Pueblo of Laguna tribe
New Markets Tax Credits in the News
July 26, 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
The Pueblo of Laguna tribe – located about 50 miles outside of Albuquerque, New Mexico – received $14 million in NMTC allocations for necessary repairs and improvements in various areas of life, most notably in new wastewater management and sewage infrastructure. The project provides 40 new construction jobs and three new full-time jobs with full benefits. Once completed, the Pueblo will have much more sanitary conditions in all six villages, all of which were hit badly by COVID.
A $35 million, 95,000-square-foot data center facility is under construction in Eatonville, Florida. $6.5 million in NMTC financing is being delivered by Mid-City Community CDE. The construction site was formerly a school. This marks the first step in the redevelopment of roughly 100 acres of vacant sites that have not seen development in more than five decades. The future hub will fulfill a growing demand for high-speed 5G connectivity, fiber networks, and public cloud storage throughout the Southeastern United States and South America. It is slated for completion in 2022.
The Millwald Theatre opened in 1928 in downtown Wytheville, Virginia before closing its doors in 2005. Now, partially thanks to NMTC allocations from CDE Enhanced Capital, the theater is slated for a complete restoration. Construction for the 500-seat theater should be finished in September 2022, and local leaders are counting on the revitalized theater to aid economic growth in Wytheville. The Millwald will serve as a theater, educational center, and cultural arts center. Once completed, this project will provide seven new full-time jobs as well as several part-time supporting jobs.
A $20 million extended stay hotel is under construction in Milwaukee, Wisconsin. Construction was initially planned for April 2020, but COVID halted development. Now, the 128-room facility is set to be completed in early 2023. Rooms will be either one-bedroom or studio style. The building will also feature meeting rooms, a fitness center, and an indoor pool. The project is expected to boost economic activity in the region and create several part- and full-time positions.
In the automotive textiles industry, Natural Fiber Welding (NFW) has closed $15 million in new funding, accelerating growth of the company to meet the demand of existing product lines. Part of the financing comes from NMTC allocations from BMW i Ventures. NFW manufactures sustainable leather alternatives that use neither animal products nor petroleum-based plastics. “Natural Fiber Welding has developed an innovative process of converting plants into all-natural, 100% recyclable material that mimic all the properties of traditional leather, yarns and foams. Having a scalable, cost-competitive alternative to leather with premium qualities is key to further advancing the decarbonization of the automotive industry,” said a managing partner at BMW i Ventures. The project may provide as many as 240 jobs for Peoria, Illinois.
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.