In every business, there are hurdles to jump and problems to solve…but for Art Goldammer, accepting average solutions was never an option. When his business, Verity Homes, undertook a growth project supported by the New Markets Tax Credit (NMTC) program, Art moved forward with one thing in mind: to ensure his company could provide affordable, high-quality homes to rural areas.
A Legacy of Innovation
For over 20 years, Verity Homes has been a key player in the home building industry. The company was founded and is currently led by Art Goldammer and operates several entities specializing in production home building, modular home building, and land development. Known for its proactive approach and vertical integration, Verity Homes manages multiple pieces of the construction process, allowing them to minimize costs and enhance overall efficiency.
“We operate under three core values: to be legendary, to protect it, and to find the win. These values are deeply meaningful…rooted in real stories and guiding our actions.”– Art Goldammer, Owner of Superior Walls of North Dakota
Discovering Superior Walls for Rural Projects
One of the primary challenges Verity Homes has faced is meeting the demand for new homes in rural communities. With construction in these areas often proving cost-prohibitive due to the added expense of transporting crews and equipment over long distances, Art recognized a need for action.
Through a networking group of builders, Art discovered Superior Walls, a precast foundation wall company known for their versatility, installation performance, and cost efficiency. These advantages are especially beneficial for rural projects, where traditional methods are both cumbersome and expensive.
There was just one problem: Superior Walls’ closest facility was in Michigan, resulting in high transportation costs if delivered to North Dakota.
“Superior Walls offered remarkable versatility and performance. From installation to placing foundation walls in diverse locations, they excelled. We just needed to get them closer to North Dakota…“ – Art Goldammer, Owner
Financing Solutions Beyond the Mold
Verity Homes needed a unique financial opportunity to bring Superior Walls to North Dakota…
Working in partnership with Dakota Business Lending (DBL) and First Western Bank, Verity Homes explored various funding options and decided to use DBL’s New Market Tax Credit program. This program offered the financial boost needed to offset initial costs and establish a Superior Walls franchise in North Dakota.
Breaking New Ground
Due to the significant project’s size, Art still needed additional financing. That’s when DBL had an idea….
What if there was a way to combine the NMTC with the SBA 504 and Community Impact Loan programs —DBL’s staple financing options that they know and love?
They decided to take the leap and see what they could do.
In 2024, DBL created a custom financing structure that combined the NMTC, SBA 504, and Community Impact Loan programs into one project.
This unique financing package allowed Art to take Verity Homes to the next level.
By utilizing the SBA 504 loan to acquire real estate for Superior Walls, leveraging the NMTC allocation to cover operating expenses, inventory, and start-up costs, and incorporating a Community Impact Loan as a bridge loan to fill a gap before the NMTC loan funded, Art was able to advance the project with efficiency.
“The NMTC program significantly alleviated our cost constraints, particularly during the first years of operation, the SBA 504 helped us purchase the building with an interest rate and down payment we could afford, and the Community Impact Loan served as a bridge loan to help fill a gap. Without these programs, we would have faced much higher capital requirements to start the project.”
– Art Goldammer, Owner
Cementing Success
The new Superior Walls facility is set to be completed in September of 2024, enhancing Verity Homes and providing advanced construction solutions along with significant economic benefits to the region. The project qualified for NMTC funding due to its location in a low-income and distressed area and is expected to create over 30 full-time jobs, contributing positively to the local economy.
As part of DBL’s “Pay It Forward” initiative, aimed at amplifying the NMTC program’s community impact, Verity Homes/Superior Walls will contribute $50,000 in donations to local non-profits and organizations.
This support includes allocated funds to the Abused Adult Resource Center (AARC) and the establishment of two internship programs: the Rehabilitated Felon Internship and the At-Risk Youth Internship. These programs aim to support the reintegration of formerly incarcerated individuals and provide valuable opportunities for at-risk youth.
“We are working closely with the Transition Center to support formerly incarcerated individuals. We already have a few staff members from this program who are excelling. This initiative offers opportunities beyond construction including technology, skill development, and more.“
– Art Goldammer, Owner
Laying the Foundation for Future Projects
When navigating complex programs like the NMTC, Verity Homes has one key piece of advice: have patience. Art stressed the importance of relying on the support of those on your financing team and giving them the time and space needed to get the deal done. And while the process isn’t easy, it was all worth it in the end.
“Patience is key. Allow extra time for approvals and rely on the expertise of your support team. This was critical for the success of this project, especially when dealing with complex financing structures.” – Art Goldammer, Owner
Find out more about Superior Walls of North Dakota.
This article was written by Dakota Business Lending with permission from Packet Digital and is not to be edited or redistributed without permission.
