- Community Development
Let’s take a look at what we’ve done in the past:
Magoffin County High School
Magoffin County – among the 50 poorest counties in America (2009-2013 ACS) – was hit by an EF3 tornado in Spring 2012 that impacted the county seat, Salyersville, and surrounding areas. The county school system experienced the single largest property loss in the history of the state. Insurance coverage was inadequate to replace the school buildings, and given the high poverty and low property values in the county, property tax receipts were insufficient to cover market-rate or other debt service to meet the financing gap. CV worked with the community, school officials and a second NMTC allocatee to structure a $20M investment (CV, $10M); the NMTCs helped finance a new academic building and health/wellness center. The facilities are enabling the district to retain dozens of jobs, and the construction is creating 200 FTE jobs which will last 16+ months
LexTran Bus Station
CV’s $9M QEI in the Transit Authority of Lexington (LexTran) is financing the construction of an administrative and maintenance facility, a new bus fueling and wash facility, and a parking lot for the bus fleet. The project is creating or retaining over 480 direct jobs and 265 indirect jobs. In addition to input from the community at large, CV worked with Lexington/Fayette Urban County Government council members – who represent LIPs in the LICs impacted – and who were extensively involved and extremely supportive of the redevelopment. Stakeholder engagement was critical: LexTran makes approximately 15,000 bus trips per day, and based on surveys, 68% of riders have annual household incomes of less than $20,000 per year. Likewise, numerous businesses in the LIC will benefit from daily expenditures by the 200 LexTran employees working at the new facility.
Pikeville College: School of Osteopathic Medicine
With a 33.5% poverty rate and a median family income of only 64.2% of the national average, Pike County is an ARC county that is considered medically underserved.
The vision of the Pikeville College School of Osteopathic Medicine (PCSOM) was to provide economic opportunity, health care access, and jobs for its residents. CV was the first CDE to commit to the project for $10,000,000 in allocation. Pikeville College is the leverage lender to the QALICB. The college received a $26.5 million loan from the USDA Rural Development and added $1.5 million of college funds to the leverage. CV’s NMTC investment lowered PCSOM’s debt burden, allowing the school to expand its class size.
• Enrollment numbers increased from 75 medical students to 135, reaching capacity
• At PSCOM, students are trained to become primary care physicians with emphasis on providing preventive health care.
• The college estimates that in addition to the $40,000 annual tuition, students provide $20,000 to $25,000 in revenue to the community, annually, for apartments, food, clothing and local services. Tuition and living expenses alone add approximately $8,500,000 to the local economy each year.
• PSCOM has graduated over 800 physicians with more than 60% going to work in medically underserved areas of Appalachia.
• According to the economic impact study by Capital Access, from 2019-2023 there will be 182 new physicians, which will ease the rural physician shortage and generate a total economic output of $716,419,786 and create 1,806 future jobs (nursing, pharmaceutical, home health, and related support) in severely economically distressed, low-income communities.
• The project has created high quality jobs for LIC residents and LIPs with wages substantially above the area’s living wage. PCSOM offers all permanent employees a competitive benefits package including employer-paid premiums at 80%, 401(k) plan and an active defined benefit plan.