Case Study
ShermanLaw Negotiates New Market Tax Credits to Revitalize Major Shopping Plaza
In 1964, with the cooperation of Senator Jacob K. Javits and Mayor John W. Lindsay, Senator Robert F. Kennedy announced a seven point action plan for Brooklyn that would serve as a national model for community development, including formation of the Bedford Stuyvesant Renewal and Rehabilitation Corporation. The Corporation purchased an abandoned milk bottling plant in the heart of Bedford Stuyvesant to serve as its new corporate headquarters. Restoration Plaza was completed in 1972, with 300,000 square feet of commercial plaza, home to Restoration’s headquarters, the Billie Holiday Theatre, the Skylight Gallery and scores of local businesses, non-profits and government agencies.
When the Corporation renovated Restoration Plaza, ShermanLaw was engaged as its legal counsel for project development because of the firm’s broad experience and long association with community development throughout New York City. The restored facility will promote workforce development programs and small business opportunities, and it will substantially increase jobs and services for this high traffic “Town Center” section of Central Brooklyn.
ShermanLaw structured and negotiated the financing documents required for the Corporation to secure $ 15 million dollars in financing for renovation of Plaza. The financing consists of a $11.4 million short term bridge loan and a $4 million New Market Tax Credit (NMTC) investment which complemented its existing NYC Economic Development Corporation financing. ShermanLaw negotiated terms for the NMTC, which complimented the Corporation’s existing NYC Economic Development financing, advised the Corporation on the operational changes required to conform to the NMTC requirements and negotiated further guarantees to limit the liability of the Corporation.
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