New Markets Tax Credits allowed National Development Council (NDC) in partnership with the City of Ithacato finance an infill project which includes the demolition of a vacant manufacturing facility in downtown and the new construction of a mixed use building on the site. The five story 54,000 sq. ft. new building will contain 8,600 sq. ft. of commercial space on the first floor and 39 one bedroom market-rate one and two- bedroom apartments on the top floors, over a parking garage. This type of project exemplifies what is advocated by the downtown Ithaca Strategic plan, to create housing and office space in a downtown environment, promoting urban infill and densification as a viable competitive alternate to urban sprawl. The project is located in a non-metropolitan low-income community with a poverty rate of 30.1%, it is also a Urban Renewal Area. Seneca Way projects the creation of 60 construction jobs, 19 FTEs and 14 PTEs. Construction is expected to be completed by December 2013.
“NDC is proud to partner with the City of Ithaca as it continues its efforts to revitalize the local economy and create jobs” says Robert W. Davenport, CEO. “The closing of Seneca Way marks our third collaboration with the city using New Markets Tax Credit as the financing vehicle –this redevelopment project is critical to the continuing growth of the downtown area. We look forward to the intrinsic community and economic impacts Seneca Way will certainly contribute to the city of Ithaca.”
The National Development Council (NDC) is the oldest national non-profit community and economic development organizations in the U.S. It was founded in 1969 with one purpose: increasing the flow of capital for investment, jobs and community development to under served urban and rural areas across the country. Since that time, NDC has worked with thousands of communities in every one of the 50 states and Puerto Rico, providing technical assistance, professional training, and investment in affordable housing, small business financing and direct developer services. NDC has been using New Markets Tax Credits (NMTC) to support economic and community development since the program’s inception. NDC not only provides tax credit equity to our client communities, but also assists communities in structuring their NMTC deals, finding the necessary additional financing, and developing relationships with other organizations that receive allocations of the tax credits. To date NDC has invested over $607 million in 75 projects generating over $1 billion in total investment.www.nationaldevelopmentcouncil.org
About the New Markets Tax Credit Program
The New Markets Tax Credit (NMTC) Program was established by Congress in 2000 to encourage the investment of private capital in designated low-income communities in order to create jobs, generate economic activity and improve the quality of services in low-income communities and to low-income persons. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making qualified equity investments in specialized financial institutions called Community Development Entities (CDEs). Capital raised by the CDEs is then used to provide below-market financing to qualified businesses in low-income communities. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. For more information, visit www.cdfifund.gov.