River Market
New Markets Tax Credits In the News
November 3, 2021
The New Markets Tax Credit (NMTC) Program is a federal financial program developed by the United States Department of the Treasury to incentivize community development using federal tax credits allocated by private investors in disadvantaged and distressed communities. In this biweekly blog, LifeCity will discuss key developments related to the NMTC Program.
Recent developments in the NMTC space include a newly designated area of investment, a leader in the NMTC field promoted to a high-profile position, and two updates on NMTC-funded projects.
News
In the city of Little Rock, Arkansas, a census tract that covers the area known as River Market was designated as an area of severe economic distress by the city board. This area includes the Arkansas Museum of Discovery and River Market Hall, which normally generate most of their income from tourism. As a result of the pandemic, this industry has suffered and struggled to bounce back. The new designation will help the River Market area attract NMTC funding that could help get the museum back on its feet. Community Development Entities (CDEs) with an interest in funding STEM education may be interested in the museum’s featured Room to Grow exhibit.
The city of Spokane, Washington has just announced its new Community and Economic Development Director, Steven MacDonald. Prior to this role, MacDonald worked at Strategic Development Solutions, a CDE based in Los Angeles. In his time at Strategic Development Solutions, he was in charge of acquiring NMTC funding. Having someone with direct NMTC experience in such a public and influential role will bring more awareness to the NMTC program. MacDonald has noted that several census tracts in Spokane — a city of over 200,000 — could benefit from NMTC funding but have yet to utilize it.
Projects
In the small city of Rockford, Illinois, a historical meeting and events building called the Elks Club is at risk of being torn down. After being vacated and exchanging ownership several times, the current owners have announced plans for the renovation of the century-old building. However, the mayor has set a deadline of January to repair the structure or risk its destruction due to safety concerns. The Elks Club violates several city building codes and has deteriorated over the course of its vacant years. The cost of repairing and renovating the building will be steep, so the owners are looking into NMTC funding from CDEs who could be interested in protecting this historic building.
In Selma, Alabama, a previously shuttered silicon metal plant announced that it will gradually reopen, beginning this coming December. The company, Global Metallurgical Inc., is hoping to use NMTC funding to upgrade their equipment before they can start producing silicon metal again. This silicon is in high demand for its use in electronics, vehicles, consumer products, and more. The reopening will create 100 direct jobs and 150 jobs for suppliers.
These inspiring projects and more are underway across the US. LifeCity specializes in impact assessments and third-party validation services for CDEs engaged in NMTC-financed projects. As a third-party, we help CDEs and other companies measure, manage, track, and report their impact to ensure a credible and transparent message. Our services are available across all stages of the NMTC allocation process and provide personalized impact reports and videos that support clients, projects, and communities.