The construction of a new $26 million, 54,000-square-foot health center, delayed for months because of the complexity of its financing, has begun in Tacoma’s Hilltop business district.
The building’s construction is being financed by a complicated combination of New Market Tax Credits and funds provided by private donors, the state, the City of Tacoma and several non-profit corporations whose mission is to develop new facilities in urban core neighborhoods.
Community Health Care Hilltop Health Center
The new Hilltop Regional Health Center at 1202 Martin Luther King Jr. Way will replace a small Community Health Care clinic that served the Hilltop and the near downtown Tacoma area for more than three decades.
The new three-story brick Community Health Care building will include medical and dental clinics, urgent care, radiology, pediatrics, internal medicine and obstetrics. More than 17,000 patients will be served at the clinic annually.
Community Health Care serves low-income and uninsured patients through a network of clinics in Pierce County.
“In a time of economic uncertainty, this innovative source of funding was a real boon to making sure our important health care facility would happen,” said David Flentge, president and chief executive officer of Community Health Care. “Without New Market Tax Credits raising the financing necessary for our new center at Martin Luther King Jr. Way and Ernest S. Brazill would have been difficult, to say the least.”
“The need for New Market Tax Credit financing is greater than ever during a slow economy, as funding gaps get larger and other sources of capital disappear,” said Matt Philpott, director of new markets, historic and renewable energy tax credit investments for U.S. Bancorp Community Development Corporation, the tax credit investment subsidiary of U.S. Bank.” U.S. Bank helped assemble the financing package.
Through the tax credit program Community Health Care was able to raise over $21 million of its $26 million capital goal.
Jim Walton, one of the co-chairs of Community Health Care’s capital campaign, says that with $5 million left to go, there are still opportunities to help underwrite this important project.
The architects for this project are Johnson Architecture and Planning and the general contractor is Abbott Construction. Construction is expected to be completed by October 2013.