News from City Hall
City Communications Office
City of Kansas City, Mo.
CONTACT: City Communications Office, 816-513-1356
FOR IMMEDIATE RELEASE: May 5, 2010
New Markets Tax Credit program delivers financing
to Truman Medical Centers
A community development entity (CDE) of the City of Kansas City, Missouri facilitated a $15 million New Markets Tax Credit transaction to provide business financing to Truman Medical Centers which has undergone a number of capital improvements at its Hospital Hill campus, including a new diabetes center, additional bed expansions, equipment purchases, and office improvements.
The Kansas City, Missouri Community Development CDE utilized $10 million of its New Markets Tax Credit allocation authority and Central Bank of Kansas City contributed $5 million in tax credit allocation authority. US Bank was the sole investor in the federal tax credits.
“Most people think of the New Markets Tax Credit program as primarily a real estate development financing tool, but it is also a great for-profit and not-for-profit business financing tool,” said Ruben Alonso III, New Markets Tax Credit Program Manager for the Kansas City, Missouri Community Development CDE. “New Markets Tax Credits provided Truman Medical Centers increased financial flexibility to continue operating at a high level, despite the significant investments that it has made and continues to make in its facilities.”
Truman Medical Centers, which is also the primary teaching hospital for the University of Missouri-Kansas City Schools of Medicine, Nursing, Dentistry, and Pharmacy, had nearly 600,000 patients seek outpatient treatment in 2008, including emergency room visits and mental health visits. As one of the busiest Level 1 trauma centers in Kansas City, Truman Medical Centers also serves as the primary safety net healthcare provider for the non-insured and underinsured residents of Kansas City and Jackson County. The Hospital Hill and Lakewood Campuses of Truman Medical Centers provided more than $92 million in uncompensated care, with about $73 million for services at the Hospital Hill Campus, more than any other single hospital in the State of Missouri and more than all of the hospitals in Jackson County combined.
"I am happy to see the City leveraging resources that not only help businesses continue to invest in our communities, but support valuable institutions like Truman Medical Centers so they can continue to provide critical services to our residents," said Councilmember Jan Marcason, 4th District, whose district is now home to two businesses that have benefited from the New Markets Tax Credit program.
In addition to Truman Medical Centers, the Reeves Wiedeman Company was the beneficiary of $5 million in New Markets Tax Credit facilitated financing, which it is using to help renovate the historic O.H. Dean building located at 3536 Main Street and converting it into their corporate headquarters as well as additional retail space.
For more information about the City of Kansas City, Missouri Community Development CDE and the New Markets Tax Credit Program, contact Ruben Alonso III, 816-513-1021 or email@example.com.