Atlanta Mayor Keisha Lance Bottoms has announced that Invest Atlanta has received $60 million in New Markets Tax Credit allocation from the U.S. Department of the Treasury.
According to a press release, the funds will provide gap financing for economic development projects that help create jobs and revitalize neighborhoods in Atlanta.
According to the release, this is the sixth time the award has been given to Invest Atlanta in the last 10 years. Atlanta Emerging Markets, Inc. (AEMI), Invest Atlanta’s New Markets Tax Credit (NMTC) entity, will use the money to fund catalytic development projects in low-income areas.
“My administration is committed to increasing prosperity for all through our city’s economic development efforts, while steadfastly working to improve equity and affordability in our communities,” Bottoms said. “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.”
Started by Congress in 2000, the NMTC program takes private equity contributed by investors and turns it into gap financing for redevelopment projects, the release said. Investors receive non-refundable tax credits in exchange for an equity investment in a local project that demonstrates meaningful community impact.
This year, 230 community development entities applied for $3.5 billion of available NMTC allocation, and 73 organizations received funding.
“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,” Eloisa Klementich, president and CEO of Invest Atlanta, said. “Invest Atlanta continues to receive higher award amounts with each application, which has enabled us, through AEMI, 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.”
Some of AEMI’s recent NMTC investments include $12 million for Grady Memorial Hospital, $6.5 million for redevelopment at Pittsburgh Yards in Southwest Atlanta and $8.5 million to convert an old APS building into a new headquarters for the Families First organization.