Port of Hueneme Closes New Markets Tax Credits Deal

 Tis the Season with a multi-million New Market Tax Credit Transaction. Taking advantage of a federal ‘New Markets Tax Credits Program’ (NMTC) the Port of Hueneme successfully completed an application that will help the Port better finance it’s Shore Side Power infrastructure. The financing will also help fund other needed improvements to the Port as well as provide development and funding for a new non-profit corporation to collaborate with Ventura County-based FOOD Share, Inc. to bring millions of pounds of fresh and nutritious food to federally-designated “food deserts” in the region. 

Wells Fargo and Clearinghouse CDFI paved the way for this financial opportunity bringing over $3 million to the New Markets Tax Credit transaction. Other professionals on the project included Lowe Enterprises as NMTC consultants, Willdan Financial Services as financial advisor and Burke, Williams & Sorensen LLP as special legal counsel to the Port. Port Renovation, Inc. was represented by Nixon Peabody, LLP. 

Said the Port’s Chief Financial Officer Andrew Palormares,“The finance team here at the Port is most pleased to announce the success of this NMTC transaction. We extend our appreciation to all the stakeholders that made this deal a reality.” 

President of the Board of Harbor Commissioners Jason Hodge remarked, “The Port’s use of the new markets tax credits program attracts private equity investment to our important projects. It is a natural step in the Board’s continuing efforts to bring value and economic vitality to our customers and our region. This program will bring nearly-three million dollars of added funding underscoring our significant role within our community and California’s economy.” The project will result in over 160 new construction jobs and significant property improvements to the Port’s Arcturus Station site in the City of Oxnard. 

The Port combined the NMTC financing with a grant from the California Air Resources Board to help offset the purchase and installation of a state-of-the-art electrification system allowing ships berthed at the Port to shut down their more polluting marine diesel engines and plug-in to a shore side source of power while in port. 

Over the life of the project, the Port’s newly tested and certified shore power system will dramatically reduce vessel emissions of ships at berth, including Particulate Matter (PM) by 92%, Nitrous Oxides (NOx) by 98% and Green House Gasses (CO2) by 55%. The Port’s railhead will also receive funding for much needed asphalt upgrades and more efficient lighting. The Port’s CEO and Executive Director Kristin Decas noted, “We are grateful for the partnership of our lender Clearinghouse CDFI and investor Wells Fargo Community Lending and Investment for their confidence and leveraging of this opportunity that best postures the port in a global economy, while at the same time bringing tangible benefits to the citizens of Ventura County”. 

Enhancing the project, the Port partnered with Port Renovation, Inc., a newly-formed California Public Benefit Corporation, that will oversee targeted Port projects including the funding of a Mobile Pantry Program through the well-established FOOD Share, Inc. The program will bring fresh, nutritious produce to designated areas known as “food deserts” within Ventura County. FOOD Share Inc, will bring food, free of charge as well as nutrition counseling and cooking classes to these designated “Food Deserts”. “<We> convey our gratitude and excitement to the Port for making it possible to finally bring an impactful and meaningful hunger alleviation program that was on our wish list for so long!!” emailed Bonnie Weigel, Chief Executive Director of FOOD Share Inc.