PHILADELPHIA – The U.S. Treasury will transmit $50 million in New Market Tax Credits to the Philadelphia Industrial Development Corporation. This is part of a national $3.6 billion NMTC package allocated to 70 organizations nationwide. The objective is stimulating real estate and local business development, which should translate into jobs creation.
“This funding,” announced Mayor Michael Nutter, “will help the City spur greater private investment in our neighborhoods and to encourage developers to think creatively about new development ideas. I would also like to congratulate The Reinvestment Fund, Inc., which will receive $42 million of NMTC allocations.”
The city has a long history of using federal funds and tax incentives to revitalize blighted neighborhoods project by project, block by block, and zone by zone. Congresswoman Allyson Schwartz, who advocated the grant to PIDC, remarked, “These funds will support the construction of new supermarkets, health care facilities, and commercial corridors that are critical to reinvigorating Philadelphia communities.”
Similar funding to the tune of $60 million was granted to PIDC in 2007. Those tax credits leveraged more than $127 million in project financing and created more than 700 permanent and construction jobs. The results are the Superfresh market and retail complex (opened last year at 2nd Street and Girard Avenue), mixed-use redevelopment at 600 No. Broad Street, tenant fit-out for laboratory and office space at the University City Science Center, and the construction of the Hilton Homewood Suites in West Philadelphia.
“PIDC,” said organization President John Grady, “is delighted to have been selected for an allocation of credits through this highly competitive application process.”
In addition to tax credits, PIDC provides low interest loans from $75,000 to $100 million and access to a number of federal, state, and local grant programs. For more information about eligibility for New Market Tax Credits, contact PIDC’s market development group at 215.496.8157. For general information about the organization, visit www.pidc-pa.org.
The Reinvestment Fund, Inc., as mentioned by the mayor, was likewise on the receiving end of NMTCs. TRF started out in 1985 as a small organization dedicated to developing communities in the Greater Philadelphia region. It is now a leader that has financed 2,630 projects and delivered more than $1 billion of capital across the Mid-Atlantic area. TRF invests in homes, schools, fresh food access, and sustainable energy via low-interest loans. New tax credits of $42 million will surely trigger further interest in community development. For more information about TRF, visit www.trfund.com or call 215.574.5800.
Treasury Deputy Secretary Neal Wolin declared, “The tangible results of the New Market Tax Credits that I saw in New Orleans are strong proof that this program makes a real difference. With an economy still recovering from the worst recession in generations (which has exacerbated the challenges low-income communities already face), this program is more important than ever.” For more info, visit www.cdfifund.gov or www.treasury.gov.
All rights to this article are reserved by Gloria Blakely. Copyright 2012.