln County, Lincoln County Port Authority and the City of Libby
who worked together to lay the groundwork for this project.
Through collaboration and access to the
latest financing tools, Montana entrepreneurs can do truly great
things for themselves and their communities — truly, great,
award-winning things.
View award video that was presented at
Novogradac NMTC conference last week.