The compliance period for the New Markets Tax Credits and state and federal historic tax credit financing was successfully completed in August.  The remaining debt relating to the historic renovation has been refinanced with Availa Bank by PCDC ("The 712 Initiative").

Hughes-Irons Building LLC, an Iowa limited liability company, has owned the Hughes-Irons Building property through the compliance period and will continue to hold title to the property into the future.   During the compliance period, Hughes-Irons Building LLC was owned 49% by an entity controlled by the tax credit investor with the remaining 51% owned by Hughes-Irons Facilities Corporation ("HIFC").  HIFC is an Iowa non-profit corporation that has been managing the building and is governed by a board of local citizens.

PCDC arranged the financing and guaranteed the debt and was the developer of the Hughes-Irons Building project.  It is also an Iowa non-profit corporation qualified as a public charity under l.R.C. 501(c)(3).

As part of the unwind of the financial structure, PCDC became the owner of the 49% interest in Hughes-Irons Building LLC.  It is now intended that HIFC will transfer its interest in the Hughes-Irons  Building to PCDC in satisfaction of the remainder of a development fee owing to PCDC by HIFC and as a charitable contribution.

It is also the intention that HIFC will now be dissolved as a corporation.  Because it is a non-profit corporation, Iowa law requires that all of its assets be transferred to an entity which is a public charity under l.R.C. 501(c)(3).

In addition to the membership interest in Hughes-Irons Building LLC, HIFC holds as an asset its right and obligations under the Agreement for Private Development with the City of Council Bluffs dated in September 2009.  HIFC desires to transfer to PCDC all of its rights and obligations under the agreement for private development, including the right to receiving the remaining tax increment financing payments due under the agreement.  PCDC will assume in writing all of the covenants and other obligations of HIFC under the Development Agreement.   In addition, PCDC will assume all the rights and obligations of HIFC, and the Hughes-Irons Building LLC as owner under the Minimum Assessment Agreement between HIFC, the City of Council Bluffs, and the County Assessor dated September 2009.  The actual assessed value of the property far exceeds the amount provided in the Minimum Assessment Agreement.