Sullivan’s Grocery, a UB Community Development (UBCD) New Markets Tax Credit Loan & Investment Fund Success Story

UB Community Development, LLC (UBCD), a community development partner  of United Bank, announces $7.5 million allocated from the New Markets Tax Credit (NMTC) Loan & Investment Fund to renovate and expand Sullivan’s Grocery Stores in Mississippi.

All of the stores are located in food deserts, areas with limited access to affordable, nutritious food. Funds will be used to renovate, equip, and stock four existing Sullivan Grocery stores in New Hebron, Raleigh, Ruleville, and Forest, Mississippi. The funding will also be used to establish a new store in Brookhaven, Mississippi.

The predevelopment and construction associated with the projects is expected to create approximately 57 direct, full-time jobs. Once completed, the five stores will create an estimated 57 full-time permanent jobs and 97 part-time jobs in the next seven years. A portion of the funding will go to the development of a new 48,000 square foot store in Brookhaven. The total cost of building, equipping, and stocking the new store will be approximately $1.97 million. The four existing stores will be expanded, renovated, restocked and total more than 67,000 square feet.

Steve Sullivan, CEO of Sullivan’s Grocery said, “These funds will allow us to expand and renovate several existing stores in rural Mississippi. This is where we live, and we are thankful to be able to bring fresh foods to rural markets at an affordable price. We are especially excited about the opening of our new store in Brookhaven. The community has already turned out in support of having a locally owned grocery store in their neighborhood.”

These loans were originated through a partnership with Peoples Bank, a Mississippi-based Community Development Financial Institution (CDFI). Peoples Bank CEO, Dennis Ammann said, “Our partnership with United Bank is an excellent example of two community banks working together to improve the lives of the people in our neighborhoods; helping Sullivan’s Grocery improve and expand local access to fresh produce and meats is an important part of what CDFIs like Peoples & United Bank are all about.”

Sullivan’s Inc. is solely owned by President and CEO Steve Sullivan. With more than 40 years of experience in the grocery business, he is dedicated to his businesses and works full-time as a “hands on” manager. Sullivan’s Inc. currently has approximately 500 employees. Sullivan’s Inc. owns stores in Brookhaven, Bude, Flora, Forest, Hattiesburg, New Hebron, Raleigh, Ruleville, and Vicksburg, Mississippi, as well as Clinton, Amite, Kentwood, and Monroe, Louisiana.

About UB Community Development
UB Community Development’s strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, and more.

Since 2016, the U.S. Department of Treasury, through its New Markets Tax Credit Program, has awarded United Bancorporation of Alabama (OTC: UBAB), the parent corporation of United Bank and UBCD, $120 million in New Markets Tax Credit allocations. UBA, and subsequently UBCD, are the only community development entities (CDE) headquartered in Alabama to receive a NMTC allocation from Treasury in the last decade. This success was made possible largely because of United Bank’s designation as a Community Development Financial Institution (CDFI) and the organization’s unwavering commitment to its CDFI mission to bring positive and sustainable economic and quality-of-life improvements to underserved communities, not only in its traditional banking footprint, but throughout the entire states of Alabama and Florida.

Additionally, UBCD, as the community development management entity for UBA, manages a $40 million Community Facilities Lending Program, which provides accessible, low-cost capital to local government and non-profits in rural areas. Finally, UBCD also manages the $4 million Capital Magnet Fund Award that Treasury recently provided to United Bank. The CMF award requires UBCD, in conjunction with United Bank, to inject at least $40 million in capital to facilitate accessible, affordable and quality housing communities. Like the New Markets Tax Credit awards, UBCD is the only Alabama-based entity to receive and administer these programs.

Download the success story here.

Hamilton Homebuilders, a UB Community Development (UBCD) New Markets Tax Credit Success Story

UB Community Development, LLC (UBCD), a community development partner of United Bank, has provided $8 million in New Markets Tax Credit (NMTC) funding for Hamilton Homebuilders to update and reopen manufacturing facilities in Hamilton and Double Springs, Alabama.

Hamilton Homebuilders is a leading manufactured home builder committed to building homes with quality craftsmanship and modern comfort. The NMTC funding will be used to update, refurbish, and reopen two manufacturing locations.

The facility in Hamilton, AL was originally constructed in the early 1970s and was closed for over five years while the owner determined if it would be feasible to refurbish and reopen the facility in a manner to support its operations.

The NMTC funding will allow Hamilton Homebuilders to make the necessary investments in the facility to meet modern production requirements. Given the rural location and specialty nature of the equipment, traditional financing was not a viable option to complete the scope of the project. Without the NMTC funds, the company would have been unable to make the necessary investments in technology and infrastructure (sprinklers, ventilation, plumbing, and sewage) to bring the facility to an optimal working capacity.

The square footage of the Hamilton facility is 211,000 and the cost for updating and refurbishing will be $3.7 million. The Double Springs facility measures 158,300 square feet and the total cost of that project will be $4.1 million. Once the facilities are up and running, general production will require approximately 250 full-time employees. Three maintenance jobs, 10 production managers, eight administration managers, and six administrative positions will also be filled.

About UB Community Development
UB Community Development’s strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, and more.

Since 2016, the U.S. Department of Treasury, through its New Markets Tax Credit Program, has awarded United Bancorporation of Alabama (OTC: UBAB), the parent corporation of United Bank and UBCD, $120 million in New Markets Tax Credit allocations. UBA, and subsequently UBCD, are the only community development entities (CDE) headquartered in Alabama to receive a NMTC allocation from Treasury in the last decade. This success was made possible largely because of United Bank’s designation as a Community Development Financial Institution (CDFI) and the organization’s unwavering commitment to its CDFI mission to bring positive and sustainable economic and quality-of-life improvements to underserved communities, not only in its traditional banking footprint, but throughout the entire states of Alabama and Florida.

Additionally, UBCD, as the community development management entity for UBA, manages a $40 million Community Facilities Lending Program, which provides accessible, low-cost capital to local government and non-profits in rural areas. Finally, UBCD also manages the $4 million Capital Magnet Fund Award that Treasury recently provided to United Bank. The CMF award requires UBCD, in conjunction with United Bank, to inject at least $40 million in capital to facilitate accessible, affordable and quality housing communities. Like the New Markets Tax Credit awards, UBCD is the only Alabama-based entity to receive and administer these programs.

Download the success story here.

Carillon Oaks Assisted Living & Memory Care, a UB Community Development (UBCD) New Markets Tax Credit Success Story

UB Community Development, LLC (UBCD), a community development partner of United Bank, has provided $7 million in New Markets Tax Credit (NMTC) funding as part of a $13 million project to transform the historic Cleburne County High School, a National Historic Landmark, into Carillon Oaks, a state-of-the-art senior living facility.

The project is being developed by Mobile-based Lathan & Coleman. They worked to combine three incentive programs, Opportunity Zone, New Markets Tax Credit and Alabama’s Historic Rehabilitation Tax Credit to bring the much-needed senior living facility to Heflin. This project was the first in Alabama to combine all three programs.

Partner Jerry Lathan’s development background is in historic restoration, while Stuart Coleman’s has been in senior care. “This project was a natural fit for us,” Lathan said. “Typically, a rural town of Heflin’s size has no assisted living or memory care and families are often separated from their loved one by a drive of an hour or more. Bringing a high level of care to this town was particularly close to our hearts.”

Heflin Economic Development official Tanya Maloney said, “Small towns are often underserved when it comes to memory care — residents are often lucky to find any at all. The state limits the number of beds per county, and these beds will be the only ones for Cleburne County.” She added Carillon Oaks would provide a full spectrum of services with a keen focus on the social needs of residents.

“It’s not only a tremendous asset for this town, it’s a scalable model for other communities,” said Anoop Mishra, regional executive with the Federal Reserve Bank of Atlanta in Birmingham.

When the project is complete in 2020, the beloved Cleburne County High School will have 39 assisted-living beds and 16 beds in the memory care facility. It will feature a bistro, chapel, beauty salon and family gathering areas. The restored auditorium will provide public space for receptions and other events.

Around-the-clock care will include nurses and security. Management of medications and incontinence will be available as residents’ needs change. In the memory care cottage, residents will receive the highest level of attention from teams with a depth of experience in memory care service. Medication management, incontinence management and proactive care and wellness plans will be provided. The project is expected to create more than 40 new jobs.

“Community support has been incredible,” Coleman said. “It is what programs like these are all about—to bring this type of benefit to wonderful communities like Heflin.” Lathan & Coleman is also building a 48-bed Carillon Oaks Memory Care facility in Mobile.

About UB Community Development
UB Community Development’s strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, and more.

Since 2016, the U.S. Department of Treasury, through its New Markets Tax Credit Program, has awarded United Bancorporation of Alabama (OTC: UBAB), the parent corporation of United Bank and UBCD, $120 million in New Markets Tax Credit allocations. UBA, and subsequently UBCD, are the only community development entities (CDE) headquartered in Alabama to receive a NMTC allocation from Treasury in the last decade. This success was made possible largely because of United Bank’s designation as a Community Development Financial Institution (CDFI) and the organization’s unwavering commitment to its CDFI mission to bring positive and sustainable economic and quality-of-life improvements to underserved communities, not only in its traditional banking footprint, but throughout the entire states of Alabama and Florida.

Additionally, UBCD, as the community development management entity for UBA, manages a $40 million Community Facilities Lending Program, which provides accessible, low-cost capital to local government and non-profits in rural areas. Finally, UBCD also manages the $4 million Capital Magnet Fund Award that Treasury recently provided to United Bank. The CMF award requires UBCD, in conjunction with United Bank, to inject at least $40 million in capital to facilitate accessible, affordable and quality housing communities. Like the New Markets Tax Credit awards, UBCD is the only Alabama-based entity to receive and administer these programs.

Download the success story here.

Abbeville Fiber Sawmill, a UB Community Development (UBCD) Partnered Funding Success Story

UB Community Development, LLC (UBCD), a community development partner of United Bank, announces partnered funding for the new fiber sawmill in Abbeville, Alabama.

The mill is a state-of-the-art sawmill, featuring the latest technology in the industry and is located in the former West Point Stevens textile plant off U.S. Highway 431 and Alabama Highway 27. The mill is operated by Abbeville Fiber, a part of Great Southern Wood Preserving, Inc. It has the capacity to produce 200,000 feet a day of finished wood and will purchase an estimated $14 to $15 million of yellow pine timber annually from suppliers within a 50- mile radius of the plant.

The mill represents a $40 million investment, the largest ever in Henry County, and will employ up to 115 people at full production, which will include truck drivers. It will initially consume 40-45 truckloads of logs per day but can increase production by adding additional shifts. The first load of logs was received in early July from Charles Money Logging.

An additional $850,000 Community Development Block Grant awarded to the Henry County Commission will provide transportation construction assistance to ship lumber, timbers, and posts at the Abbeville Fiber plant. The mill is also expected to expand the need for timber in southeast Alabama resulting in additional jobs in the forest industry.

The Henry County Commission and the City of Abbeville also contributed $160,000 to the project.

“As we have seen during my administration, Alabama’s timber industry is at full throttle,” said Alabama Governor Kay Ivey. “It has been my experience that a big demand for wood is an indication of confidence in the economy, and that confidence leads to growth in housing and business in general. I am pleased to support this project to provide timber-industry jobs in Abbeville and Henry County.”

Great Southern Wood Preserving, Inc., based in Abbeville, Alabama, is a manufacturer of lumber products and distributor of building products servicing Do-It-Yourself retail home centers, pro dealers, and other retail building related and industrial segments. Founded in 1970, Great
Southern Wood has 14 plants located in Alabama, Arkansas, Florida, Georgia, Mississippi, Missouri, Louisiana, Maryland, Virginia, Pennsylvania, and Texas. The company, best known for its YellaWood® brand pressure treated pine, services a coverage area that stretches from the Florida Keys to Texas to Canada, an area that includes all or parts of 28 states and the District of Columbia.

About United Bank
United Bank is a $713,000,000 financial institution that has enjoyed 115 years of continuous service to Atmore, Alabama and surrounding communities. United Bank has offices in Atmore, Brewton, Daphne, East Brewton, Flomaton, Monroeville, Frisco City, Bay Minette, Foley, Lillian, Loxley, Magnolia Springs, Silver Hill, Spanish Fort, and Summerdale in Alabama. United Bank serves Santa Rosa County, Florida in Jay, Milton, and Pace. For more information about United Bank, please visit our website at www.unitedbank.com. Member FDIC.

About UB Community Development
UB Community Development’s strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, and more. For more information about UB Community Development, visit our website at www.UBCommunityDevelopment.com

Download the success story here.

Pine Belt Wood Products, LLC. Project New Markets Tax Credit Loan & Investment Funds Success Story

UB Community Development, LLC, a community development partner of United Bank, has provided $617,000 in New Markets Tax Credit (NMTC) loan and investment funds to facilitate a change in ownership of Pine Belt Wood Products, keeping the mill in operation and allowing it to add employees.

Pine Belt Wood Products is a 46-acre timber processing facility which purchases pole timber from local loggers, strips the bark from the poles and prepares them to be delivered to timber processing plants that treat and finish them into utility poles.

The NMTC funding will help keep the Pine Belt Wood Products mill in operation as it changes ownership. The company currently employs 391 and will add another five jobs after the ownership transition.

Since Hurricane Michael ravaged the Florida timber industry in 2018, Alabama timber plants have experienced an increase in demand for their poles from Florida. Keeping the Pine Belt Wood Products mill open will help Alabama processing plants meet the increased demand for poles while also saving Alabama loggers money on transportation costs as they are able to use a local facility for pole processing.

About UB Community Development

UB Community Development’s strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, and more.

Since 2016, the U.S. Department of Treasury, through its New Markets Tax Credit Program, has awarded United Bancorporation of Alabama (OTC: UBAB), the parent corporation of United Bank and UBCD, $120 million in New Markets Tax Credit allocations. UBA, and subsequently UBCD, are the only community development entities (CDE) headquartered in Alabama to receive a NMTC allocation from Treasury in the last decade. This success was made possible largely because of United Bank’s designation as a Community Development Financial Institution (CDFI) and the organization’s unwavering commitment to its CDFI mission to bring positive and sustainable economic and quality-of-life improvements to underserved communities, not only in its traditional banking footprint, but throughout the entire states of Alabama and Florida.

Additionally, UBCD, as the community development management entity for UBA, manages a $40 million Community Facilities Lending Program, which provides accessible, low-cost capital to local government and nonprofits in rural areas. Finally, UBCD also manages the $4 million Capital Magnet Fund Award that Treasury recently provided to United Bank. The CMF award requires UBCD, in conjunction with United Bank, to inject at least $40 million in capital to facilitate accessible, affordable and quality housing communities. Like the New Markets Tax Credit awards, UBCD is the only Alabama-based entity to receive and administer these programs.

Download the success story here.

HH&A Investments, LLC. Greenville Chevrolet Project New Markets Tax Credit Loan & Investment Funds Success Story

UB Community Development, LLC., a community development partner of United Bank, has provided $1.4MM in New Markets Tax Credit (NMTC) loan and investment funding for the expansion of Greenville Chevrolet in Greenville, Alabama.

Greenville Chevrolet, a family-owned business founded in 1928, is one of the top-performing General Motors dealerships in the region, consistently exceeding 200 percent of sales goals. To keep pace with the growth, the dealership needed to expand its offices, parking lot and show room as well as space for new and used car inventory. The additional space for used car inventory will provide significant opportunity for the dealership as it has struggled to keep enough inventory to meet the demand for used automobiles.

Once completed, the expansion will increase the number of employees from five to 25.

About UB Community Development

UB Community Development’s strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, and more.

Since 2016, the U.S. Department of Treasury, through its New Markets Tax Credit Program, has awarded United Bancorporation of Alabama(OTC: UBAB), the parent corporation of United Bank and UBCD, $120 million in New Markets Tax Credit allocations. UBA, and subsequently UBCD, are the only community development entities (CDE) headquartered in Alabama to receive a NMTC allocation from Treasury in the last decade. This success was made possible largely because of United Bank’s designation as a Community Development Financial Institution (CDFI) and the organization’s unwavering commitment to its CDFI mission to bring positive and sustainable economic and quality-of-life improvements to underserved communities, not only in its traditional banking footprint, but throughout the entire states of Alabama and Florida.

Additionally, UBCD, as the community development management entity for UBA, manages a $40 million Community Facilities Lending Program, which provides accessible, low-cost capital to local government and non-profits in rural areas. Finally, UBCD also manages the $4 million Capital Magnet Fund Award that Treasury recently provided to United Bank. The CMF award requires UBCD, in conjunction with United Bank, to inject at least $40 million in capital to facilitate accessible, affordable and quality housing communities. Like the New Markets Tax Credit awards, UBCD is the only Alabama-based entity to receive and administer these programs.

Download the success story here.