The Industrial Commons Closes Complex Federal Financing to Advance Innovation Campus and Secure Long-Term Community Ownership

Written By Sarah Crisp

Architectural rendering of the Accelerator Building currently under construction at the Innovation Campus site.

The Industrial Commons (TIC) has closed on a major financing milestone to support the development of its Innovation Campus and the acquisition and rehabilitation of its existing headquarters on Hopewell Road—but this is not a cash grant. Instead, TIC has successfully leveraged the federal New Markets Tax Credit (NMTC) program, a tool that allows private investors to support community development projects in economically-distressed areas in exchange for federal tax credits.

In simple terms: this transaction allows TIC to attract private investment into the community, reduce the cost of borrowing for a complex development project, and—after a seven-year compliance period—own its buildings outright. No single entity is writing a check to TIC; rather, the financing brings together multiple partners and funding sources to make a long-term, community-serving project financially feasible.

Closing on the Financing

The financing supports TIC’s $37.25 million development project, which includes:

  • Construction of a new Innovation Campus, and

  • Acquisition and rehabilitation of TIC’s existing headquarters building on Hopewell Road

Together, these components comprise TIC’s NMTC-eligible project. Through this transaction, TIC secured an NMTC allocation of approximately $37.25 million, which will support construction, pre-development, and related project costs.

Because the project is located in a federally designated economically-distressed area and is designed to generate measurable social and economic benefits—such as job creation, workforce training, and local manufacturing capacity—it qualifies for the NMTC program, administered by the U.S. Department of the Treasury.

How the New Markets Tax Credit Works

The New Markets Tax Credit program incentivizes private investment in underserved communities by offering federal tax credits to investors. In TIC’s case, Truist is purchasing the tax credits and serving as the tax credit investor.

As the investor, Truist has a vested interest in the project’s success and impact. Over the seven-year compliance period, TIC will report on project outcomes, construction progress, and community benefits, ensuring accountability and alignment with the program’s goals.

“Truist’s participation represents a meaningful investment in Morganton, not as a donation, but as a long-term commitment to a project that is designed to deliver real economic and social returns,” said Erin Kizer, Senior Director of Infrastructure at TIC.

Completing the Capital Stack

A critical component of the transaction is a $10 million Program-Related Investment (PRI) loan from Dogwood Health Trust, which allowed TIC to complete its capital stack and move forward with the NMTC structure. The PRI made it possible for TIC to acquire its existing headquarters in late 2024 and unlock the full NMTC transaction. Without a mission-driven lender willing to provide below-market financing, the project would not have been feasible at this scale or on this timeline.

By combining the Innovation Campus and TIC’s existing building into a single NMTC transaction, TIC was able to maximize impact, reduce financing costs, and set the stage for long-term community ownership at the end of the seven-year NMTC period.

Partners and Advisors

This transaction was made possible through collaboration with a broad group of partners, including:

Looking Ahead

This financing milestone marks a significant step forward for The Industrial Commons. Over the next seven years, TIC will focus on delivering the project as promised—tracking outcomes, supporting workers and manufacturers, and building an ecosystem that is designed to last.

At the end of the NMTC compliance period, TIC expects to own its facilities outright, ensuring long-term stability and community control over critical economic infrastructure.

Sarah Crisp
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