The new facility allows the King Street Center to expand and offer a fully licensed year-round Early Head Start program; create four new jobs; build a professional quality kitchen; improve adult language instruction, performing arts, computer access, art studio and gymnasium space; purchase essential equipment; and expand administrative office space.Additionally, this transaction further aligns King Street Center and Housing Vermont by creating a fund to financially support King Street Center families enrolled in preschool programs, scholarships for Housing Vermont residents within its Burlington properties; and playground or community room improvements at King Street Center and Burlington Housing Vermont properties. Projects like King Street Center demonstrates Vermont Rural Venture’s commitment to bringing investment to nonprofit groups which otherwise lack access to capital.
Gap and Investment
Although King Street Center successfully met its capital campaign goals for the project, $1.2 million in enhancements and fit up costs remained. To fill the gap King Street Center faced cutting the project short, securing costly long-term financing, or dipping into its working capital reserves. Vermont Rural Venture’s investment brought in $2 million of NMTC equity saving King Street Center from over leveraging, financially weakening and short-changing themselves. The NTMC investment allows King Street Center to enhance its new building with solar photovoltaic panels, increased natural lighting opportunities, improvements to its gymnasium and outdoor areas— and expand its early education services through the addition of a new early pre-school program for children ages 1½ to 3 years of age.