FORT WAYNE, Ind. (ADAMS) – Mayor Tom Henry has announced the City of Fort Wayne New Markets Revitalization Fund, LLC (FWNMRF) will receive $45 million in New Markets Tax Credits allocation authority.
Over 230 Community Development Entities (CDE) applied for New Markets funding from the U.S. Treasury Department, while only 107 were awarded an allocation. This is the fourth time that FWNMRF has been awarded an allocation, bringing the total tax credit allocation awarded to Fort Wayne New Markets to $148 million.
The City released the following:
“We’re fortunate to be in position to be awarded these important New Markets Tax Credits through proactive and strategic work and leadership at the local level.” said Mayor Henry. “Fort Wayne and northeast Indiana are leading the way to make a lasting and meaningful difference with projects and initiatives that are helping 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. “This latest allocation provides us with another mechanism for economic development and growth opportunities that can benefit all of northeast Indiana.”
Examples of previous projects supported by FWNMRF include The Harrison and the Plassman Athletic Center at Turnstone. 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 two years. 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.
