July 23, 2020
150 New Jobs Coming to South Dallas as Eatery Essentials Closes $19 Million in NMTC Financing for Foodservice Container Plant
Latest Texas Investment by National New Markets Fund Will Bring New Opportunity to Severely Distressed Community
Dallas, Texas – Eatery Essentials, Inc., a US sister company to Taiwan-based Vigour Pak, today announced that it has closed $19 million in NMTC (New Markets Tax Credit) financing to develop its U.S. headquarters and manufacturing plant in South Dallas. The 400,000 square foot facility will create and repatriate an estimated 150 permanent full-time jobs over the next few years.
The new facility qualified for the federal NMTC program because it is in a highly distressed census tract with a 45.5 percent poverty rate (nearly four times the national rate) and a 19.5 percent unemployment rate (more than five times the national rate).
“The $19 million tax credit allocation from National New Markets Fund will enable us to launch our new facility and manufacture products here in the U.S.,” said Eatery Essentials CEO Albert Hsieh. ”NMTCs are the key to making this transformative project a reality.”
The new plant will produce recycled plastic PET (polyethylene terephthalate) containers for foodservice and food processing companies, supermarkets and convenience stores.
NMTC financing is provided by Los Angeles-based National New Markets Fund, which has now invested in a total of eight projects across Texas totaling $135.7 million in NMTC allocation. In addition, NNMF’s sister American South Real Estate Fund (ASREF) invested $1.75 million in equity capital in the nearby Lancaster Road office project in South Dallas.
“This investment will bring much-needed revitalization to South Dallas,” said National New Markets Fund President Deborah La Franchi. “The new Eatery Essentials headquarters and manufacturing facility will create quality jobs in an area suffering from high poverty and unemployment.”
Eatery Essentials will use the $19 million in funding for equipment, raw materials and start-up operational expenses. The company will work with the Dallas County Community College District, the State of Texas and local agencies to provide workers with customized training.
National New Markets Fund is the sole community development entity (CDE) for the project. U.S. Bank serves as the tax credit investor, providing $6.1 million in tax credit equity.
“U.S. Bank is proud to help Eatery Essentials launch its U.S. headquarters and manufacturing operations in South Dallas,” said Ashley Gebhard, an NMTC project manager at U.S. Bancorp Community Development Corporation, the tax credit and community investment subsidiary of U.S. Bank. “Investing in projects that create skilled, well-paying jobs helps individuals achieve financial stability and benefits the entire community.”
About the U.S. Treasury Department’s New Markets Tax Credit (NMTC) Program
New Markets Tax Credits (NMTCs) were established by Congress in 2000 to stimulate investment and economic growth in designated low-income communities. They raise investor capital and leverage public and private funding to provide borrowers with financing in the form of favorable rates and flexible below-market terms. The NMTC Program is administered by the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund).
About Eatery Essentials
Eatery Essentials is the U.S. subsidiary of Vigour Pak, a state-of-the art manufacturer of paper and plastic cups and containers in Taiwan. As the exclusive North American sales and marketing arm for Vigour Pak, Eatery Essentials is focused on providing high quality, competitively priced paper and plastic foodservice disposables to the following segments: Foodservice, Food Processors, Supermarkets and C-Stores. More information is available at https://eateryessentials.com/.
About National New Markets Fund
National New Markets Fund, LLC invests in projects that foster job creation and overall economic/social development in targeted low-income communities nationwide, including those hit especially hard by the loss of manufacturing jobs, natural disasters and other macroeconomic factors. To date, it has received $542 million in New Markets Tax Credit (NMTC) allocation from the U.S. Treasury’s CDFI (Community Development Financial Institutions) Fund. It was launched in 2005 as a partnership between Los Angeles-based Strategic Development Solutions (SDS) and Boston-based Economic Development International. More information about National New Markets Fund is available at https://www.sdsgroup.com/funds/national-new-markets-fund. Information about its sister American South Real Estate Fund is available at https://asref.com/.
About U.S. Bancorp Community Development CorporationWith $32 billion in managed assets as of December 31, 2019, U.S. Bancorp Community Development Corporation — a subsidiary of U.S. Bank — provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. USBCDC’s commitments provide capital investment to areas that need it the most and contribute to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable and market-rate homes, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities. Visit USBCDC on the web at www.usbank.com/cdc.