Public-Private Partnership Creates Jobs, Housing, Retail
CINCINNATI, Nov. 5, 2013 /PRNewswire-USNewswire/ -- Finance Fund has awarded $8 million in federal New Markets Tax Credit (NMTC) financing for the construction of a $53-million mixed-use development near Xavier University. The project has been in development for six years and includes retail, residential units, office space and parking plus the infrastructure needed for future phases.
This first phase will create 225 permanent FTEs within two years of project completion and 200 construction jobs in in a census tract that has a 32.8 percent poverty rate, a median family income of 43.8 percent and unemployment approaching 10 percent.
"We are pleased to provide $8 million in New Markets Tax Credit financing for such an impactful project," said Finance Fund President and CEO James R. Klein. "University Station is a cornerstone of economic development for this area and will support further expansion and job creation by attracting additional private investment."
The first development phase is a 15-acre mixed-use project near Xavier University's campus which will be completed by August 2014. This phase includes 176 housing units of student housing, 39,000 square feet of retail, 46,000 square feet of office and more than 1,000 parking spaces. A portion of the housing units will be designated as affordable units for qualifying neighborhood residents such as single working parents enrolled as part-time students at Xavier University.
The University Station site, owned by Xavier University, will be developed in collaboration with Messer Construction and Ackermann Group. Finance Fund is one of five participating Community Development Entities providing federal NMTC allocations: Cincinnati Development Fund, Enterprise Community Investment, Inc., The Community Builders, Inc. and US Bank Community Development Corporation. The award enables Xavier University to bridge the University with the neighboring Norwood and Evanston communities that were economically devastated by a chemical explosion and plant closing.
The project points to the importance of the federal New Markets Tax Credit Program. "The effective, targeted and cost-efficient NMTC financing tool provides financial incentives to lenders to provide access to capital that grows business, creates jobs and sustains healthy economies in impoverished communities across the U.S.," Klein said.
About Finance Fund (www.FinanceFund.org)
Since 1987, Finance Fund and its affiliates have invested more than $258.8 million in housing, economic development, and community facility projects leveraging over $1 billion. This investment was accomplished through 2,847 awards to community-based organizations throughout the state. Finance Fund provides debt and equity to its clients through the management of 19 entities totaling $200 million. Partnerships have enabled low-income people access to 15,514 units of affordable housing, 18,417 direct jobs, and 3,036 early care and education spaces (classrooms) for 69,497 children benefiting the lives of over 127,000 Ohioans.
About New Markets Tax Credits (www.cdfifund.gov)
The NMTC program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in investment vehicles known as Community Development Entities (CDEs). The credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year period. CDEs must apply to the Treasury Department's Community Development Financial Institutions Fund (CDFI Fund) to compete for this allocation authority.
SOURCE Finance Fund