News from City Hall
City Council Office
City of Kansas City, Mo.
CONTACT: Kim Randolph, aide to Councilwoman Sanders Brooks, (816) 513-1608
FOR IMMEDIATE RELEASE: Nov. 13, 2009
Tax credit program helps projects in city’s distressed communities
3rd Council District benefits from incentivized development
The City’s recently announced $35 million in New Markets Tax Credit allocation authority will continue to benefit and provide much needed incentive for investment in the 3rd Council District and other distressed communities citywide.
Having been awarded $40 million in New Markets Tax Credit in 2008, the City’s Community Development Entity, KC CDE, has been actively seeking out businesses and development projects in the city’s underserved, distressed communities that could benefit from the New Markets Tax Credit program. One area of the city that has seen a number of businesses and development projects considered by the KC CDE is the 3rd Council District, all of which is eligible under the New Markets Tax Credit program.
“This program is so valuable because it represents a long-term commitment to development and growth in an area where economic activity is needed,” said Sharon Sanders Brooks, City Councilwoman, 3rd District, and chairwoman of the City’s Housing Committee. “A vibrant urban core is crucial to the overall health of the City, and this program helps reach that goal.”
From the KC CDE’s $40 million in tax credits awarded in 2008, three projects in the 3rd District have received an allocation commitment from the KC CDE totaling $21 million. The three projects include the JD Wagner Unit of the Boys & Girls Club of Greater Kansas City located on 2405 Elmwood Ave., which will include the renovation of the old Minute Circle Friendly House building as well as new construction to create a new community center that will house a gym, indoor pool, computer lab, art room, multi-purpose space, and many other classrooms; the Aldi grocery store on 39th Street and Prospect Avenue; and Posty Cards, Inc., a 60 year old Kansas City, Mo. based business to business greeting card company, which will be developing a new LEED Gold certified fabrication facility located at 1600 Olive St.
Each of the projects were approved for New Markets Tax Credit facilitated financing by the KC CDE based in large part on their potential to provide critical services and goods as well as create job and workforce development opportunities in the communities in which they are located. All of the projects are slated to be completed in 2010.
In addition to supporting businesses and development projects, the New Markets Tax Credit program has allowed the KC CDE to support other efforts to stimulate investment in low-income communities in Kansas City, Mo. Partnering with a number of technical service providers in Kansas City, Mo. including the First Step Fund, the KC CDE has been able to provide scholarships to residents of low-income communities to participate in First Step FastTrac entrepreneurship training, in which 20 participants are currently enrolled this fall, six from the 3rd District.
Created in 2001, the New Markets Tax Credit program, which until recently has been underutilized in Kansas City, Mo., has been a critical financing resource to low-income communities throughout the country. With the recent success of awards as well as deployment into the community, the KC CDE’s track record will enhance its ability to get future awards to continue to direct needed investment capital to low-income communities citywide.
For more information about the New Markets Tax Credit program and to learn if a project or business is eligible for assistance under the program, please contact Ruben Alonso III, New Markets Tax Credit Program Manager, at 816-513-1021.