MoFi finances hotel as part of Billings revitalization
With the help of MoFi and the New Markets Tax Credit (NMTC) Program, the new Home2 Suites by Hilton has opened on Seventh Avenue North in Billings. The Home2 Suites by Hilton, which was developed by JWT Capital LLC and is managed by Lodging Dynamics Hospitality Group, offers 95 suites with fully equipped kitchens and modular furniture. Through the NMTC Program, MoFi provided just over $3.4 million in tax credit equity toward the $13.8 million project.
The extended-stay Home2 Suites by Hilton in Billings – the first one in Montana – offers an indoor saline pool, outdoor fire pit and barbecue grill area, 24-hour business center, Spin2 Cycle combined laundry/fitness area, Home2 Market for grab-and-go items, Inspired Table complimentary breakfast, internet access and community spaces. It is also pet-friendly.
MoFi uses NMTCs to finance business startups and facilities expansions that generate quality jobs and other economic benefits. MoFi has also used the tax credits to finance community facilities that serve the needs of low-income Montanans.
Wide support for New Markets Tax Credits
U.S. Sen. Steve Daines has been supportive of the NMTC Program for years and would like to see it used more in Montana.
“The New Markets Tax Credit (NMTC) is a proven vehicle to spur private development, create good paying jobs and increase economic opportunity,” Daines said. “Through the NMTC and the hard work by the MoFi, we are celebrating the creation of more good-paying jobs in Billings.”
“We work with banks to turn the federal tax credits into cash and then use the money to invest in businesses that will have a profound effect on areas that need revitalization,” said Dave Glaser, MoFi’s President. “In the case of the Home2 Suites, we are very excited to have catalyzed such a large investment in downtown Billings.”
The Home2 Suites by Hilton brought 110 construction jobs and 18 permanent jobs to Billings. But the hotel’s impact goes well beyond jobs. The Home2 Suites is expected to be an important part of the revitalization of the downtown area, and of a key business and leisure market. The new Home2 Suites is located across the street from two regional hospitals and associated clinics and surgery centers, is two miles from Billings Logan International Airport, a short walk from Dehler Park and downtown shopping and dining options, and minutes from Montana State University Billings. Find out more about the project here.
In November, MoFi received a $90 million NMTC allocation – the largest in its history – for projects in Montana and Idaho. Since 2009, MoFi has provided $322 million in tax credits
to fund 26 projects in the two states.
Altogether, the projects MoFi has funded with New Markets Tax Credits have created more than 2,300 permanent, quality jobs and more than 2,800 construction jobs, and have served the needs of over 19,000 low-income people.
In the coming year, MoFi is looking for high-impact projects greater than $4 million in size with a gap in financing to fund with its new NMTC allocation.
Products Used: New Markets Tax Credits