Mascoma uses $15M in New Markets Tax Credit to build new food service redistribution facility in TN
Vermont Business Magazine Mascoma Community Development (MCD) has announced the closing of $15 million in New Markets Tax Credit (NMTC) allocation to finance the construction and operation of a 177,000 square-foot food product distribution center for Dot Foods, Inc in Manchester, Tennessee.
MCD is a subsidiary of Mascoma Bank, based in West Lebanon, NH, with additional branches in Vermont.
The facility will allow Dot Foods to more than double its existing capacity in Tennessee, become the anchor tenant of a rural business park, and create more than 250 new, quality jobs.
“Dot Foods’ new facility will allow them to respond to market demand and expand support of their employees and the community,” states Michelle LeClair, Chief Investment Officer with Mascoma Community Development. “This project also closely aligns with the goals of local, regional, and state leaders who are actively working to attract industrial companies for the purpose of investment, job creation, and further catalytic development within a low-income community.”
MCD is a Community Development Entity established by Mascoma Bank which creates impactful jobs in highly distressed, low-income rural and minor-urban communities. MCD also targets downtown redevelopment projects which support revitalization and provide services to residents.
The Dot Foods project is expected to create 251 full-time equivalent (“FTE”) positions within the first three years of operation. All FTEs will have access to comprehensive benefits including health insurance, paid sick/vacation days, career advancement opportunities, and job training. It is estimated that 230 (92%) of the total jobs at the facility will be available to Low-Income Persons and 49 (20%) of total jobs will be available to Low-Income Community Residents. Upon achieving this target, Dot Foods will be one of the top 15 employers in Coffee County, Tennessee.
This Dot Foods location will be the company’s first to open with a Family Health Center onsite to provide convenient, low-cost medical care to employees and families that are covered on Dot Foods’ health insurance plan. Dot Foods demonstrates a history of supporting its employees and the communities where they live, work, and raise families. In addition to hiring from low-income communities, Dot Foods is dedicated to growing and enhancing employees’
skillsets by providing them with extensive job training. It actively participates in local schools and charitable giving, encourages volunteerism among employees, and has created the Tracy Family Foundation. Dot Foods funds scholarships for low-income individuals, sponsors residents for CDL truck driving training, and donates healthy foods to local food banks.
This project aligns with community needs in Coffee County, including attracting industrial companies for investment and job creation, with one of the target sites being Manchester Industrial Park, site of the new Dot Foods facility. Tennessee Department of Economic and Community Development (TNECD) Commissioner Bob Rolfe says, “Tennessee is uniquely positioned to provide companies with easy access to their markets around the globe. We thank Dot Foods for locating another food distribution center in Tennessee and are confident that Manchester and Coffee County will support this company’s future success.”
The new facility will enable food service redistribution where Dot Foods will consolidate healthy food and other food products and deliver to distributors nationwide. It will include offices and dry, refrigerated, and frozen warehouse space. Construction is anticipated to begin in quarter three of 2022 and operations aim to commence in quarter three of 2023.
Dot Foods CEO Joe Tracy shares, “We are happy to continue our long history of doing business in the state of Tennessee with the establishment of our Manchester distribution center and appreciate the NMTC financing support from Mascoma Community Development, Munistrategeis, and Capitol One. Access to talent is a key factor in our decision on where to build a Dot facility, and we are excited about welcoming many members of the Manchester and Coffee County communities and beyond into great careers as members of our Dot Foods and Dot Transportation families. Our partnership with the Tennessee College of Advanced Technology (TCAT) means citizens of these communities will have easy and low or no cost access to training to become truck drivers, a career path that can have a substantial positive financial impact on their lives.”
Capital One, N.A. is investing in New Markets Tax Credit equity to help finance this project.
MCD is pleased to report that this project has also made possible MCD’s grant of $75,000 to its CDFI (Community Development Financial Institutions) partner BrightBridge Capital, headquartered in Chattanooga, Tennessee. Grant proceeds will be used to support expansion of a nonprofit daycare center in Manchester, Tennessee. The existing, long-term daycare would like to expand to a new facility that could accommodate double their capacity from 33 to 65 children and allow for multiple shifts. Currently, 25% of children enrolled are eligible for state financial assistance. By providing safe childcare at a rate that is half the cost of area for-profit daycare, this daycare provides support for area workers that are most economically challenged. MCD takes great pride in supporting organizations and programs that strengthen the communities they serve. MCD commends the important work of BrightBridge Capital, and all CDFIs, and is pleased to support these efforts with this grant.
About Mascoma Community Development MCD was awarded the NMTC Allocation from the Community Development Financial Institutions Fund (CDFI Fund), a branch of the U.S. Treasury department. Using its tax credit allocation, Mascoma seeks to provide low-cost, flexible financing to businesses throughout the northeastern United States. With its NMTC Allocation, MCD emphasizes creating impactful jobs in highly distressed low-income communities nationally. MCD is a wholly owned subsidiary of Mascoma Bank.
About Mascoma Bank Mascoma Bank is a $2.7 billion mutual community bank and Certified B Corporation® with 28 branches and two loan offices throughout Northern New England and is the controlling entity to Mascoma Community Development. The bank has a 123-year history of serving communities and businesses primarily in rural and minor-urban areas.
MANCHESTER, TN (OCTOBER 24, 2022) – Mascoma Community Development www.mascomabank.com