Locus allocated New Markets Tax Credits to enable U.S. Bank investment in a grocery store and an adult high school in Northwest Roanoke.
Roanoke, VA – Goodwill Industries of the Valleys (Goodwill) has secured a $13 million New Markets Tax Credits (NMTC) allocation to finance the development of a grocery store and an adult high school in Northwest Roanoke. The project, which is embedded in a larger development named Melrose Plaza, will address critical gaps in food access and adult education for a historically disinvested community and its residents. The NMTC allocation from Locus, a Virginia community development financial institution (CDFI), unlocked critical investment from U.S. Bank to support the project. Goodwill also received a loan from First Citizens Bank and a Federal American Rescue Plan Act (ARPA) grant from the City of Roanoke to cover development costs.
The Market on Melrose is a full-service grocery store providing access to affordable, healthy food for over 19,000 residents who currently experience food insecurity. The store offers fresh, quality products, affordable prices, a clean and safe facility, and free nutritional education. The Market aims to increase local employment opportunities, improve nutritional habits, and education surrounding healthy eating.
The Excel Center® will be a free public high school for adults, making education more accessible. Building on the successes of the Melrose Library next door, the teams will partner to create a climate of lifelong learning and community enrichment. Students at the Excel Center will be able to earn a state- recognized high school diploma, plus credentials and certificates, all designed to prepare residents for in-demand jobs. Along with accelerated courses and job placement services, the Excel Center will provide childcare, transportation services, and assistance navigating secondary education.
Goodwill worked with Brian Wishneff & Associates (BW&A), a Roanoke-based consulting firm with a national footprint, to secure the $13M of NMTC allocation from Locus and corresponding investment from U.S. Bank.
Ninety percent of people living in the surrounding community are considered low-income. To ensure affordability, the Market at Melrose accepts SNAP users and is enrolling in the Virginia Fresh Match program. Combined, the Market and Excel Center will create 60 full time jobs, with a strong priority on hiring community residents.
The development will be powered primarily by solar energy, with a solar array generating 90% of the building’s onsite electricity needs and producing 742 megawatt-hours of electricity annually.
“This collaboration represents a transformative investment in the future of Northwest Roanoke,” said Jackson Green, Chief Financial & Compliance Officer for Goodwill Industries of the Valleys. “This NMTC allocation from Locus and investment from U. S. Bank provides a net benefit of approximately $2 million for our Melrose Plaza construction costs. By expanding access to fresh food through the Market on Melrose grocery store and providing educational opportunities through the Excel Center®, a tuition-free adult high school, we are addressing critical needs and creating pathways to prosperity. We’re grateful to Locus and U.S. Bank for believing in the power of place-based investment and for helping us build stronger, healthier communities.”
“This project is perfectly aligned with the community impact Locus hopes to have,” said Clyde Cornett, Interim CEO and CFO of Locus, which is based in Richmond and serves the entire Commonwealth. “We applaud Goodwill’s collaboration with Roanoke nonprofits and other partners to ensure this project directly addresses opportunities to enhance the quality of life for Northwest Roanoke residents.” Locus worked with advisory tax and assurance and national NMTC consulting firm Baker Tilly to source and provide due diligence for the transaction.
“Having worked with the NMTC program for nearly 20 years, this is undoubtedly the most rewarding project I have had the privilege to be involved with,” said Adam Markwood, Director of Investments at BW&A. “Not only is it in my hometown, but the Melrose Plaza is among the highest impact and unique projects I’ve had the opportunity to work on. Not to mention that GIV is an extremely sophisticated organization, which made all of our jobs a lot easier.”
“We believe everyone deserves to live in a thriving community with access to opportunity,” said Steve Kramer, business development director of New Markets and Historic Tax Credits for U.S. Bancorp Impact Finance, the community development financing subsidiary of U.S. Bank. “Melrose Plaza – bringing access to fresh food, jobs and continued adult education through the Excel Center® – is exactly the type of project we look to support through our NMTC investments. We’re proud to invest in this project, which will have a lasting impact on the Roanoke community.”
The Market on Melrose opened in November. Melrose Plaza, which will include the Excel Center®, Wellness on Melrose, and a common space area, will open late summer.
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About Goodwill Industries of the Valleys
Goodwill Industries of the Valleys serves 35 counties and 14 cities throughout Central, Southwest and Southside Virginia. Our vision of eliminating poverty is fueled by our mission of empowering individuals, strengthening families and inspiring communities. Your donations and shopping allow Goodwill to provide skills training, job placement, and support services to help people achieve their fullest potential. Visit goodwillvalleys.com for more information.
About Melrose Plaza
Melrose Plaza is a first-of-its-kind resource center and cultural hub located in Northwest Roanoke, a community previously decimated by urban renewal. Melrose Plaza aims to rejuvenate the community by addressing health disparities, educational opportunities, financial empowerment, and access to affordable healthy foods. The four anchor initiatives of Melrose Plaza will provide jobs and resources to uplift the entire community.
About Locus
Locus (formerly Virginia Community Capital) is a $412 million nonprofit and parent organization for a family of social enterprises, which includes Locus Bank, Locus Impact Fund, Locus Capital, and the Community Investment Guarantee Pool, or CIGP. The mission of Locus is to create access to capital by developing community partnerships and innovative tools that tackle systemic challenges and advance opportunities. Locus employs solutions including lending, banking, impact-driven programs, place-based investments, and strategic consulting and work with each community to build investment strategies that lift their assets and meet their unique needs. To learn more, visit locusimpact.org.
About Brian Wishneff & Associates
Brian Wishneff & Associates (BW&A) is a full-service real estate consulting and development firm that specializes in the finance and operations of tax credit enhanced development projects throughout the U.S. BW&A has served a myriad of clients over the last 30 years ranging from non-profit organizations to universities, business owners, housing authorities, municipalities, IDAs, for-profit developers, and many other entities in a variety of industry segments. Focusing most of our work on high-impact incentive programs such as Historic, New Market, Low-Income and Renewable Energy Tax Credits, BW&A has been able to secure over $950 million of equity for our clients since our inception.
