City receives $60 million in federal funding for economic development projects
Invest Atlanta, the city’s economic development arm, has received $60 million in New Markets Tax Credit (NMTC) allocation from the U.S. Department of the Treasury to provide gap financing for economic development projects in low-income areas.
Congress established the NMTC program in 2000 to attract investment to areas with low median income and high unemployment. The NMTC program takes private equity contributed by investors and turns it into gap financing for redevelopment projects. Investors receive non-refundable tax credits in exchange for an equity investment in a local project that demonstrates meaningful community impact.
“We are pleased to see the Treasury Department continues to recognize the impact New Markets Tax Credits are making on economic revitalization and job creation in the City of Atlanta,” said Dr. Eloisa Klementich, President and CEO of Invest Atlanta. “Invest Atlanta continues to receive higher award amounts with each application, which has enabled us, through Atlanta Emerging Markets, to invest in 22 projects since 2010 that have created more than 3,250 jobs in areas that are often overlooked by conventional capital markets.”
“This latest New Markets Tax Credit award is one of the largest in the country and will provide additional funding to stimulate investment for residents in parts of our city where greater economic opportunity is needed most,” said Mayor Keisha Lance Bottoms.
Some of the recent investments include:
Pittsburgh Yards: A $6.5 million AEMI investment to help finance redevelopment at 352 University Avenue in Southwest Atlanta. The project led by the Annie E. Casey Foundation will create a vibrant, living-wage ecosystem that clusters a range of businesses together, including industrial, office, administrative, artistic and creative enterprises.
Grady Memorial Hospital: A $12 million investment to help finance Grady’s $76,000,000 expansion and renovation of its new Emergency Department building. The recently dedicated Marcus Trauma and Emergency Center will serve 20,000 additional patients annually.
Families First: An $8.5 million investment to convert a former Atlanta Public Schools building in Atlanta’s Westside into the organization’s new 38,000 square-foot headquarters. The new building will enable Families First to serve 52,000 children, women and families a year, many of whom report income well below the poverty line.
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