Timeline Theatre
New Markets Tax Credits in the News
June 1, 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.
News
On May 25, 2022, Next City released an article detailing an interview with Tom De Simone, the leader of Genesis LA. Genesis LA is a CDFI that focuses on south and east Los Angeles that focuses on investment using NMTC and direct loans. Since De Simone took over Genesis LA, he has grown the CDFI from a total investment of $15 million in 2013 to over $400 million today. In the interview, De Simone speaks on the importance of deep ties to communities and the need for CDFIs in Los Angeles, specifically. De Simone highlights the concentration of CDFIs along the East Coast, Bay Area, and the Midwest; however, he hopes to see a greater CDFI presence in south and east Los Angeles as these areas are underserved in comparison to different parts of the city and surrounding area. Additionally, De Simone speaks on Genesis LA’s own work through its concentrating on certain neighborhoods to avoid spreading resources too thin but providing enough investment to make real changes. Additionally, Genesis LA tends to invest in projects that have an impact on the local communities. Genesis LA focuses on projects that likely cannot get any investment from other lenders and also hopes to partner with an organization from the very beginning to help create the project and keep ideas flowing. Next City is currently doing an article series detailing the CDFI industry through the “lenses of equity, public policy, and inclusive community development.” To read more about this series, visit the CDFI Futures homepage here. To learn more about De Simone and Genesis LA’s work, visit the Genesis LA website here.
A Jamestown Area YMCA desperately needs investment to fund its $31 million construction. The current YMCA in the area is no longer viable and will likely be unusable within the next two or three years, making the operation of the new facility the only option for the community. Tom Benson, the project manager of the new YMCA, hopes to have the funds for construction raised by fall 2023 and plans to open the facility sometime in 2024 or 2025; however, without the necessary funding, the area could lose access to both its old and new YMCA facilities. To fund this project, Benson and YMCA officials hope to raise at least $5 million using NMTCs, donations from foundations, and grants. In the meantime, other organizations in the area are donating their resources to YMCA members who cannot yet use the new facility. To follow along with this project, visit the Jamestown Area YMCA website here.
Projects
Spike Brewing plans to expand current operations into three additional production lines using a new manufacturing facility located in the Estabrook Park neighborhood in Milwaukee. This facility, which costs $9 million, will both retain its 25 employees and add 20 new employees, and will provide rental locations for different businesses during construction with the intent to eventually occupy the entire building. The new Spike Brewing facility will be entirely powered with solar energy and will offer educational opportunities for community members to learn about the process of brewing beer. To fund this project, Spike Brewing is utilizing funding from NMTC and other forms of financing. To learn more about Spike Brewing, visit the website here.
Timeline Theatre in Chicago recently received funding for its new theater space. The construction of the project involves the partial demolition and whole renovation of a warehouse space to move the theater activities from its currency location in a church building. This new space will include 250 seats and theater spaces, in addition to educational rooms, restaurants, and office spaces. The project, which costs $37.6 million total, will receive funding from $2.5 million in NMTC, $2.5 million in state grants, $10 million from TIF funding, and over $20 million from a capital campaign and a bridge loan. Project officials hope to complete construction between December 2023 and mid to late 2024. To learn more about Timeline Theatre, visit the organization’s website at www.timelinetheatre.com.
The Greater Jamaica Development Corporation (GJDC) recently announced the opening of a new office space in Jamaica, Queens. The new office building, entitled Greater Nexus, was built to help small businesses operate in modern office spaces to bring innovation and entrepreneurship to Jamaica. The GJDC is known for its involvement in affordable housing programs and other projects that improve general quality of life in Jamaica, Queens. Greater Nexus will open in June and will include 10,000 square feet of office space. In addition to offering flexible, variable office spaces, Greater Nexus will also be open to the public and include pantries, meeting and conference rooms, lockers, phone booths, and a variety of spaces, including an open work area and smaller offices to combat the spread of COVID. Due to the rise in cost of construction materials and change in building plans, the GJDC hopes to finance the project with federal and market tax credits, including NTMCs. This investment is financed through the NYC Economic Development Corporation. Greater Nexus is just one of the efforts in the Jamaican area intended to revitalize the community and support small businesses. To learn more about the GJDC, visit www.gjdc.org.
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.