Travois New Markets and its project partner, the Navajo Tribal Utility Authority, were recently honored with a community development award from the Novogradac Community Development Foundation (NCDF). The two organizations received the Non-Metro Qualified Low-Income Community Investment Award.
In February 2009, the Navajo Tribal Utility Authority utilized $6.4 million in New Markets Tax Credits from Travois New Markets’ allocation to develop two electrical substations on the Navajo Nation and bring power to a remote region that was previously without it. NTUA upgraded a 40-year-old failing electrical substation in Cudeii, N.M., and constructed a new substation in Shiprock, N.M.
The NMTC investment allowed NTUA to finance the project without raising its customers’ rates and complete the project in one year instead of in phases. It brings power to 400 families who were previously living without electricity and is expected to catalyze more than $41 million in other economic development for the Navajo Nation.
A substation is a small area that contains a transformer and associated electrical equipment. The equipment transfers the powerful current that runs through large lines — the type commonly seen in rural areas along highways — to a less powerful current that runs through the lines connected to individual homes.
“This project is extremely deserving of this award, and we are proud to be involved,” said Phil Glynn, director of Travois New Markets. “The Navajo Tribal Utility Authority is an innovative non-profit that recognized the potential of New Markets Tax Credits, and we encourage other tribal developers to do the same. We would also like to thank U.S. Bancorp Community Development Corporation for providing the capital needed to launch the project.”
The NCDF awards recognize the contributions of individuals at the federal, state and local levels who have had a particularly strong impact on the field of community development, as well as honor community development entities (CDEs) that have made exceptional community development investments in small businesses, operating businesses, real estate, and metro and non-metro areas. The awards were presented Thursday during the Novogradac & Company LLP’s New Markets Tax Credit Investors Conference, held in Chicago.
About NTUA
The Navajo Tribal Utility Authority is a non-profit enterprise established by the Navajo Nation Council to provide multi-utility services to the Navajo Nation and the Navajo people. Since 1959, NTUA has supplied electricity, water, natural gas, wastewater treatment, and photovoltaic (solar power) services to residents throughout the 26,000 square-mile Navajo Nation, which spreads across northeastern Arizona, northwestern New Mexico and southeastern Utah.
About Travois New Markets
Travois New Markets, a nationally certified Community Development Entity (CDE), is dedicated exclusively to meeting the needs of American Indians in low-income communities. Travois New Markets received a $30 million allocation of New Markets Tax Credits in 2007 from the CDFI Fund. With this allocation, Travois New Markets has supported three projects: the construction of two electrical substations for the Navajo Tribal Utility Authority; the renovation of the historic Hotel Andaluz in downtown Albuquerque, which will set aside 20 percent of hotel jobs for American Indians; and the construction of the Goodnews Bay Regional Plant in Platinum, Alaska. The Travois family of companies offers development assistance, compliance support, design services and comprehensive training to the nation’s American Indian population with clients across the United States from Washington to Maine.
About the Novogradac Community Development Foundation
The Novogradac Community Development Foundation is a private not-for-profit entity that addresses the issues of community and economic development, housing and the preservation of America’s neighborhoods. The NCDF fosters the development of knowledge, supports beneficial public policy, and disseminates community development information in its endeavors to establish positive change in the nation’s communities. For further information, go to www.novoco.com.