The Minnewaukan Public School District has a new school for its kindergarten through 12th grade students, thanks in part to New Markets Tax Credit (NMTC) financing provided by Travois New Markets and Chase, Community Development Banking, which played a dual role in the project.
The old school building was continuously threatened by flooding from the adjacent Devils Lake and was inadequate to meet the needs of the student body, faculty and administration. The new building is safe from floodwaters and provides new classrooms, a cafeteria, recreational areas and common spaces.
The student body consists of 287 children, of which 90 percent are enrolled members of either the Spirit Lake Tribe or the Turtle Mountain Band of Chippewa Indians. Their first day in the new school was Jan. 3, 2013, and a grand opening to celebrate the new building was held on Jan. 21.
“In view of the dilemma that we were in, New Markets Tax Credits were a life saver,” said Myron Jury, Minnewaukan Public School District superintendent and the mayor of Minnewaukan. “The school and staff, as well as the 287 children that attend school here and their parents, extend a hearty thank you to the New Markets Tax Credit program, Travois, Chase and Northland Securities for the much needed help.”
The school district sought NMTC financing after it was unable to use flood insurance as collateral on a conventional loan. Both Travois New Markets and Chase contributed NMTCs for the project; Travois New Markets provided $11.2 million in NMTCs, and Chase provided $2 million in NMTCs. Chase also acted as the investor, purchasing the tax credits and providing more than $4.1 million in equity for the $12.8 million facility. Northland Securities helped the school district through the NMTC process and in issuing two other financing methods: more than $1 million in Impact Aid certificates from the U.S. Department of Education’s Impact Aid Program and $1.4 million in lease revenue bonds. The remaining costs were paid with a $6 million Impact Aid Grant and more than $500,000 in State Aid Grant funds from North Dakota.
“Travois believes education is the foundation of future economic development,” said Phil Glynn, Travois vice president of economic development. “The Minnewaukan School is building a strong foundation for the future of American Indian families in the region.”
The new school provides jobs for 65 full-time employees, including administrators, 26 teachers, education specialists, itinerant staff, custodians, cooks, bus drivers, paraprofessionals and school board members. Construction jobs were also created as the building was being constructed, and the school district has hired an additional teacher and has plans to hire at least one more teacher and paraprofessional next school year.
“Chase is committed to investing in projects that have a positive and sustainable impact on local communities,” said Aaron Seybert, vice president of Chase New Markets Tax Credit Group. “We are proud to have helped build a safe, new learning environment for Minnewaukan students.”
