Department Of Treasury Awards Wachovia $105 MIllion New Markets Tax Credit Allocation
CHARLOTTE, N.C. — Wachovia announced today that it received a $105 million allocation of New Markets Tax Credit (NMTC) authority in the latest round of awards. Wachovia has received awards in four of the program’s five allocation rounds to date. This brings Wachovia’s total awards under the program to $488 million.
U.S. Treasury Deputy Secretary Robert M. Kimmitt and Treasury’s Community Development Financial Institutions (CDFI) Fund Director Kimberly A. Reed announced Wachovia’s selection at a ceremony in New Orleans. Out of 258 applicants, 61 organizations nationwide received $3.9 billion in NMTC authority. Awards ranged from $12 million to $133 million; Wachovia received the eighth largest award.
Wachovia’s allocation allows it to continue the momentum of its successful NMTC program. To date, the company has invested or committed $484 million in NMTC to businesses operating in low-income communities across the U.S.
Created by Congress in 2000, NMTC is a federal tax program designed to help spur investment in businesses located in lower-income communities. It is widely considered to be the most significant federal community development program since the creation of the Low Income Housing Tax Credit (LIHTC) program was announced in 1986.
Wachovia has joined with other community development organizations to advocate for extending the NMTC program, which is set to expire in 2008.
“We’re thrilled that Wachovia’s NMTC program stood out in an incredibly competitive selection process,” said Wanda Clark, director of Wachovia’s New Market Tax Credit Program. “This new award is a strong endorsement of our leadership role with NMTC. With these funds, we can expand the access to capital for many of our low-income communities, creating momentum that can help revitalize entire neighborhoods.”
In addition to investing its own NMTC allocation, Wachovia has invested $156 million in the projects of nine other NMTC allocation recipients.
Recent NMTC developments Wachovia has invested in include:
* JREI/Decatur Street in Atlanta, Ga. - $7.5 million NMTC investment
Wachovia is investing in the renovation of a three-story, 40,000 square foot commercial office building, build-out funding for 12,000 square feet of unfinished office space, and infrastructure improvements for an adjacent 40,000 square foot factory building on Decatur Street in Atlanta. The development will create jobs in a neighborhood where the poverty rate is 55 percent and will be the home of Johnson Research and Development Corp., Excellatron Solid State, and Johnson Electro-Mechanical Systems.
* Park Place in the West End in Greenville, S.C. - $7.3 million NMTC investment
This 54,900 square foot building in Greenville, S.C., is the first office building constructed in this low-income neighborhood in 20 years and an important part of the city’s redevelopment plan. The building is anchored by New York Life Insurance and includes retail space and restaurants. The development adds 200 permanent jobs to the neighborhood.
* Park West Town Center in Philadelphia - $17.66 million NMTC investment
This 340,000 square foot facility, currently under construction in a West Philadelphia low-income community, will be anchored by a Lowe’s Home Improvement store and will include a Shop-Rite supermarket, a Wachovia financial center, and a mix of small retail stores and restaurants. The development will convert a former railroad yard into a vibrant retail center, clean up a former brownfield site, create hundreds of construction and permanent jobs, and attract needed services to a community that has long been underserved.
* Riverbend Corporate Park in Fort Lauderdale, Fla. - $15.6 million NMTC investment
This 67,000 square foot facility is part of a larger office park located in a low-income community that will create construction jobs for a five- to seven-year build-out period. The Wachovia-funded facility will result in more than 300 permanent office jobs.
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