Fort Peck Reservation
New Markets Tax Credits in the News
June 28, 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 and economic growth using federal tax credits allocated by private investors in disadvantaged and distressed communities. The private investors are financial intermediaries that provide loans and investments administered by the US Treasury’s Community Development Financial Institutions (CDFI) Fund. The local financial intermediaries are known by the program as Community Development Entities (CDEs). In this biweekly blog, LifeCity will discuss key developments related to the NMTC Program.
Projects
Construction on a $23 million Wellness Center on the Fort Peck Reservation in Poplar, Montana is underway and scheduled for completion in 2022. Once completed, the new Wellness Center will create 70 new full-time (FTE) jobs to be filled by low-income residents and will address life expectancy discrepancies in Montana. The life expectancy of a typical Montana resident is 78.5 years whereas the life expectancy of a Fort Peck resident is 59 years. The 50,000 square foot Wellness Center will address this disparity by offering medical, dental, and therapy rooms, including tele-health rooms for patients and offices for providers. The Center will also house a gym, a pool, a childcare center, and a space for cultural programs. After a standstill due to budgeting concerns, progress is being made once again thanks to financing from the two Fort Peck tribes–the Assiniboine and the Sioux–and the NMTC Program. NMTC financing was provided by CDE MoFi.
A $14 million Automotive Technology Center recently had its grand opening at the Ivy Tech Community College in Lawrenceburg, Indiana. The Center will support skilled, technical workforce development in the Indianapolis region as well as provide enhanced educational opportunities for Ivy Tech students. The 60,000 square foot Technology Center will be open to students in the Fall 2021 semester and will offer classrooms, student commons, training labs, faculty offices, and corporate labs for manufacturing partners. The program also features 100% job placement for eligible participants with either Toyota or General Motors. CDE Cinnaire provided $9 million in NMTC financing to support the project alongside financing from PNC Community Partners, Inc. and the Indianapolis Redevelopment CDE, LLC.
Hinchliffe Stadium in Paterson, NJ — one of the only two remaining stadium structures home to Black baseball leagues — recently closed on the $94 million in financing needed to redevelop the stadium. BAW Development and RPM Development Group are the responsible entities for the redevelopment of the stadium. The project broke ground in April, and its grand opening is scheduled for Fall 2022. Once completed, the stadium will provide seven FTEs and thirty part-time jobs. In addition to the 7,800 seat stadium, the project includes a 12,000 square foot restaurant and event space, 75 studio-style affordable apartments for seniors, a 5,200 square foot preschool, and a large parking garage. NMTC funding made up $31 million of the required capital from four CDE sources: U.S. Bancorp Community Development Corporation, Community Loan Fund of New Jersey, Consortium America, and RBC Community Development.
All of these great 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.