Citi and Dakotas America Partner to Allocate $24 Million in New Markets Tax Credit Financing to Expand Rockyford School on the Lakota Pine Ridge Indian Reservation

Citi Community Capital, the community development lending and investing arm of Citi, in partnership with Dakotas America LLC, the primary recipient of new markets tax credits in the state of South Dakota, recently closed on a combined $24 million New Markets Tax Credit (“NMTC”) transaction that will finance the major rehabilitation and expansion of a facility used by the Shannon County School District as a K-8 public school.

Located near Rockyford, South Dakota, the school district encompasses the Lakota Pine Ridge Indian Reservation. The new facility will increase the capacity of the school to accommodate a growing population as well as provide modernized facilities and enhanced technology to improve the quality of education for some of America’s neediest students. Pine Ridge has historically ranked as one of America’s most impoverished communities.

The transaction could not have been accomplished without the involvement and support of GROW South Dakota. This private non-profit corporation was established in 2007. Its mission is to create sustainable communities through investments for housing, educational and economic opportunities for the region. GROW established a subsidiary entity that will use the funds from the transaction to construct and own the new facility, and lease it to the school district for ongoing operating use.

“There is a great need in the United States to improve the quality of the education of our students. By leveraging Citi’s capacity to provide both debt financing and investor equity totaling $ 17.6 million, along with a New Markets Tax Credit allocation of $15 million, Citi is honored to be a part of this vital project in Shannon County, South Dakota that provides for both job creation today along with better preparation for the labor force of tomorrow,” said Andrew Ditton, co-head of Citi Community Capital.

The new facility will provide space for an array of outreach programs such as sports, art, music, theatre, language education, and summer camps with the goal of improving the overall quality of education. In the past, drop-out rates on the reservation have been reported to be as high as 70% for teens; one goal of the project is to reduce drop-out rates through improved early education programs. A longer term goal is to reduce exceedingly high unemployment rates- reported to be as high as 80% in some areas of the reservation.

Approximately 356 permanent full-time jobs will be maintained at the school district, in addition to the approximately 30 construction jobs needed to complete the project. Census data reflects a growing population of entry level school children for the region. This new facility will provide space to accommodate up to 20 additional teachers. It is further anticipated that the project will aide in the retention of current staff which has historically had a teacher turnover rate that has been far in excess of the national average according to the Link Center Foundation.

In addition to the Rockyford School project, plans are also underway to allocate up to an additional $20MM for the renovation and construction of the Batesland School in nearby Batesland, SD.

Citi Community Capital (CCC) is a premier financial partner with nationally recognized expertise in financing all types of affordable housing and community reinvestment projects. CCC's origination, structuring, asset and risk management staff across the country provides creative financing solutions designed to meet their clients' needs. CCC helps community development financial institutions, real estate developers, national intermediaries and nonprofit organizations achieve their goals through a broad, integrated platform of debt and equity offerings. Additional information may be found at www.citicommunitycapital.com.

Dakotas America LLC was formed by South Dakota Rural Enterprise and the North Dakota Rural Development Finance Corporation to place New Markets Tax Credit (NMTC) allocations in projects within North and South Dakota. Dakotas America works with developers, local, state and tribal governments, and economic development corporations to identify projects that qualify for NMTC financing. The New Markets Tax Credit program enables Dakotas America to tackle regional projects that will have the greatest positive impact on the communities served, expanding economic opportunity and improving the quality of life in areas that need it most. For more information, go to www.dakotasamerica.com.