New Markets Tax Credit Program Helps Columbia Hotel Come to Life
NEW MARKETS TAX CREDIT PROGRAM HELPS COLUMBIA HOTEL COME TO LIFE
The Broadway Columbia opens creating more than 140 jobs and focuses on local culture.
COLUMBIA, Mo., April 3rd, 2014 – Today is a big day in the City of Columbia as they announce the Grand Opening of The Broadway Columbia, a DoubleTree by Hilton. The project, which has been four years in the making for entrepreneur David Parmley was supported by a handful of investors led by Advantage Capital Partners, a leading growth capital and small business finance firm, along with Midland States Bank and Carrollton Bank.
In 2010, David Parmley saw a great opportunity to transform what had been a run-down hotel that diminished the eastern entrance of downtown Columbia into a striking, first-class hotel. Due to the great recession, Mr. Parmley struggled to find the necessary funding to get the project started.
“I was turned down 20 different times before I was able to find the financing needed to make this dream a reality,” said Mr. Parmley. “Every local financial institution I spoke to was supportive but given the banking environment, they just couldn’t help me. Thanks to Advantage Capital Partners and the patient capital they were able to provide through the Missouri New Markets program we are here today to celebrate the Grand Opening of The Broadway Columbia.”
Through the federal and Missouri New Markets Tax Credit programs, Advantage Capital Partners was able to provide Mr. Parmley with $3.8 million in patient capital that attracted an additional $16 million to the project. New Markets policy is designed to stimulate and strengthen economic growth in communities underserved by traditional sources of capital.
“The Broadway Hotel is a particularly unique deal for us as we were able to finance this new business with New Markets funds originally raised in connection with another successful project,” said Louis Dubuque, a managing director at Advantage Capital Partners. “Due to the early repayment from this earlier success, we were able to reinvest those New Markets funds and create an additional 140 jobs in Columbia at no additional cost to the taxpayer.”
The construction of this hotel has had a large impact on the community by spurring additional construction in the area. Adjacent to the hotel, several other projects have followed in the Broadway’s footsteps including a $12 million parking garage built to service the hotel and other local businesses. Ideally situated downtown, the Broadway Hotel accommodates guests arriving from the Columbia Regional Airport who desire a short walk from the hotel to the University of Missouri, Stephens College and Columbia College as well as a number of shops, art and film venues, restaurants and clubs.
Through hard work and tenacity, entrepreneur David Parmley has turned his vision into the reality of a LEED Certified hotel offering 114-rooms, local artwork and fine dining along with panoramic views of the city from their rooftop bar. With the help of the Missouri New Markets program, he had the funding needed for the redevelopment of the site and construction of this new hotel which has spurred economic growth and more importantly created 140 jobs while giving downtown Columbia new life and a grand new entrance from the east.
About Advantage Capital Partners
Advantage Capital Partners is a leading growth capital and small business finance firm focused on providing growth capital and other investments supporting state and local economic development efforts. The firm’s typical forms of investment include venture, expansion equity, mezzanine financing, senior and subordinated loans and government-guaranteed lending. With offices and partners in New Orleans, St. Louis, Chicago and other U.S. cities, Advantage Capital has invested more than $1.6 billion since 1992. The firm invests in small businesses across a wide range of industries that are located in geographic areas underserved by traditional sources of capital.
About the federal New Markets Tax Credit program
The federal New Markets Tax Credit program, administered by the U.S. Department of the Treasury, encourages private-sector investment in economically distressed communities through tax incentives. In a highly competitive allocation procedure, the Treasury Department awards the tax credits based on applications submitted for each round. Advantage has participated in the New Markets program since 2003, raising private capital for investment in low-income communities. These investments have spurred economic growth through innovative business ventures and job creation throughout the United States.
About the Missouri New Markets Development program
Enacted in 2007, the Missouri New Markets Development program encourages investment in promising small businesses located in distressed communities throughout the state. The program enables up to $312.5 million of capital investment in Missouri’s small businesses. The state program attracts investment in low-income communities through a state tax credit modeled after the federal New Markets Tax Credit. The goal of the program is to attract large, long-term investors to Missouri’s low-income communities, promoting new expansion, creating new job opportunities and building on existing growth in the state.