Rural King

New Markets Tax Credit Financing Redevelops Vacant Warehouse
Space into Distribution Center in Appalachian Ohio

New Markets Tax Credit (NMTC) financing has enabled family-owned
retailer Rural King to purchase roughly 800,000 square feet of vacant
warehouse space in Waverly, Ohio and convert it into a distribution and
product assembly center. This investment will enable Rural King to
install distribution equipment such as conveyors and racking, expand its
operations, and hire an additional 75 full time employees in Pike County.
Rural King’s expanded distribution operations in Waverly will serve up to
60 new retail stores in rural and low-income communities throughout the
Midwest and Southeast U.S.

Finance Fund provided $14,000,000 of federal NMTC allocation to the
project; DV Community Investment provided an additional $6,000,000 of
federal NMTC allocation.

The distribution center is located in a non-metropolitan area that
experiences a poverty rate of 22.2% and an unemployment rate of 8%.
Pike County is also classified by the Appalachian Regional Commission as
being at risk of becoming economically distressed, economically ranking in
the worst performing 10% of the nation’s counties.

Rural King is committed to working with local organizations such as the
Community Action Committee of Pike County to recruit and train local
unemployed and underemployed residents. Nearly half of the positions
being created due to this expansion will be for Commercial Driver’s
License certified professional truck drivers. Rural King will partner with
Community Action Committee and Southern State Community College to
train drivers for work with Rural King and other Pike County businesses.

“In addition to offering employment, training, and opportunities for
advancement at the Waverly distribution center itself, the expanded
product assembly capabilities of this facility will allow Rural King to expand
access to much-needed goods and services across remote communities
in the Midwest and Southeast U.S. regions. This expansion would not have
been possible but for the New Markets Tax Credit financing offered by
Finance Fund,” said Blake Pierce, Director of Real Estate and Economic
Development at Rural King.

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