At its spring meeting on May 8, LeMay’s Board of Directors approved a financing plan and elected to move forward to prepare for an anticipated fall ground breaking for construction of the new LeMay Car Museum in Tacoma.
The Board made the decision to move forward based on a review of the Museum’s funding plan. The plan includes:
— gifts and pledges received to date in the Museum’s $58 million campaign;
— a $3.5 million loan from the U.S. Department of Housing and Urban Development’s Section 108 Program;
— and the anticipated granting of a $4 million in New Market Tax Credits.
“The Board anticipates that we will secure these components of our financing in the next 30 to 60 days and, at that time, commit to begin construction,” said Building Committee Chairman Burt Richmond. Richmond, who along with Board member Paul Miller and Architect Alan Grant are authorized to complete negotiation of the construction contract, added that construction bids are on target with projections.
“The Board’s approval of our financing plan is a big step in a long anticipated process. I am very excited,” said Finance Chairman Karl Anderson.
President and CEO David Madeira expressed his gratitude to the Board for their strong efforts in developing the plan and supporting the Museum saying, “This approval is great news for the Museum, its supporters and for the City of Tacoma. We will present our plan to the City and begin the process of closing on the land at meetings this week. The approval also enables us to launch our regional ‘Race to the Finish’ campaign to support the Museum through the anticipated 15 month construction process.”
The HUD loan program is a federally-subsidized, low interest loan that stimulates urban development. The Museum will have up to seven years to repay the loan.
The New Markets Tax Credit Program permits taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities. The credit is claimed over a seven-year credit allowance period.