Students at an Alabama college will see new dorms this coming semester thanks to a complicated but effective deal helped along by Denver public finance lawyers.
In April, attorneys at Butler Snow helped close a financing deal that would enable Talladega College to build student facilities in a project worth nearly $20 million. To make it happen, they used a unique funding structure that combined the federal government’s New Markets Tax Credits program with a loan from the U.S. Department of Agriculture.
Founded in the town of Talladega, Alabama, in 1867, Talladega College is one the country’s oldest historically black colleges. It’s a private university that has remained fairly small with its enrollment typically staying under 1,000 students a semester. But like so many other private universities in recent years, the school was experiencing rapid growth in its fixed costs that included faculty salaries and benefits. To try and buoy those costs, the school would look to boost its student enrollment, but that would require additional campus facilities be built, including more housing.
Talladega developed plans for a 47,000 square foot student center and a 103-room student housing facility of roughly the same square footage. The student center would have a new dining hall, gymnasium and convenience store among other amenities.