Montana Community Development Corporation Receives Top Honors for Stinger Welding Project in Libby, Montana

The Montana Community Development Corporation http://www.mtcdc.org received the top award among community development financial institutions across the country for best use of tax credits for the Stinger Welding http://www.deckjoint.com/ project in Libby Montana.

Montana CDC’s $17 million Stinger Welding expansion project in Libby, Montana received the top award for best use of New Markets Tax Credits among projects from across the country. The award was presented to Montana CDC by the Novogradac Community Development Foundation during its annual New Markets Tax Credit Conference in Chicago last week.

Novogradac & Company LLP is one of the leading New Markets Tax Credit accounting firms in the nation. The Libby project won the top award for Operating Business of the Year. The award recognizes Montana CDC’s vision and outstanding contributions in the field of community development. "Truly representative of some of the best the industry has to offer, [Montana CDC and other award winners] are testaments to the strength and caliber of all involved in the
New Markets Tax Credit program," says Michael J. Novogradac, managing partner of the Novogradac & Company LLP.

Along with the significant economic and social impact to the community of Libby, the award celebrates the creative collaboration and financial innovation that made the project possible. Carl Douglas, owner of Stinger Welding, had been working with local and state entities to put a financing package together. When recession-related lending constraints threatened to derail the project, Montana CDC stepped in with the tax credits and a tax credit investor willing to invest in Libby.

The tax credit investor for the Libby project was the Urban Investment Group at Goldman Sachs. Montana CDC first sat down with Goldman at Senator Max Baucus’ Butte Economic Summit last year. Goldman’s analysis of the Libby project confirmed what people in Libby already knew – that the skilled and dedicated workforce in Libby would be a huge asset for a new industrial employer in their community.

Since the deal closed in July, Stinger has put 40 people to work, bringing total employment to 86, with plans to hire more. Eventually, Stinger will employ one out of ten people in Libby. The catalytic effect of Stinger’s investment in Libby includes ancillary job creation, an increase in local spending, and tax revenues to improve infrastructure and social services. It also serves as an example for additional private investment in Libby. It is exactly this type of impact that the tax credit program is designed to create and the reason the Stinger project was singled out for a top award.

"My hat goes off to Montana CDC for helping businesses create jobs in Montana by using the New Markets Tax Credit program. This national recognition is one more way we can spread the word that Montana is a great place to invest and do business," said Senator Max Baucus. "The New Markets Tax Credit program is a proven success in Montana which is why I fought so hard to make sure rural areas could access this important business tool."

Montana CDC President Dave Glaser was pleased to use the financing tool on such an important community asset for Libby and a project that so many had supported. "Montana CDC is honored by the Award and grateful to all of the people that made it possible; Senator
Max Baucus who made this financing tool applicable in rural states, our partners on this project, Stinger Welding and Goldman Sachs, the Kootenai River Development Council, the Montana Department of Commerce, Lincoln County, Lincoln County Port Authority and the City of Libby who worked together to lay the groundwork for this project."

About MCDC:

The MCDC mission is to provide business financing that can transform the lives of individuals and strengthen community prosperity. Since 1986, MCDC has served thousands of entrepreneurs with loans, consulting and training. MCDC has lent more than $25 million to over 400 businesses, and has now funded $64.5 million in New Markets Tax Credits projects in low-income areas of Montana. With its financing and consulting tools, MCDC helps business owners grow their companies, sustain their local communities and provide jobs throughout Montana.

About the Novogradac Community Development Foundation:

The Novogradac Community Development Foundation (NCDF) is a not-for-profit entity that addresses the issues of community and economic development, housing and the preservation of America’s neighborhoods. The NCDF fosters the development of knowledge, supports beneficial public policy, and disseminates community development information in its endeavors to establish positive change in the nation’s communities.

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BAUCUS: MONTANA PROJECT RECEIVES NATIONAL HONORS

Senator Applauds Partnership Using Key Tax Credits to Create Montana Jobs

Montana’s senior U.S. Senator Max Baucus applauded Montana Community Development Corporation for earning a top national award for its partnership with Stinger Welding in Libby.

Montana CDC was honored as Operating Business of the Year from the Novogradac Community Development Foundation for best use of New Markets Tax Credits in the country.

"My hat goes off to Montana CDC for helping businesses create jobs in Montana by using the New Markets Tax Credit program. This national recognition is one more way we can spread the word that Montana is a great place to invest and do business,” said Baucus. “The New Markets Tax Credit program is a proven success in Montana which is why I fought so hard to make sure rural areas could access this important business tool.”

“Montana CDC is so pleased to be able to bring this financing to as fine a community as Libby. We are honored by the award and grateful to Senator Baucus and all of the people that made it possible including everyone at Stinger Welding, the Urban Investment Group at Goldman Sachs, the Kootenai River Development Council, the Montana Department of Commerce, Lincoln County, Lincoln County Port Authority and the City of Libby. This was a great example of diverse community groups working together to build an important community asset,” said Dave Glaser, Montana Community Development Corporation President.

As Chairman of the Senate Finance Committee, Baucus fought to ensure that rural communities get their share of the New Markets Tax Credits program. When the program faced uncertainty at the end of last year, Baucus again fought to make sure it was included in the Bipartisan Tax Cut Compromise http://baucus.senate.gov/?p=general&id=77 signed into law December 17, 2010.

Through his Montana Jobs Economic Engine Initiative http://baucus.senate.gov/?p=press_release&id=724 , Baucus is working to elevate the profile of Montana businesses that are finding innovative ways to grow, create jobs and move forward during challenging economic times. He recently highlighted Stinger Welding http://baucus.senate.gov/?p=press_release&id=683 as an Economic Engine, recognizing that the company is currently looking to hire an additional 50 workers on top of providing 86 jobs in Lincoln County which is facing the state’s 2nd highest unemployment rate.

More information about the Novogradac Community Development Foundation award is available: HERE http://www.novoco.com/new_markets/ncdf_awards/2011/qlici_op_business.php