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Katy Trail Health to utilize New Market Tax Credits in Warsaw

March 28, 2013

in Business

Katy Trail Community Health, 821 Westwood, partners with other organizations to build and operate Harbor Village in Warsaw. Harbor Village will be a central site for the organizations to coordinate care and provide a variety of health and wellness services Benton County. The Harbor Village project is a partnership between Katy Trail Community Health, Pathways Community Health, Friends of the Warsaw Senior Center, and Care Connection for Aging Services.

Sharing and coordinating resources results in fewer dollars spent and an ability to serve more people in Benton County. These partnerships have been instrumental in leveraging resources needed to fund the construction of the facility and will continue as the organizations implement programming.

Katy Trail Community Health will use New Markets Tax Credits to help finance the construction of it newest medical facility, Harbor Village in Warsaw. The $7.9 million transaction recently closed, bringing together a consortium of public and private entities to support Katy Trail Community Health as it expands services for Benton County. The development is being financed with more than $ 2.4 million of New Markets Tax Credit (NMTC) equity raised in partnership with Third National Bank and ¬¬¬Capital Fund.

“We are thankful that our community partners have helped us in securing funding so that we can continue to serve Benton County,” said Chris Stewart, CEO, Katy Trail Community Health. “This new facility will increase our capacity to serve the increasing population of seniors so that they will have a place to go to receive high quality care for medical, dental and behavioral healthcare.”

A new one story facility in Warsaw on North Dam Access Road will be constructed, the new facility will offer:

• 23,330 square foot facility that provides space for all three partners to provide services and flexible space for conversion to community meeting use.

• The building will house 6 medical exam rooms, 1 procedure room and 5 dental operatories for use by KTCH.

• In addition there will be 9 counseling rooms (plus a group meeting room) for use by Pathways.

• Care Connections will be able to offer the community an adult resource center, recreation/education areas including a computer lab and fitness center, a dining room for 200, café services and a fully equipped commercial kitchen.

New Markets Tax Credits were designed by Congress in 2000 to spur private sector investment into economically distressed areas. Developments awarded the tax credits sell them to private investors, giving the investor a 39 percent federal tax credit, while bringing much needed equity to support viable business opportunities in low-income communities that otherwise might not have sufficient capital to move forward.

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