CLIENT SOLUTIONS

Feed America Fund Addresses Food Deserts

TBCG advises Kroger executives on healthy food financing strategies

Kroger hired TBCG to work with executives and area managers to qualify stores for the New Markets Tax Credit program. TBCG designed the Feed America Fund as an Equity-Equivalent Product (EEP) to attract New Markets Tax Credits and improve Kroger’s ability to serve severely distressed low income communities and areas lacking the close proximity to a supermarket. TBCG devised this capital solution to attract Kroger stores and other grocery retailers into food deserts.

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The above store in Oak Ridge, TN is an area underserved by retailers and Kroger modified its Fred Meyer concept which includes apparel and household goods to develop its largest Kroger store in TN - 110,000sf.

In addition to a pharmacy, fresh foods and vegetables, the Oak Ridge store included Kroger's Little Clinic concept (where nurse practitioners offer services), and a bank (Suntrust) for this low income community underserved by retail services.

TBCG assisted Kroger in securing a New Markets Tax Credit allocation of $20 million to construct one of its largest stores in the Tennessee area (Oak Ridge) and invited TBCG to serve as a developer-partner. The Kroger-TBCG partnership has developed grocery stores in Ohio and Texas.


Brown Designed Redevelopment Plan, Eliminated Blight

Cincinnati Children’s Hospital leads renaissance of minority business district

Cincinnati Children’s HospitalTBCG understands that financing for a comprehensive redevelopment plan can be daunting, yet with the right mix of investment tools and community participation, great results can be achieved.

Deploying a creative phased-in financing approach that leverages major institutions as anchors for development and selecting projects that catalyze additional development , TBCG’s proven strategies can change the landscape in central city neighborhoods and the urban core.

Tony Brown brings his experience and success as the CEO of a large urban community development corporation, The Uptown Consortium, to service for his clients.

Cincinnati Children’s HospitalDuring his leadership , over $400 million was invested in new construction and neighborhood improvements in the Uptown area of Cincinnati leveraging NMTCs and creating 1,500 jobs within a five year period. The solutions Tony developed during his tenure at Uptown are the foundation upon which the TBCG strategic toolbox is built.

Cincinnati Children’s Hospital (CCH) led the renaissance in the city’s Avondale neighborhood by agreeing to become the anchor development for revitalizing the major commercial corridor near the hospital. CCH agreed to build 135,000sf medical office building adjacent to the award winning, LEED certified, Herald Building, a minority-owned enterprise.

Cincinnati Children’s HospitalTony pioneered the use of NMTCs for site acquisition and neighborhood stabilization. NMTCs provided the investment capital and flexibility needed to overcome disinvestment and accomplish revitalization.

Tony is a strong believer that any redevelopment plan should be based on community consensus, economic inclusion, as well as thoughtful and economically sustainable projects.


Brown Structures Financing for University District

UC Invests Endowment for Business District Redevelopment

The University of Cincinnati (UC) leads the new urban university movement by investing over $100 million in endowment funds for community development projects around the University’s extensive campus. In the Corryville neighborhood, UC funded the capital to revitalize a neighborhood business district.

Tony designed a commercial corridor “bookend” strategy, calling for $50 million in development projects on both ends of the street, working toward the middle to redevelop a neighborhood business district along the eastern border of the University’s campus. This is the TBCG approach to place-based community development - think big and be bold while approaching the financing of projects in bite-size catalytic pieces.

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After illustrating the subsidy value of NMTCs to The Kroger Co., the project won their pledge of $15 million to re-build and expand an existing store as a marketplace anchor at the south end. A second major anchor, a flag hotel, secured tax increment financing (TIF) revenues to mitigate the investments made by the University and area hospitals. These institutions provided the capital to build the parking structure below the hotel. UC and area hospitals acted as leverage lenders in a NMTC transactions and the equity was provided by Fifth Third Bank, JPMorgan Chase and PNC Bank through an Investment Fund created by Tony during his tenure as CEO of the Uptown Consortium.


Marina Village Set to Bring Economic Vitality to Waterfront

Besieged with problems for 20 years, Brown engineers financing plan for Riviera Beach, Florida Marina

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The Riviera Beach marine industry is poised to be a major economic hub for South Florida’s 162,000 marine jobs, representing $5 billion in wages and billions more in direct and indirect economic output. However, this City’s future and potential were threatened by disinvestments in the public realm; blighted real estate and a reputation as an unsafe city given its high crime rate and political in-fighting. Brown took the helms of the Riviera Beach Community Redevelopment Agency from 2010 – 2016 as its executive director and with his expertise in community development finance acted as a government sponsored real estate developer. The results:

  • Secured nearly $26 million in financing from BB&T Bank secured by tax increment revenues as part of an integrated public-private plan to renovate the city-own marina, rebranded as Marina Village, and set to spark over $75 million in new private development on city-owned land.
  • Secured $7 million in NMTC financing from a subsidiary of National Development Council (Key Bank as investor) to rebuild a community facility formerly known as Newcomb Hall as a new anchor in Marina Village.
  • Organized a Community Development Corporation for neighborhood development and secured over $1.3 million in grant development funds to build 5 homes within two years of formation.

Brown’s experience in Riviera Beach led him to form TBCG’s Community Partners Fund. TBCG identifies mission-driven partners to offer conventional debt financing from its banking partners in areas of high community redevelopment importance to government agencies and community development corporations (CDCs) in Florida. By working exclusively in redevelopments areas or with CDCs certified as Community Housing Development Organizations (“CHDOs”), TBCG can serve as developer and/or offer flexible financing through its banking partners and assist in revitalizing target areas.


TBCG Advises Transit Authority on Development Financing

TBCG designs financial structure for transit oriented development

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Jacksonville, FL - In 2010, TBCG was selected by the Jacksonville Transportation Authority (JTA) to design a financing strategy that will close a $50 million financing gap for various transit oriented developments throughout the city of Jacksonville, Florida. Jacksonville is the nation’s largest city in square miles and the lack of access to public transit is one of the economic impediments to residents lacking personal transportation to reach Jacksonville’s major job centers.

The first development, the Jacksonville Regional Transportation Center (JRTC) is a center to house the region’s leading transportation entities and consolidate six modes of transportation (bus, bus rapid transit, Greyhound, Amtrak, commuter rail and Skyway). The Regional Transit Center will include mixed-use developments, bicycle and pedestrian amenities, as well as structured commuter parking to accommodate park & ride vehicles.

TBCG is structuring transportation funds in a leveraged NMTC transaction to attract equity. The JTA has begun to explore utilizing the NMTC program as a means to attract private capital to fill financing gaps, meet federal requirements for local match and accelerate the start of construction on transit projects