Quick Facts

Project Name
River District Tower
CDE
Danville, Virginia CDE (DVCDE), Inc.
Total Development Cost
$25,200,000
DVCDE ALLOCATION
$20,000,000
Location
109 Main Street
Danville, VA
NMTC Consultant
taxadvantagegroup, llc
Project Sponsor
River District Development, LLC
Square Footage
122,027
Leveraged Lender
Carter Bank & Trust
NMTC Investor
Carter Bank & Trust
Permanent Jobs
85 direct
Construction Jobs
45 direct
Low-Income Community
Poverty Rate 35.4%
MFI: 30.05%
Federally-Designated Medically Underserved Area
State EZ
Financing Complete
September 2015

River District Tower


Danville, VA

Project

The City of Danville, Virginia was founded in 1793 and chartered in 1830. Like so many other manufacturing areas that have lost their traditional industries, the area has its challenges. Specifically, when Dan River Mills, the area’s longtime textile giant, closed its doors in 2006, it lost a business that at one time employed 12,000 people. The company left town and its most visible structure, the Dan River Research Building, remained vacant for many years. The NMTC project is the renovation of the Research Building to become River District Tower, a mixed-use medical office facility housing two primary medical tenants, among others. Danville Orthopedic Clinic, occupying two floors of the facility, provides for the diagnosis and treatment of disorders and injuries to bones, joints, tendons, muscles, ligaments, and nerves; and Danville Regional Medical Center, which occupies one floor, will serve as an Accountable Care Hub, providing the community convenient access to a wide variety of health services.

The project is part of the City of Danville’s River District Master Plan. The Plan notes that from 2007 to 2010, the City of Danville experienced an 8 percent decrease in population and a 7 percent decrease in households. However, the River District has successfully attracted businesses and increased employee volume, and is becoming an important node for the area. A specific recommendation was made to redevelop the Research Building as a catalyst project to support quality jobs in the community. During creation of the Plan, hundreds of residents and stakeholders gave input on their vision for the future. The process included two public meetings and a live webinar. In total, 30 stakeholder interviews were conducted, 12 property owner discussions were completed, and five market segments were evaluated. DVCDE’s investment in River District Tower caused the Plan’s primary catalyst project to move forward.

The Financing

With total project costs of nearly $25.2 million, DVCDE’s $20 million NMTC investment funded the majority of the project. The City of Danville worked with the project Sponsor, a local investor group, and its local lender for a five-year period to identify and secure numerous sources of funding including Federal and State Historic Tax Credits. In addition, the City of Danville, through its Industrial Development Authority (IDA), provided a parking solution to reduce the cost of the investment. The IDA will lease the Parking Facility to the project Sponsor for a nominal rate and a specified term, at which point the project Sponsor may purchase the facility. Without DVCDE’s patient capital this historic renovation would not have occurred, as all other financing opportunities had been exhausted.

“The (development) is preserving the original building of Danville’s largest historic employer, which is important for me. I love adaptive reuse.” – Linwood Wright, Consultant for City of Danville Office of Economic Development

“It’s a 130- to 140-year-old building and the cost of rehabilitating a building of that age is significant. Without the (tax credits), not one of the buildings could be reused from a dollars-and-cents perspective.” – Telly Tucker, Danville Director of Economic Development

For more information contact:

Tammy C. Propst | 864.271.2737 | tpropst@taxadvantagegroup.com