Transforming Southwest Virginia's Economy through New Markets Tax Credits

Transforming the Economic Landscape of Southwest Virginia



In a significant investment aimed at revitalizing the economy of Southwest Virginia, Rural Development Partners has allocated $10 million in New Markets Tax Credit (NMTC) financing to Tate Access Floors, Inc. This funding will be used for the transformation of an abandoned facility in rural St. Paul, Virginia, marking a pivotal moment for the region's infrastructure manufacturing sector.

The facility, which had remained dormant for the last 15 years, is set to become a state-of-the-art manufacturing hub. According to the plans, it will bring more than 170 full-time equivalent (FTE) jobs, alongside 81 construction roles. This is more than just an investment in a building; it signifies a commitment to spur economic growth and provide essential job opportunities in an underserved area.

The NMTC Initiative



The $10 million investment is part of a larger package totaling $35 million in New Markets Tax Credits, which also involves contributions from Three Roots Capital and Dudley Ventures. These initiatives are crucial not only for boosting local employment but also for enhancing infrastructure throughout Southwest Virginia. The renovation is expected to promote local engineering and operational excellence in the manufacturing of data center components, responding to the surging demand in the data center industry.

Dan Helgeson, CEO of Rural Development Partners, expressed his enthusiasm about this NMTC closing, noting, "RDP is excited to announce another NMTC closing that strongly fits into our core mission of providing high quality, accessible jobs to Rural America. We look forward to partnering with Tate to bring additional employment opportunities to an underserved region in SW Virginia."

Tate Access Floors: A Legacy of Innovation



For over 60 years, Tate Access Floors has been at the forefront of manufacturing airflow management solutions, catering to the increasing demands of the data center market. With the rise of digital technologies and the evolving landscape of AI, telecommuting, and cloud services, the need for efficient and reliable data center infrastructure has never been more critical.

The new facility will span 284,000 square feet, featuring advanced manufacturing capabilities while also providing office space for local engineers and operations staff. The NMTC funding is earmarked not only for purchasing and refurbishing the building but also for acquiring new equipment and maintaining necessary inventory, establishing a robust operational foundation.

Job Creation and Community Development



This investment is expected to yield profound impacts on the local economy. In addition to the 170 permanent positions, the project will create numerous construction jobs — vital for the region's workforce. As Tate Access Floors expands its operations, the local community stands to benefit from increased economic activity and job creation, effectively enhancing quality of life for the residents of Russell County and neighboring areas.

A Strategic Location for Future Expansion



The strategic location of the new facility in St. Paul positions Tate well to tap into the booming data center market, particularly in areas like Northern Virginia and Ashburn, known for hosting major data center hubs globally. This relocation will enable Tate to expand its footprint and manufacturing capabilities across the country, catering to the growing scope of digital services and infrastructure needs.

Rural Development Partners has been working diligently since 2004 to leverage NMTCs to bolster economic growth, having secured a total of $816.7 million from the U.S. Treasury. Their mission focuses on creating public-private partnerships that foster job growth in rural America, ensuring that underprivileged communities receive the support they need for sustainable development.

For more information about the Rural Development Partners and their initiatives, visit their website and follow their social media platforms.

This revitalization project marks a remarkable transformation for not only the facility itself but also the community it serves, exemplifying how strategic investments in infrastructure can lead to widespread economic benefits.

Topics Business Technology)

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