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Navos Burien Campus gets a boost from New Markets Tax Credits

A partially completed mental health campus in Burien received a significant boost last week when it closed on a $23 million financing transaction involving the federal New Markets Tax Credit (NMTC) program.   The additional financing , along with pending foundation and individual contributions, will enable Navos, a nonprofit community mental health agency, to complete the build-out of its three-story 45,000 square foot outpatient mental health clinic and construct an adjacent 8,000 square foot Community Activities building for operation of a café,  supported employment program and  other program services.

The new facilities replace an existing Burien facility that must relocate to due to the third runway project at SeaTac airport.  The project is expected to generate 150 FTE construction jobs in the south Puget Sound region as well as retain 175 existing FTE jobs from the relocated operations.  Navos expects to expand its capacity to provide critical health and mental health care services by 20% in the new Burien location. 

“The completion of Navos’ new Mental Health and Wellness Center and expansion of innovative programs will change how behavioral healthcare is delivered for people with mental illness and addictions,” said Dr. David M. Johnson, Navos Chief Executive Officer.  ” Our model of care will positively impact the quality of life for thousands of residents of South King County while reducing long term costs of care.”

A capital campaign launched in 2009 secured generous support from corporations, foundations and individual donors.  The State of Washington and the federal government also provided significant investments in the project.

To structure the tax credit financing, Navos and its development consultant, Common Ground, collaborated with King County Housing Authority (KCHA), National Development Council (NDC), WNC & Associates of Irvine, CA and U.S. Bank, which provide both debt and tax credit equity. “Navos’ expansion furthers the goal of the NMTC Program and of U.S. Bank to provide financing that promotes long-term opportunity in communities across the country,” said Maria Bustria-Glickman, Vice President of New Markets and Historic Tax Credit Investments for U.S. Bank. “We’re proud to help bring this project to life, as it will continue to ensure the well-being of individuals and families in King County.”

“We are very pleased support this vital project,” said KCHA Executive Director Stephen Norman. “Navos delivers critical services to many of the households and families living in the surrounding community – it is great to see them expanding and providing a first class program to support local needs”.

“Navos provides an essential lifeline that helps thousands of people with persistent mental illness to live independently in our community and yet these projects are always extremely challenging to finance,” said Michelle Morlan, NDC West Region Director.  “National Development Council is pleased to be a partner in this effort.”

Navos had previously completed the shell and core of the clinic as well as tenant improvements to the first floor, which is now occupied.  Completion of the remaining work is expected by fall 2012.  The project’s architect is DKA Architecture.  JR Abbott is the general contractor.

About Navos:  Established in 1966, Navos is one of the largest licensed mental health providers in King County.  The organization offers a full spectrum of mental health services to more than 6,000 low income individuals each year, from crisis intervention to inpatient psychiatric care to highly specialized outpatient service. Navos provides safe, affordable and dignified supported housing for over 300 clients.