November 21, 2016 The positive momentum in Cleveland is expected to continue as the region received a $60 million federal tax incentive that will help drive new projects in the city estimated to be valued at hundreds of millions of dollars.
The award of federal New Market Tax Credits to Cleveland Development Advisors (CDA) – an affiliate of the Greater Cleveland Partnership – is an invaluable leveraging tool in advancing the city’s revitalization. The tax credits are used to attract private investment needed to complete catalytic projects that create positive economic impacts in Low Income Communities, including workforce development, quality employment and neighborhood revitalization. CDA had been awarded a total of $215 million since the program’s inception.
“The New Markets Tax Credit is an incredibly important economic development tool that has already helped so many people in this community and has given such traction to Cleveland’s renaissance,” said Yvette Ittu, President of CDA. “We intend to continue this momentum. There is so much more to do. CDA is geared up to continue to catalyze developments that create jobs, grow businesses and have a significant impact on the lives of those in our community.”
CDA has utilized $155 million in prior allocations to spur more than $796 million in investment in Cleveland, financing 36 projects resulting in nearly 5,000 permanent jobs, 1,104 housing units and more than 2.6 million square feet of commercial space.
The award was made after a very competitive national competition. Of 238 applicants, just 120 were awarded the tax credits from the U.S. Department of the Treasury.
This is both a significant win for CDA and the city of Cleveland.
CDA will collaborate with the city and other partners to use the tax credits on strategic projects that result in catalytic developments that revitalize the city’s core, enable business attraction and expansion, advance community initiatives and meet neighborhood needs.
Some of the projects where CDA has used the tax credits include The Snavely Group's $60 million redevelopment of the northwest corner of West 25th Street and Detroit Avenue, where the Music Settlement will be joined by apartments, a small grocery store and other commercial tenants. Other projects include Lincoln Electric's new welding technology center in Euclid and a new Saint Martin de Porres high school in Cleveland's St. Clair-Superior neighborhood.
Joe Roman, President and CEO of the Greater Cleveland Partnership, said the award of the tax credits will be instrumental in helping to continue the city’s revitalization.
“It’s an exciting time for Cleveland and our region has made incredible strides over the last few years, but we certainly can’t stop there,” Roman said. “The $60 million in federal tax credits will help us to continue this positive momentum well into the future.”
Ohio elected officials echoed the good news for Cleveland:
“Community development entities across Ohio are working to spur growth in our communities and the New Market Tax Credit gives them the boost they need to attract private investment. This credit will give the Cleveland New Markets Investment Fund the ability to create jobs and lift up the local economy.” – U.S. Senator Sherrod Brown.
“This award will allow Cleveland Development Advisors to build on their great work of encouraging more economic development in Northeast Ohio. I look forward to seeing the commercial development, neighborhood revitalization, and additional job opportunities for those in need that will result from more of their New Markets Tax Credit projects materializing.” – U.S. Senator Rob Portman
“Simply put, New Market Tax Credits (NMTC) work. Previous allocations have leveraged more than $796 million in investment in the City of Cleveland resulting in almost 5,000 permanent jobs and 1,104 housing units. I applaud the Greater Cleveland Partnership for their continued commitment to our communities through NMTCs and will continue to advocate for this critical economic development tool." – Congresswoman Marcia Fudge
“Encouraging private investors to help businesses and local communities is an effective and innovative way to rebuild the country's economy. New Market Tax Credits allows businesses, communities, and investors to work together and will have a positive impact on the Northeast Ohio region as a whole." – Congressman David Joyce
“The Greater Cleveland Partnership has been a leader in revitalizing the Northeast Ohio community and its economy. With the announcement of the $60 million New Market Tax Credit, they can continue to make strategic investments in Cleveland neighborhoods, making it one of the best areas in the country to live and work. I congratulate GCP on the award and thank them for investing so much time and effort into Northeast Ohio.” – Congressman Bob Gibbs
Cleveland Development Advisors (CDA) manages private-sector investment capital raised to advance economic and community development in the city of Cleveland. Since its inception in 1989, CDA has directly invested more than $326 million and leveraged $3.1 billion in new investment dollars into more than 121 strategic real estate development projects. CDA is an affiliate of the Greater Cleveland Partnership (GCP), providing vital investment dollars to assist GCP in its core mission. Additional information regarding CDA and its investments can be viewed at www.clevelanddevelopmentadvisors.com.