Two projects in Knoxville are providing dramatic proof of how strategic investment will help the area grow stronger, healthier and more economically vibrant.
Through its New Markets Tax Credit platform, Regions Bank is helping advance developments that will expand workforce opportunities, improve access to both health care and youth services, and create new pathways to economic mobility in underserved areas of the city.
In the Western Heights neighborhood, Knoxville’s Community Development Corporation and the City of Knoxville are leading Transforming Western, a comprehensive redevelopment effort designed to revitalize a historically underserved community just west of downtown Knoxville.
Meanwhile, on the city’s east side, the Knoxville Leadership Foundation is redeveloping the historic Swan Bakery building into an expanded KnoxWorx workforce development center serving individuals seeking employment opportunities and a fresh start.
The Swan Bakery building is being converted for workforce training by KnoxWorx, helping to develop rising talent.
While each project serves a different purpose, both share a common goal: creating opportunities that help people and neighborhoods thrive. And both are being supported by Regions through New Markets Tax Credit financing, as well as Capital Investment Tax Credits (CITC) financing through Three Roots Capital LLC.
Creating Lasting Impact
The impact of Regions’ investment in the Western Heights project extends well beyond bricks and mortar. While the most visible aspect of the project is the construction of the new Connections Building, the real power is how the facility is designed to bring critical services and economic activity into a neighborhood recovering from years of disinvestment.
The need is profound. More than 43% of residents in the census tract live below the poverty line and median family income is significantly below that of the surrounding area. Transforming Western seeks to address the needs of the community, creating new jobs while establishing long-term community assets that focus on workforce development, entrepreneurship, health care, youth enrichment and access to healthy food.
As one example, Junior Achievement of East Tennessee anticipates reaching approximately 2,450 individuals each year through programs focused on entrepreneurship, work readiness and financial literacy.
Meanwhile, Real Good Kitchen expects to support more than 100 entrepreneurs annually while providing workforce training and affordable food options. Further, the University of Tennessee Medical Center expects to serve roughly 1,700 patients annually.
At the same time, by providing an expanded Boys & Girls Club facility, more youth programs can be supported, providing expanded educational and enrichment opportunities.
And Regions Community Investments is at the forefront of this effort, providing $10.92 million in equity investments as part of a $35 million NMTC allocation supporting the project, with the allocation provided by The Reinvestment Fund, Inc., CAHEC New Markets LLC, and Rose Urban Green Fund, LLC. In addition, through CITC, Three Roots Capital LLC provided $11,518,915 in funding.
Elsewhere in Knoxville, the Connections Building will provide multiple services to a neighborhood in need of investment.
Creating a Robust Workforce
Across town, the KnoxWorx project represents a different but equally critical part of economic development: workforce creation. That means more workers trained in construction, health care, manufacturing, hospitality, welding and other in-demand industries facing labor shortages.
Regions Community Investments is providing a $4.056 million equity investment supporting $13 million of NMTC allocation for the KnoxWorx to transform the historic Swan Bakery building into a 25,000-square-foot workforce training center. The allocation was provided by River Gorge Capital, LLC and People Incorporated Financial Services, with Three Roots Capital providing $7,500,000 in CITC funding.
Upon project completion, the Knoxville Leadership Foundation looks to dramatically expand sustainable employment opportunities for residents. With the increased capacity made possible by the new, expanded facility, the program is expected to grow from approximately 250 to 350 participants annually to as many as 1,000 participants each year. Training pathways include construction, health care, manufacturing, hospitality, welding and other in-demand industries that continue to face workforce shortages.
One particular focus is helping individuals surmount barriers to employment, including those returning from incarceration, residents involved with the court system and individuals recovering from substance use disorders.
By helping participants gain industry credentials, employment skills and direct connections to employers, KnoxWorx is creating a path to long-term economic stability for workers–while helping businesses address labor needs.
The program is already successful. According to KnoxWork, those who complete training experience substantially lower recidivism rates, while simultaneously raising hope. In turn, the emphasis on workforce development contributes to stronger communities.
Investing in Economic Growth
Together, these projects show how NMTC financing through Regions Bank can create a multiplier effect throughout a community. Not only are the developments expected to create and retain jobs, but they create an environment that attracts additional investment, increases access to essential services, supports entrepreneurship and strengthens the workforce pipeline.
We’re excited at how Transforming Western and KnoxWorx both can help residents gain workforce skills, access health care, launch businesses and connect with resources that can improve quality of life for generations. Steve Ross, Regions New Markets Tax Credit team lead
Just as importantly, these efforts provide residents with the resources to help break cycles of generational poverty and expand access to opportunity.
“New Markets Tax Credits function as a catalyst, bringing projects to life in communities where investment is needed the most,” said Steve Ross, Regions New Markets Tax Credit team lead. “The strongest community investments are the ones that create lasting economic opportunity.
“We’re excited at how Transforming Western and KnoxWorx both can help residents gain workforce skills, access health care, launch businesses and connect with resources that can improve quality of life for generations. That’s exactly the type of transformational impact New Markets Tax Credits were designed to support.”
Commitment to Community
For Regions Bank, these projects are just the latest examples of a broader, corporate commitment to helping communities grow through innovative solutions.
We are proud to help create opportunities for individuals and families while strengthening Knoxville’s overall economic foundations. Rob Stivers, Regions market president for Knoxville
“Regions has a long history of supporting Knoxville and the surrounding region. These projects demonstrate what’s possible when community organizations, public-sector leaders and private partners come together around a shared vision,” said Rob Stivers, Regions market president for Knoxville.
“Economic growth is most meaningful when it reaches every corner of a community. We are proud to help create opportunities for individuals and families while strengthening Knoxville’s overall economic foundations. It’s just one more way we strive to support the long-term success of our community.”