Photo via Pixabay
Photo via Pixabay

The Orthopaedic Institute for Children announced Tuesday that it will be receiving $24.5 million in construction funding through the New Markets Tax Credit Program and that the money will help fund a series of new construction projects at its Downtown Los Angeles campus.

The projects include a new urgent care center, physical therapy department and research laboratories, the institute said in a statement, adding it will also reimburse $9.5 million spent as part of the 2016 construction and opening of OIC’s ambulatory surgery center.

Financing for the project was secured by OIC’s longtime banking partner JPMorgan Chase and funded by three Community Development Entities: The Los Angeles Development Fund, Urban Research Park CDE and Chase New Markets Corp., the statement said.

New Markets Tax Credit Programs leverage private sector capital into below-market, flexible financing, which ultimately will provide the institute a net benefit of approximately $5 million, according to the statement.

The program, enacted in 2000, is designed to stimulate capital markets investment in low-income communities throughout the country. At OIC, 94 percent of the children served are uninsured or underinsured, but no child is ever turned away because of an inability to pay, the statement said.

“We are extremely grateful to Mayor Eric Garcetti, Congresswoman Karen Bass and Councilman Curren Price for their ongoing support of OIC and for their passionate involvement in helping us secure this funding,” said Dr. Anthony Scaduto, president and chief executive officer of OIC.

“The New Markets Tax Credit Programs that are being provided as a result is truly a game changer and will allow us to significantly enhance the services we provide to the children of our community.”

The construction program, scheduled to launch this fall, will begin with the building of a new urgent care center that will more than double the size of the current orthopedic trauma wing. It will be followed by the building of a new physical therapy department and seven new research laboratories.

A number of infrastructure upgrades will also be included in the master project as many of OIC’s current facilities are more than 50 years old.

—City News Service

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