The Spirit Lake Tribe secured a $60 million tax-exempt credit facility from Key to help finance its replacement health clinic in North Dakota, a $73.4 million project supported by New Markets Tax Credits.
KeyBanc Capital Markets and Key Government Finance closed the senior secured financing Sept. 2, according to a transaction announcement.
Key served as sole lender and structuring agent, with the credit facility secured by health services revenues. The transaction was Key’s first financing for the tribe.
Tribal Business News previously reported that Oweesta Corp. provided $16 million in NMTC allocation for the project, its first transaction under the federal program.
The clinic’s financing includes $63 million in NMTC allocations from Oweesta, Native American Bank, Dakotas America and Midwest Minnesota Community Development Corp. Wells Fargo Community Investment Holdings served as the NMTC investor.
Oweesta partnered with Four Bands Community Development, a Native CDFI based in Eagle Butte, South Dakota, to channel its allocation into the project through an intermediary structure.
Designed by DSGW Architecture, the new clinic in St. Michael will replace a half-century-old, overcrowded facility and consolidate primary care, dental, behavioral health, pharmacy, dialysis and other services.
