Melnea Hotel and Residences

In December 2016,  BIDFA, as conduit issuer of an Enterprise Zone (EZ) Facility Bond, closed on $21.5 million in financing to construct Roxbury’s new Melnea Hotel. The total development cost is $38 million. Additional funding was provided by New Market Tax Credits, a MassWorks grant, and developer equity. Construction of the new hotel is slated for completion on —-.

This 135 room Residence Inn by Marriott will be located at the corner of Melnea Cass Boulevard and Washington St.  Colwen Management, an award-winning hotel developer and operator and Urbanica, Inc., a transformative development company with extensive local development experience have partnered to build the hotel.

BIDFA, as a conduit bond issuer qualified this project for Tax-Exempt financing as an Enterprise Zone Facility Bond. Cambridge Savings Bank is the bond purchaser. In these transactions, the tax exempt treatment means that the bond revenue is tax-exempt revenue for the purchaser. The purchaser then passes along a lower interest rate to the borrower. As happened in this case, the lower interest rate facilitates a project that otherwise wouldn’t cash flow, and couldn’t be built. This tax exemption refers to federal and state taxes. City of Boston tax revenue is in no way impacted. Additionally, the credit of the borrower, and not that of the City of Boston, BIDFA, or the Commonwealth of Massachusetts, is pledged to repay the bonds.

To qualify for an EZ Bond, the borrower must guarantee that 35% of all permanent jobs created by the project must be Boston residents from Boston census tracts that have a poverty rate of at least 20%, and/or a census tract where the median family income does not exceed 80% of the Boston-Cambridge-Newton Metropolitan area.

This project will bring important change to the Dudley Square neighborhood and will generate significant jobs and benefits for local residents. To facilitate this local job creation, the Developers are contributing $400,000 to a job training fund to be administered by the Mayor’s Office of Workforce Development. They will also provide on-site job training. The hotel is still under construction, but the projected long term job creation goal calls for 48 permanent positions. These jobs will pay a minimum of $18 per hour, well above the industry average.

Outreach for construction site jobs has been outstanding. As of March 2018 there have been 266 persons employed on the site. Of those 65.9% are minorities, 11.3% females and 53% of all workers are Boston residents. This exceeds the Boston Jobs Policy targets of 25% minority, 10% female and 50% Boston residents.

East Boston Neighborhood Community Health Center

East Boston Neighborhood Community Health Center (EBNHC) was issued a $11.2 million tax-exempt 501(c)(3) bond through BIDFA.

  • The clinic provides over 300,000 patient-visits per year, serving the diverse and low-income population of East Boston, Winthrop, Revere, and Chelsea.
  • EBNHC’s patient roster grew annually by several thousand patients.
  • Despite having twelve buildings totaling almost 260,000 square feet, EBNHC reached capacity as a result of this growing demand, and the organization invested in this new facility to better serve its patients.
  • The bond issuance provided the funds for the construction of a new clinical/office building containing approximately 48,000 square feet of gross floor area on four levels.  The project includes facilities for clinical, office, and administration and contains related retail space at the ground level.

Boston Renaissance Charter Public School

Boston Renaissance Charter Public School was issued a $16.6 million tax-exempt 501(c)(3) bond through BIDFA.

  • The bond issuance allowed for the construction of a new campus in Boston’s Hyde Park neighborhood suited to the school’s specific educational needs.
  • The 107,000 square foot, state-of-the-art facility provided an exceptional learning environment for more than 800 Boston children, and employs approximately 176 teachers and administrative staff.

Third Piece Knitwear

Third Piece Knitwear previously had only an online and “pop up” presence. After the company received a $150,000 loan from the BLDC, owner Kristen Lambert opened an exciting new retail store in the South End. The company is a wholesaler and retailer of yarn and craft made knitwear products. The new store features knitwear, yarn and knitting kits, and also has a dedicated space for knitting classes and other events. This woman-owned enterprise currently employs 6 people and supports the work of 10 craft knitters, most of them self-employed women.

Imported Foods Corporation

Imported Foods Corporation has had a long relationship with the BLDC. The company is a wholesale distributor of primarily specialty food products for restaurants, hotels, and other commercial entities in the Boston area. In the fall of 2017 they received their third round of financing from the BLDC. The $235,000 loan went to support the continued growth of the company. Since Sarah and Anthony Pompeo purchased Imported Foods in 2008, BLDC loan assistance has helped them to grow sales from $2 to $3 million per year. They now employ 8 people.

BLDC celebrates the financing of woman owned businesses

Over the past year, the Boston Local Development Corporation (BLDC), has closed over $800,000 in new loans. In celebration of International Women’s Day and Women’s History Month, the BLDC Board of Trustees and Staff are proud to note that all of the businesses that received financing are either owned or co-owned by Woman Entrepreneurs!