FORT WAYNE, Ind. (ADAMS) – Fort Wayne will receive $35 million in tax credits from the U.S. Treasury Department that are designed to help bring investment in “economically distressed” areas, according to a media release from city officials Wednesday.
In previous years, these funds were used for The Harrison, Plassman Athletic Center at Turnstone, and the YWCA Hefner Center. The projects that will get the funds this year will be announced soon.
The City of Fort Wayne released the following:
Mayor Tom Henry today announced the City of Fort Wayne New Markets Revitalization Fund, LLC (FWNMRF) will receive $35 million in New Markets Tax Credits allocation authority.
Nearly 200 Community Development Entities (CDE) applied for New Markets funding from the U.S. Treasury Department, while only 102 were awarded an allocation. This is the fifth time that FWNMRF has been awarded an allocation, bringing the total tax credit allocation awarded to Fort Wayne New Markets to $183 million and the first time FWNMRF has been awarded an allocation in consecutive years.
“I continue to be encouraged by the growth and success that our community is experiencing. To be awarded these important New Markets Tax Credits, through proactive and strategic work and leadership at the local level, speaks volumes that we’re moving forward in the right direction,” said Mayor Henry. “Fort Wayne and northeast Indiana are recognized leaders in making a lasting and meaningful difference with projects and initiatives that are assisting individuals, families, and businesses.”
“Community Development Entities like the Fort Wayne New Markets Revitalization Fund compete for limited allocations each year,” said Sharon Feasel, director of FWNMRF. “Having this economic development tool available supports growth opportunities that can benefit all of northeast Indiana. Back-to-back allocation awards is a testament that we’re doing a good job selecting important projects to fund and efficiently deploying the tax credit authority entrusted to our organization. We intend to continue that tradition with this allocation award.”
Examples of previous projects supported by FWNMRF include The Harrison, Plassman Athletic Center at Turnstone, and the YWCA Hefner Center. The Landing and Electric Works attracted tax credit allocations from multiple national CDEs in addition to FWNMRF. In addition, FWNMRF has helped fill financing gaps by leveraging additional investments from the private and public sectors in critical community facilities such as Byron Health Center, the Boys and Girls Club and The Rescue Mission.
FWNMRF will look to deploy the tax credits over the next 18 months. Projects that could benefit from this new allocation will be announced in the coming months.
Tax credits are issued by the U.S. Treasury Department and are designed to spur investment in economically distressed areas. CDEs are awarded tax credits based on their history and future plans to deliver significant community impact through the sale of the credits to investors. In turn the proceeds from the sale provide equity to the projects to close financing gaps while transforming communities.
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