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Board approves CP5 loans and New Markets Tax Credit structure to fund recuperative care center
Summary
City Parkway 5 Inc. voted to authorize execution of transaction documents enabling up to $21.1 million in combined loans (including a $15.3M city loan) tied to New Markets Tax Credit financing to support a recuperative care center at 1581 North Main; staff said the project’s total cost is about $219 million and construction completion is targeted for September 2026.
The City Parkway 5 Inc. board on June 1 approved a resolution authorizing transaction documents to enable a New Markets Tax Credit (NMTC) financing structure intended to support development of a recuperative care center at 1581 North Main.
Dina Babsky, director of EUD, summarized the proposed structure to the board: Valley National Bank would serve as an investor, and combined loans and project benefit proceeds would provide roughly $21.1 million to the project. Babsky said the city would transfer $15.3 million to CP5 as Loan A and receive about $13 million back the day after closing to reimburse previously eligible project costs; a separate loan (Loan B) of approximately $5.8 million represents proceeds from the NMTC sale and is structured to be forgiven after a seven‑year compliance period.
“The total project cost for the recuperative care center is $219 million, roughly,” Babsky said, adding that the city has used NMTC structures before and that the parcel is located just north of the courthouse and the health and wellness center.
Babsky said construction completion is expected in September 2026. The board moved to approve the resolution; the Chair called the vote and stated the motion carried. The transcript does not record the motion mover, seconder or a roll‑call tally.
Staff said they will proceed to finalize the required agreements and return any items to the council as needed for implementation steps.
