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Council approves $9 million NMTC transaction to expand Strong Start Academy at Tony Hsieh Education Center
Summary
The council approved two resolutions to authorize New Markets Tax Credit (NMTC) transaction documents and a cooperative grant agreement to support a classroom expansion at Strong Start Academy at the Tony Hsieh Education Center. City staff described the project and noted LVCIC and US Bank roles as investor and CDE.
The City Council voted to approve two related resolutions authorizing New Markets Tax Credit (NMTC) transaction documents and a cooperative grant agreement to support an expansion of Strong Start Academy at the Tony Hsieh Education Center, 320 South Ninth Street.
Zena Babsky, Director of Economic and Urban Development, told the council the project is part of the city’s work with the Las Vegas Community Investment Corporation (LVCIC), a certified community development entity that received a $60 million NMTC allocation in the prior cycle. Babsky described the proposed addition as a 9,500-square-foot building with nine classrooms to expand the charter school's campus.
Babsky said the overall project cost and financing structure includes an allocation of new market tax credits being purchased by an investor (US Bank) and indicated that LVCIC will transfer $9,000,000 toward the project and that LVCIC funding at closing will include approximately $2,000,377 (amount as stated in meeting record) to the project. "With those funds, we were able to deliver on 10 great community projects," Babsky said describing previous LVCIC work and pipeline projects.
During the presentation, staff reviewed the governance and compliance structure for NMTC-financed projects and said a seven-year compliance period will follow closing. City Attorney staff recommended reading both agenda items into the record and taking the motions back-to-back to approve the cooperative grant agreement and the NMTC transaction documents.
Councilwoman Diaz moved to approve both items (Agenda items 26 and 27). The council posted both motions and the record shows both items passed after council votes.
The measures authorize the city to enter transaction documents that permit transfer of the NMTC allocation through the LVCIC structure and to ratify related actions by city officers. City staff said the project will expand classroom capacity for an existing charter operator; detailed statutory or implementation conditions were not added by council during the vote.
Council direction focused on project oversight and NMTC compliance during the required seven-year reporting period; staff will continue to coordinate with LVCIC and the investor to complete closing.
