3M Case Study
3M applies science and innovation to make a real impact by igniting progress and inspiring innovation in lives and communities across the globe. With 80 U.S. manufacturing plant locations spanning 29 states, 3M’s portfolio of local, state, and national credits and incentives is substantial and complex.
Problem: To manage its tax credits and incentives portfolio, 3M was relying on Excel spreadsheets and fragmented internal workflows. They were looking for a solution to manage the credits and incentives portfolio within the tax group, with transparency across multiple functions, divisions, and locations. The team lacked visibility into compliance requirements and upcoming deadlines. Overall, the team described the process as disorganized.
Solution: As a trusted advisor, Ryan knew its partner Incentify could help resolve 3M’s situation. 3M partnered with Incentify to implement a one-stop software solution to manage compliance due dates and requirements, forecast cash flow and credit utilization, and ultimately ensure every credit and incentive in the portfolio is properly managed.
Results: 3M has a portfolio of more than 150 domestic credits and incentives centralized on the Incentify platform with clear insights into monetization, cash flow, compliance requirements, and active workflow management.
Using Incentify to manage 3M’s credits and incentives portfolio helps 3M easily advise on business decisions that could impact an incentive agreement, avoiding lost incentives or clawbacks. The Incentify research tool gives 3M the ability to quickly access potential incentives available in a jurisdiction for potential investments.
“Our credits and incentives portfolio lacked a centralized system to track, report, and maintain the large volume and diverse range of incentives. With Incentify, we can easily see everything in one place, leading to better decision making and visibility,” said Andra Brion, Tax Manager at 3M.
Another benefit to utilizing Incentify is the ability for 3M to partner with advisors like Ryan. The platform provides real-time updates and notifications for the client and advisor to stay on top of cash flow, due dates, and data requests.
Next Steps: The 3M Credits and Incentives team will utilize Incentify to report to stakeholders its current incentive portfolio and provide information on potential additional incentives when business decisions are being considered.
The partnership with Incentify will allow 3M to discover new credits and incentives opportunities, continue to collaborate with Ryan, and provide visibility across the company with detailed reporting capabilities.
Ryan assists clients in site selection by playing a significant role in planning and defining a detailed evaluation of each project’s needs. Our team led the one-year site selection effort for Ariat International (“Ariat”), a leading footwear and apparel company that opened a one million square foot regional distribution center in Fort Worth, Texas. Working with the City of Fort Worth, Denton County, and the State of Texas, Ariat brought a diverse range of new jobs to the community to better serve its customers throughout the Southwest. Ryan’s involvement in this public/private partnership brought tremendous benefits to the area.
New Markets Tax Credits
Ryan helped Astoria Co-op secure low-interest loans through New Markets Tax Credits, resulting in forecasted sales growth from $3.6 million to more than $7 million. The incentives are expected to almost quadruple the grocer’s total square footage from 3,100 to 11,600 and more than triple its retail space from 2,100 to 6,800 square feet.
The incentive also benefits the less than 10,000 residents of Astoria, Oregon, where fresh or organic produce and protein selections are difficult to find. Many residents travel across the Columbia River to Warrenton to purchase these items from big-box grocers.
“Since 2009, we have experienced positive sales growth every year, have become a staple in this community through years of service, and added 30 living-wage jobs to our small town,” said General Manager of Astoria Co-op, Matthew Stanley. “Our facility at 14th and Duane was no longer feasible for our growth to serve our community. Without Ryan’s ability to connect us to low-cost capital with favorable terms, this project would have simply not been possible.”
“Our purpose is to liberate clients from the burden of being overtaxed, freeing their capital to invest, grow, and thrive,” said Principal and Practice Leader of Credits and Incentives, Sharon Welhouse. “Working with our client, Astoria Co-op, we were able to deliver the capital needed to give local residents access to healthier organic grocery options, while supporting growth and sustainability in the Astoria community.”
Astoria Co-op’s relocation to a much larger location in town will create additional jobs, impact the local economy, and create a positive impact on community health by availing more fresh fruits and vegetables to residents.
According to its Business Expansion Plan, Astoria Co-op will continue to work with the National Cooperative Grocers (NCG) to plan the physical facility, appropriate organizational changes, and merchandising strategies. Financing was provided to both the Astoria Co-op and its developer Astor Venture LLC by Local Initiatives Support Corporation (LISC).
Ryan recently assisted Reimagine RedBird Development (“RedBird”) with securing a $13 million New Markets Tax Credit (NMTC). This tax credit from the City of Dallas and Capital One Financial Corporation will support the construction of the rebuild and expansion of a mixed-use development in Dallas, Texas.
Led by Dallas developer Peter Brodsky, RedBird’s mission is to repurpose the historic Red Bird Mall in southern Dallas while focusing on community impact driven tenants. Phase one of the rebuild included a Starbucks Community Store, which has committed to training 100 local youth each year in hospitality; a Foot Locker Power store with a green space (the “Lawn”) that will host active events with an emphasis on healthy living for the community; and Chime Solutions, a 50,000-square-foot call center with a wide range of clients. With the goal of continuing its expansion, RedBird offers more than 300,000 square feet for office and medical space to be incorporated into the next development phase. The reimagined RedBird is expected to be fully operational by fourth quarter 2021.
To keep the project on schedule, RedBird also pursued incentives from the City of Dallas and conventional debt from Texas Capital Bank in addition to the NMTC financing. Participation in the NMTC Program will safeguard the fiscal stability of the project while supporting the ability to scale at an optimal rate as new tenants are obtained, ensuring the creation of more than 500 locally sourced, full-time jobs in southern Dallas.
“The New Markets Tax Credit program was designed to bring investment and revitalization to communities that need it the most,” said Sharon Welhouse, Business Incentive and Site Selection Practice Leader and Principal at Ryan. “RedBird is committed to the local community, encouraging active participation and garnering support on all fronts. This is an example of true partnership, and we are excited to see the project continue to flourish.”
Peter Brodsky added, “This New Markets Tax Credit transaction makes possible the jobs, quality retail offerings, and green space that RedBird has committed to provide to the community. We thank the City of Dallas and Capital One for their participation. We are also grateful to the team from Ryan, which led the deal from beginning to end. This was a complex transaction, and it would not have happened without Ryan.”
Southwest Transplant Alliance
In September 2020, Southwest Transplant Alliance (STA) opened its corporate headquarters and state-of-the-art, in-house recovery center in Dallas. The first of its kind in the southern U.S., STA’s Legacy Center is transforming organ and tissue transplantation through innovative technologies and a holistic approach to donor and donor family care. At 77,000 square feet, The Legacy Center enables STA to recover organs and tissues for lifesaving transplants, spearhead advanced transplantation research, train organ and tissue recovery professionals, and educate communities about its mission.
Construction of The Legacy Center was completed in 2020, but additional capital will support the organization’s ongoing facility needs and fully outfit an additional surgical suite for organ and tissue recovery. This $9.2 million NMTC allocation will be utilized for capital improvements, including technology and equipment that will help the organization save more lives.
“We are grateful to Ryan for their partnership in the New Markets Tax Credit process and to CityScape Capital Group and Pacesetter CDE for this generous contribution to Southwest Transplant Alliance,” STA President Brad Adams said.
STA’s mission is to serve families throughout the community and save as many lives as possible with a constant commitment to innovation and creativity. With these partners and this new financing option, they were able to further equip The Legacy Center to save and improve the lives of the community for years to come. With the NMTC allocation from CityScape Capital Group and Pacesetter CDE, STA now has a clear timeline and the required capital for purchasing new equipment.
The Credits and Incentives team at Ryan is focused on helping clients achieve their goals through innovative financing strategies, and our partnership with STA is a perfect example of that. Ryan is honored to have played a part in STA’s milestone, helping them to secure the important New Markets Tax Credit to grow and positively impact the community.
West Texas Centers
West Texas Centers (WTC) serves more than 2,300 individuals with a wide array of mental health and intellectual and developmental disabilities throughout the predominately non-metro communities of West Texas. Because of its locations and rural healthcare circumstances in Texas, WTC had previously been unable to set aside enough funds to purchase much needed data management equipment and working capital. However, after Ryan helped WTC secure $6 million in New Markets Tax Credit (NMTC) financing, not only was WTC able to continue providing exceptional care to its local communities but was also able to do so in facilities with newly upgraded equipment.
The NMTC benefit received by WTC allowed the center to implement a new electronic health record (EHR) system to meet community needs and improve patient engagement throughout all its locations. Patients served by WTC are now able to complete health and insurance forms and assessments prior to appointments, freeing up additional time for their therapy visits, as well as decreasing costs and enhancing privacy and security. In addition, the system assists in tracking patient prescriptions and treatment needs between various facilities to improve the continuum of care in a more safe and reliable manner.
The Ryan team was honored to work with the WTC team on such an incredibly impactful project. With NMTC financing, WTC can now confidently continue providing excellent healthcare services while knowing their hard work and patients are backed by quality technology.
With concerns about COVID-19 and the masking and social-distancing protocols that had to be established in response, it is even more critical to ensure that patients can get, and feel comfortable getting, the care they need. In this respect, the addition of an EHR system also provides WTC and its patients an extra level of preventative measures by actively encouraging telehealth options and reducing potential exposure through minimizing the time patients spend in waiting rooms.
The partnership with Ryan has provided West Texas Centers the ability to replace their previous EHR with an industry-leading software solution, which significantly improves the delivery of services and ultimately benefits their clients. Without the New Markets Tax Credit, this would not have been possible.