rPlanet Earth*

Vernon, CA

In 2014, rPlanet Earth began trying to secure financing to support the construction of its first plastic bottle recycling “bottle to bottle” (raw material to product under one roof) rPET manufacturing facility in Vernon, California.

For the location of the manufacturing facility, rPlanet Earth identified a 15-acre property in a highly distressed census tract but had a financing gap that they could not fill with traditional financing. MBS UI used New Market Tax Credit allocation to help rPlanet close this gap and begin construction of a 302,000-square-foot building on the site. Phase 1 of the project includes the development and build-out of the recycling and distribution facility and the purchase and installation of machinery and equipment. Phase 1 will operate for two to four years to establish market demand before moving onto Phase 2, which will include an additional build-out of a parallel recycling and processing line.

As part of the investment, MBS-UI helped create a program to connect residents of the Pueblo del Sol housing development, which includes 700 residents between the ages of 18 and 55, to jobs at the new site. During Phase 1 alone, the development created 205 construction jobs (85% of which are targeted to low-income people or residents of low-income communities) and 134 permanent jobs (89% targeted to low-income people or residents of low-income communities).

The facility will also greatly benefit the environment. Bottle-to-bottle recycling is a closed-loop process that reduces the need to produce virgin PET from fossil fuels.

This institution is an equal opportunity provider.

Quick Facts 

Total Investment: $94,265,850 (Phase 1)

Square Footage: 302,000 sf

Developer: rPlanet Earth Los Angeles, LLC

Owner: VZB-USA, LLC; rPlanet Earth LA GAP CAM, LLC

Allocatee(s): MBS Urban Initiatives CDE, LLC; Telacu/New Markets Community Capital, LLC; CitiBank NMTC Corporation

NMTC Equity Investor: Citigroup Global Markets, Inc.

Other Financing: Deutsche Bank

Community Partner(s): Pueblo del Sol Community Service Center

Anticipated Completion: December 2017

Projected Construction Jobs: 300

Projected Permanent Jobs: 135 in Phase 1