UC Health, Cincinnati’s academic health system, will utilize $41 million in New Markets Tax Credit financing to build a $60.5 million University of Cincinnati Gardner Neuroscience Institute clinical outpatient facility in a transaction announced by Ross, Sinclaire & Associates, LLC’s Structured Finance Group (RSA|SFG).
The 114,000-square-foot, four-story outpatient facility is under construction in Cincinnati's Uptown neighborhood near the intersection of Martin Luther King Drive and Eden Avenue. It will be one of the first dedicated facilities for treating neurologic and psychiatric disease in the United States. Scheduled to open in 2019, the UC Gardner Neuroscience Institute facility will house UC Health's outpatient neurologic care and patient activities while offering patients better access to advanced clinical medical trials as well as educational facilities for patients and their families.
The facility will provide a world-class home to the institute’s physicians, educators, researchers and patients while offering a variety of care that is not available elsewhere in the region, including specialized services for complex neurologic and psychiatric disease, illness and injuries.
RSA|SFG serving as advisor to UC Health, sourced $41 million of New Markets Tax Credits, brought the tax credit equity investor to the transaction and provided technical expertise to lead the transaction to a financial close.
"With the combination of generous philanthropic support and the veteran New Markets Tax Credit expertise of Ross, Sinclaire & Associates, the lives of neurologic and psychiatric patients in Greater Cincinnati, northern Kentucky and the surrounding region will be transformed for the better," said Rick Hinds, Executive Vice President and Chief Financial Officer of UC Health. "The impact of being able to access New Markets Tax Credits allocations to help build a new patient-centered, world class home for the University of Cincinnati Gardner Neuroscience Institute will be felt by our patients every day."
The New Markets Tax Credits transaction attracted tax credit allocation from the Uptown Consortium, Inc. ($20 million), Cincinnati Development Fund, Inc. ($8 million), Ohio Finance Fund ($8 million) and Capital One Community Renewal Fund ($5 million). Capital One, N.A. participated as the tax credit equity investor in the transaction.
"The New Markets Tax Credits obtained by UC Health leverage the philanthropic contributions made to the project, producing a financial impact that will not only bring the physical structure to fruition, but will also benefit UC Health’s operations and programming at the facility," said RSA|SFG Managing Director Matt Staarmann. "RSA is excited to be part of project that will deliver long-term impacts on how neurological care is provided in our region."
The New Markets Tax Credits program permits individual and corporate investors to receive a federal income tax credit for making equity investments in qualified Community Development Entities.
The project will significantly impact low-income persons, who experience a disproportionately higher rate of neurological and psychiatric disorders when compared to the general population.
"Given its location at the center of the Martin Luther King corridor, 22 highly distressed census tracts are contiguously connected to the project, making it conveniently accessible to nearly 65,000 low-income community residents through the region, allowing for better access to UC Gardner Neuroscience Institute’s services for low-income residents as a result,” said Alex Stillpass, RSA|SFG Director.
As the region’s academic health system, UC Health’s core mission is to provide comprehensive and compassionate care to meet the region’s most complex healthcare needs.
"As these complex healthcare needs increasingly compete for resources, it has taken generous philanthropic donors and New Markets Tax Credit allocations to leverage UC Health’s investment to build a leading treatment, research and teaching center for our patients with Parkinson’s disease, Alzheimer’s disease, stroke, epilepsy, brain tumors, multiple sclerosis, mood disorders, headaches, and other neurologic and psychiatric conditions," Hinds said.
“Ross Sinclaire understood UC Health’s unique and critical role in the community: our support for a number of health initiatives; our hospitals, institutes, and clinics; that we care for patients with chronic and complicated diseases; and that we are actively involved in training future generations of health care professionals," he said. "They understood UC Health’s need to allocate and leverage our healthcare dollars wisely across a wide spectrum of healthcare needs, and worked to successfully close one of the largest transactions of this New Markets Tax Credits cycle for the UC Gardner Neuroscience Institute. We are very grateful for their support.”
RSA Founder Murray Sinclaire, Jr., said the firm is "proud to be associated with UC Health and the fine work of the UC Gardner Neuroscience Institute."
"Our team works diligently every day to finance and to provide advice on important community projects such as this one," Sinclaire said.
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