Berea College—Facilities Management and Student Labor Complex

101 Chestnut Street
Berea, KY 40404

Census Tract

48453002211

Poverty Rate

31.50%

Median Income

69.46%

Total Project Cost

$8,500,000

Federal NMTC Financing

$3,289,474

State NMTC Financing (KY)

$3,289,474

Project Completion

March 2021

THE PROJECT
UDF will finance the construction of a new facilities management and student labor complex. This facility will replace a ‘compound’ of eight different buildings encompassing ~32,000 ft2 used as headquarters for the Physical Plant operations of the College. All of FM’s existing structures were built in 1940 or earlier, one in 1911, and are in dire need of updating.  This project has been deferred since prior to the Great Recession and the combination of deteriorating physical condition of the buildings, as well as the lack of efficiency that comes from having operations spread out in multiple buildings amplifies the immediate need. 
The proposed FM complex will consist of a 30,100 gross square feet main structure and a 10,200 gross square feet auxiliary structure.  The main structure will house all FM staff, administrative offices, student meeting and training areas, and all trades except the auto maintenance shop and recycling.  The auxiliary structure is planned to house automotive and recycling, bulk storage, and bus parking, as well as provide for possible future expansion needs.  The office will be 2-story to minimize the footprint on the site and to provide the aesthetic character to fit the campus.  Additional mezzanine space is proposed in the warehouse area to provide for store-room storage as well as overflow storage or future expansion. 

PROJECT FINANCING
UDF will provide loans totaling $3.29million. The loans will include: a below market interest rate, lower than standard origination fees, longer amortization period, a lower than standard debt service coverage ratio and in year 7 the borrower can purchase the loans for $1,000

COMMUNITY IMPACT
Berea College is located in a severely distressed, non metropolitan census tract and focuses on providing benefits to low income residents of Appalachia. Recently, the Christian Appalachian Project honored the College as a Champion of Appalachia for the significant impact it has had on the central Appalachian region. The first interracial and co-educational school in the South, the College is firmly embedded in Appalachia. Besides educating and equipping thousands of teachers, nurses, agricultural agents, and others to serve their home communities, the College has a long history of bringing educational and social services directly to the Appalachian people where they live.
Berea also provides needed social services to the local community. Through programs such as Berea Kids Eat they served over 76000 meals, distributed over 5200 books, and sponsored over 300 local activities for children in 2018.
This Project will enhance the College’s existing student labor program and will improve the overall efficiency of one of the most important and unique parts of the College’s culture. Through Berea’s work/study program which ensures that students are debt free at graduation. During 2018, 45% of the student population identified as part of a minority group. 28% of first year students in 2019 were African-American. 1630 students annually attend Berea College and pay $0 tuition and 97% of students are pell grant recipients. 69% of students are from the surrounding Appalachia, which suffers from continuing poverty and lack of job opportunities.

Tax Credit Investor:
PNC Bank