What Plymouth Soundings Does
Working hand in hand with its’ Clients, Plymouth Soundings will:
- Become an integral part of the Client’s team working closely with team members throughout the process, participating in and contributing to all aspects of the project.
- Guard your interests as your representative and advocate throughout out the project.
- Improve project functionality and overall project success through Plymouth Soundings’ extensive hands-on expertise in project and construction management, accounting, and operations and business management.
- Provide the specialized Tax Credit accounting and coordination expertise, and experience necessary to begin and complete the Tax Credit Financing process while ensuring compliance with all relevant regulations.
- Bring relationships with investors, CDE’s and bankers.
- Bring experienced relationships with outside tax, legal, accounting professionals needed to close a financing.
- Prepare with Client and present your project to investors and CDE’s.
- Coordinate the activities of the many parties in the transaction, keeping the project moving forward while resolving problems as they occur.
- Provide the coordination, accounting and management guidance necessary during your transition to operations, and later, the final wind down.
Plymouth Soundings delivers professional services from initial feasibility through to investor close out at the end of the multi-year compliance period. Plymouth Soundings has provided services to commercial and brownfield projects, private sector developers, non-profits, and quasi-governmental agencies.
The Summary of Services are explained as follows:
Plymouth Soundings Services Summary
Planning and Design
Plymouth Soundings contributions begin at project inception. Darlene (Dee) Smolik works with the Client to determine if the project qualifies for Historic and/or New Markets Tax Credit financing, develops estimates of potential benefits, and identifies opportunities and challenges created by the prospective Tax Credit financing.
Plymouth Soundings works with the Client to address challenges, define action steps, and assist in implementation. Changes in entity structures, new entities needed, and timing for execution of these changes are discussed and evaluated.
As the design process nears completion, Plymouth Soundings works with the Client on sources/uses budgets, operations budgets, and conformance to Tax Credit requirements in anticipation of Tax Credit financing.
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Financing
The financing process is intense requiring multiple reports, analysis, and interaction with required tax, legal and accounting teams, investors, banks, Client counsel and the Client.
Plymouth Soundings becomes a key member of the Client’s team leading it through the process, collecting and preparing the required reports and budgets, managing the closing process, and coordinating the efforts of the all the parties involved while helping solve and resolve issues that will arise.
Candidate investors, the necessary tax, legal, and accounting teams are assembled, and if pursuing New Markets Tax Credits, candidate community development entities (CDEs) will be identified.
Client’s local accountants and legal counsel are key participants in the financing.
As part of this process, Plymouth Soundings will help the Client pursue, if needed, bridge financing for grants, pledges, and Historic Tax Credit equity that is paid-in after project completion, as well as other permanent sources.
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Construction
During the construction period, Plymouth Soundings assists your team with managing and tracking construction costs, budget reconciliations, cash flows between entities, loan draws, and required reporting to lenders, Tax Credit investors, and CDEs (if New Markets Tax Credits), within very structured parameters.
Plymouth Soundings guides the Client on special accounting and cash flow protocols for the multiple entities required in a Tax Credit financing. Close monitoring of contracts and purchases to identify and document Qualified Rehabilitation Expenditures (QRE’s) is ongoing and critical to maximizing the amount of equity funding received.
As construction is completed, Plymouth Soundings prepares data for the syndication accountant, cost certification, reviews the National Park Service Part 3, and prepares documentation for Investor pay-in of equity.
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Operations and Compliance
Activities during this period include specific accounting and reporting procedures.
Plymouth Soundings:
- Continues to act as the liaison between the Client and investors, banks, and other parties.
- Assists in establishing accounting protocols and preparing unique accounting entries, monitors cash flow and related activities, supervises audits and preparation of tax returns, and provides guidance on all other accounting and finance issues related to the Tax Credit structure.
Plymouth Soundings can provide the daily accounting services throughout the operations and compliance phase, as needed.
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Wind Down - Investor Exit
At the end of the seven-year post construction compliance period for New Markets Tax Credits or five-year compliance period for Historic Tax Credits, investors may exit the project. Plymouth Soundings will work with the investor, tax, legal and accounting teams to plan, implement and coordinate this process.
Plymouth Soundings will assist the Client in negotiating exit terms, preparing final compliance reports, instructing the Client regarding required changes to their operations and accounting procedures, and coordinate audits and final tax returns.
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Success Stories
Dee is a thorough, proactive business partner. I had the opportunity to work with her on a complex New Markets Tax Credit transaction that entailed multiple funding streams and lengthy negotiations. She effectively advocated for her client, coordinated all of the parties involved and was unfailingly available to facilitate the process.
Dee is a valuable resource to any organization that is undertaking a project that involves tax credits and is a pleasure to work with.
I have had the opportunity to work with Dee to close two transactions with clients that she represents. She truly understands the “big picture,” and is a strong advocate for her clients.
Her knowledge, responsiveness, and attention to detail makes closing and managing complex transactions much more efficient.