Orthopaedic Institute for Children Announces $24.5 Million Construction Project Financed by the New Markets Tax Credit Program

Project Includes New Urgent Care Center, Physical Therapy
Department and Research Laboratories

LOS ANGELES–(BUSINESS WIRE)–The Orthopaedic Institute for Children (OIC) announced today that it
will be receiving $24.5 million in construction funding through the New
Markets Tax Credit (NMTC) Program. The monies will help fund a series of
new construction projects on its downtown Los Angeles campus including a
new urgent care center, physical therapy department and research
laboratories. 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 Corporation. Also working on the project on behalf of OIC were
Capital Peak Partners and legal counsel Bocarsly, Emden, Cowen, Esmail &
Arndt.

NMTCs leverage private sector capital into below-market, flexible
financing, which ultimately will provide OIC a net benefit of
approximately $5 million. 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.

“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 Anthony Scaduto, M.D., president and chief executive officer of
OIC. “The NMTCs 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.

Dr. Scaduto says that the relocation of some services and sequencing of
the various phases of the construction have been designed to allow for
all of the existing programs and services at OIC to remain open and
fully operational during the construction projects.

“This project will create good local jobs, both temporary construction
jobs as well as permanent medical and administrative positions as each
phase of the project is completed,” said Dr. Scaduto. “It will also
expand and improve medical services to the community as well as enhance
educational opportunities for our partner school, the Orthopaedic
Medical Magnet High School.”

About Orthopaedic Institute for Children

Orthopaedic Institute for Children (OIC) was founded in 1911 as Los
Angeles Orthopaedic Hospital. Focused solely on musculoskeletal
conditions in children, OIC receives 60,000 patient visits each year. In
alliance with UCLA Health and with the support of the OIC Foundation,
OIC advances pediatric orthopaedics worldwide through outstanding
patient care, medical education and research. Locations in downtown Los
Angeles, Santa Monica, Westwood and Calexico treat the full spectrum of
pediatric orthopaedic disorders and injuries. For more information,
visit ortho-institute.org.

About Los Angeles Development Fund

The Los Angeles Development Fund (LADF) is a California nonprofit
corporation established by the city of Los Angeles in September 2006 to
manage its New Markets Tax Credit program. LADF is certified by the U.S.
Treasury Department’s Community Development Financial Institutions Fund
as a Community Development Entity and has been awarded $175 million in
allocation. LADF uses its allocation to support qualified projects
within the city of Los Angeles. For more information, please visit www.ladfnewmarkets.org.

About Urban Research Park CDE, LLC

Urban Research Park CDE, LLC (URP) was established in 2003. URP is
certified as a Community Development Entity by the U.S. Department of
Treasury and has been awarded $397 million in New Markets Tax Credit
allocation authority. URP uses its NMTC allocation to support real
estate projects focused on healthcare, innovative technology and
education throughout the United States.

Contacts

Orthopaedic Institute for Children
Camille Strickland, 213-742-1501
CStrickland@mednet.ucla.edu