MEMPHIS, Tenn., July 06, 2017 (GLOBE NEWSWIRE) -- Stonehenge Capital, in partnership with McCormack Baron Salazar and SunTrust Community Capital, announced today that it will help finance a new 164,000-square-foot commercial truck center and technician training facility being developed at the former Mall of Memphis property in Tennessee.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/Attachm...fde8de9468
The new TAG Truck Center will bring new life and hundreds of jobs to the property, which has remained vacant since the mall closed in 2003. The development will include a full-service body shop, retail store and distribution center, along with an expanded technician training facility. It is projected to provide 205 new full-time jobs for people with various skills, education and experience levels.
The project is the result of a private-public partnership with the city of Memphis through the Economic Development Growth Engine, or EDGE , the economic development agency for Memphis and Shelby County. TAG Truck Center collaborated with officials on a plan that would revive the abandoned mall site and allow the company to consolidate its five, outdated existing facilities into a single full-service operation.
“Redeveloping this long-vacant property marks a major step forward for our community, and we are thrilled to play a role in providing new jobs and economic opportunities for hundreds of Tennesseans,” said TAG Co-Founder and Chief Financial Officer Gary Dodson. “We are also grateful to the Economic Development Growth Engine Board for providing the expertise and assistance needed to move this project forward.”
The new facilities will be financed in part through Federal New Markets Tax Credits, which encourage investment in low-income communities. Created in 2000, the New Markets Tax Credit program provides tax credits in exchange for qualified investments in economically distressed areas, using the power of capitalism to create new economic opportunities.
“TAG Truck Center is a great example of a community-transforming investment made through New Markets Tax Credits, providing needed jobs in a low-income area and positioning the business for future growth,” said L’Quentus Thomas, Stonehenge’s Director of Community Development. “We’re pleased to help make a positive community impact and look forward to seeing the company’s ongoing success in Memphis.”
Laurel Tinsley, MBS Urban Initiatives CDE’s Executive Director, said, “TAG Truck Center is the type of investment that our low-income communities need – investments that bring access to living wage jobs for entry-level employees, on-the-job training, and room for career advancement. McCormack Baron Salazar, with 15 years of experience in Memphis, was able to introduce TAG to a number of nonprofit organizations working in Memphis’ low-income communities to bridge the gap between these quality jobs and the workers who need them.”
In addition to revitalizing the site, the TAG Truck Center will offer new education and job training opportunities in Memphis. The company plans to expand the TAG Technical Institute, an internal technician training school focused on teaching all aspects of commercial truck repair. The program is open to individuals with no prior experience. Upon graduation, students have the skills of fully certified technicians and are prepared to take the National Institute for Automotive Service Excellence certification exams.
Mechanics and technicians remain in high demand in the Memphis area. TAG anticipates that community residents who enter and complete the training program will be able to either work directly for TAG Truck Centers or fill one of the 2,800 mechanic and technician positions projected for the Memphis area in the future. Construction is expected to be completed in December 2017.
Stonehenge Community Development, a subsidiary of Stonehenge Capital, partnered with SunTrust Community Capital, a subsidiary of SunTrust Banks, Inc., to provide $10 million in New Markets Tax Credits allocation for the facility’s construction. MBS Urban Initiatives, a community development entity associated with McCormack Baron Salazar in St. Louis, Missouri, provided another $8 million of allocation, and SunTrust Community Development Enterprises LLC provided another $5 million in federal NMTC allocation to fill a critical financing gap for the project.
About Stonehenge Capital Company
Stonehenge Capital Company is a national leader in making affordable capital available to business owners and developers working to create jobs and opportunities in economically distressed communities across the United States. Through Stonehenge’s leadership in fulfilling the mission of New Markets Tax Credits at the federal and state levels, the firm has helped create and retain thousands of jobs for Americans in communities most in need of economic opportunity. Stonehenge’s expertise in tax credit assisted finance extends from community development to venture capital, historic rehabilitation, renewable energy and other industries in need of private capital investment. Visit Stonehenge on the web at www.stonehengecapital.com .
About McCormack Baron Salazar, Inc. and MBS Urban Initiatives CDE, LLC
McCormack Baron Salazar, Inc. is one of the nation’s leading developers, managers, and asset managers of economically integrated urban neighborhoods. Since 1973, the firm has been an innovator of community development and urban revitalization in 43 cities, having built more than 20,000 high-quality homes for families, children, seniors and veterans. MBS Urban Initiatives CDE, LLC, a Community Development Entity (CDE) affiliate of McCormack Baron Salazar, was founded to enhance, strengthen and revitalize low income communities and to stimulate economic opportunities for low income residents through investments in job creation, healthy food accessibility, education, and services within these communities. Since 2006, MBS Urban Initiatives has received seven New Markets Tax Credit awards totaling $350 million. TAG is Urban Initiative’s third investment in Memphis, TN. Visit McCormack Baron Salazar on the web at www.mccormackbaron.com .
About SunTrust Banks, Inc.
SunTrust Banks, Inc. is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. Headquartered in Atlanta, SunTrust operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states, along with 24-hour digital access. Certain business lines serve consumer, commercial, corporate, and institutional clients nationally. As of March 31, 2017, SunTrust had total assets of $206 billion and total deposits of $163 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. Join the movement at onUp.com.
Contact: Lindsey Hendren 503.912.7687
