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Finance committee approves New Markets Tax Credit borrowing to help fund BioForge
Summary
The University of Pittsburgh finance and budget committee approved a resolution authorizing borrowing under the federal New Markets Tax Credit program to partially fund BioForge construction; the transaction is expected to generate roughly $1.5 million in incremental proceeds and carry a 30‑year debt obligation that is expected to be forgiven after a seven‑year compliance period.
PITTSBURGH — The University of Pittsburgh’s finance and budget committee on Friday approved a resolution authorizing the university to borrow under the federal New Markets Tax Credit (NMTC) program to partially finance construction of BioForge, a 185,000‑square‑foot life‑sciences facility in the Hazelwood Green development.
Jack Tighe, chairperson of the finance and budget committee, opened the public meeting, confirmed a quorum and moved the resolution after a presentation from Dwayne Pinkney, the university’s executive senior vice chancellor for finance and administration and chief financial officer. Pinkney summarized the structure and expected effects of the transaction: “Today, we are seeking the committee’s approval of a resolution authorizing the university to borrow funds under the New Markets Tax Credit program to partially fund the construction of BioForge.”
Pinkney said the university has secured commitments from community development entities affiliated with McCormick Baron Salazar and PNC Bank to use a portion of their allocated tax credits in support of raising capital for BioForge. As a standard component of the NMTC structure, Pinkney said the university will enter a debt agreement that will remain on the university’s balance sheet during the program’s mandatory compliance period and is expected to be forgiven at the conclusion of the seven‑year performance period. He described the arrangement as a 30‑year obligation totaling approximately $9.1 million and said the net effect is expected to yield about $1.5 million in incremental proceeds to reduce internal capital budget draws.
Responding to a committee question about the financial benefit, Pinkney said, “It’s a $1,500,000 that will help with the capital construction.” He also provided a construction schedule update: the base building is substantially complete with a final contract closeout expected by January; interior work is expected to be substantially complete by May 2026, with final contract closeout slated for August 2026. Pinkney said the building was budgeted at $120,000,000 and that final costs are expected to come in well under that budgeted amount.
Pinkney acknowledged philanthropic and public partners supporting the project, citing commitments from the R.K. Mellon Foundation and the Commonwealth of Pennsylvania’s Redevelopment Assistance Capital Program (RACP). He also thanked collaborators in the health sciences, naming Dr. Sheikhar and Jeff Beese for identifying the NMTC opportunity.
After brief discussion and no requests for further clarification, the committee approved the resolution by voice vote. The transcript records members saying “aye,” with no recorded oppositions or abstentions; the chair announced the motion carried. The committee had earlier approved the minutes of a prior public meeting as a separate procedural item, and then adjourned.
The resolution authorizes the university to enter the NMTC‑structured borrowing and related agreements described to the committee; the transaction remains subject to the usual documentation and closing conditions for tax‑credit financing and any subsequent approvals required by the university.
