Destination Crenshaw
New Markets Tax Credits in the News
January 26, 2022
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.
This week, we discuss recent promotions in the NMTC world, a complication in a NMTC-related project, an announcement of a new project in Sioux City, and a public art project in LA.
News
Nine managers working at Novogradac, an accounting and consulting firm, were promoted to the role of principal earlier this month. Several of these professionals have an extensive background in the NMTC space. Justin Chubb Lurya is an expert in the area of affordable housing and community development, including NMTCs. Colette Drexel and Jodie Fish are involved with the financial side of NMTC, including audits and tax returns. Finally, Donald Sabine has extensive experience with NMTCs, especially in the areas of compliance consulting and financial forecasting. It will be exciting to see what these NMTC leaders do in their new roles.
Projects
A previously vacant hospital in Hannibal, MO is currently planned to be transformed into a low-income senior housing center by Community Development Entity (CDE) 3 Diamond Development. Unfortunately, the plan to finance the transformation with various tax credits was denied last month. 3 Diamond and the city’s economic council are working together to determine other options, including potential NMTC applicability.
Cold-Link Linguistics, a cold storage company headquartered in Florida, has announced the opening of a new facility in the Business Park area of Sioux City, IA. This massive undertaking will invest $60 million into the community and create 60 well-paying jobs in the first phase. The community will start to see the effects of the investment once construction begins in March 2022.
A public art project called Destination Crenshaw is bringing creativity and improved infrastructure to a Black business district in Los Angeles. Lendistry, a Los Angeles-based loan agency, will be using NMTCs to fund this project that will create jobs and support other local businesses. The project will include public art installations, planting new green spaces, and construction projects. Three other CDEs are using their NMTC allocations towards Destination Crenshaw, for a total of over $29 million.
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.