FORT WAYNE, Ind. (ADAMS) – On Monday, Mayor Sharon Tucker announced the City of Fort Wayne New Markets Revitalization Fund, LLC (FWNMRF) will receive $50 million in New Markets Tax Credits allocation authority.196 Community Development Entities (CDE) applied requesting a total of nearly $15 billion in New Markets funding from the U.S. Treasury Department, while only 104 were awarded a share of the federally authorized $5 billion allocation.
The City released the following:
This is the sixth time that FWNMRF has been awarded an allocation, bringing the total tax credit allocation awarded to Fort Wayne New Markets to $233 million and the third consecutive year FWNMRF has been awarded an allocation.
“As we work to provide an enhanced quality of life for all, the awarding of funds to our community through New Markets Tax Credits is a major win for us,” said Mayor Tucker. “The allocation positions our city and region for sustained growth and success as we work together to provide unique projects and opportunities that will make a lasting difference.”
“The staff of FWNMRF is both honored and humbled to learn of the unprecedented third allocation award in consecutive years,” said Sharon Feasel, director of FWNMRF. “In the organization’s first 14 years of existence FWNMRF won an award three times totaling $103 million. To now be granted allocation awards three years running, with total deployment authority of an additional $130 million is evidence of the trust the U.S. Treasury has in the strategic deployment exercised by FWNMRF to fund projects providing significant community benefits to areas of historic disinvestment.”
Community Development Entities like the Fort Wayne New Markets Revitalization Fund compete for limited allocations on an annual basis.
Examples of previous projects supported by FWNMRF include The Harrison, Plassman Athletic Center at Turnstone, the YWCA Hefner Center, Bridge of Grace Early Learning Center, and the renovation of the Ward Education Center for Neighborhood Health’s new southeast multipurpose health clinic. 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 private sector 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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