Cleveland Development Advisors awarded $35M to continue successful efforts to create jobs, development in Cleveland

Thursday, February 24, 2011

Cleveland, Ohio—The U.S. Department of the Treasury today announced that Cleveland Development Advisors (CDA) has been awarded $35 million in federal tax credits to attract public and private investment capital for projects in the City of Cleveland. With the $35 million New Markets Tax Credit award, CDA - an affiliate of the Greater Cleveland Partnership – will leverage its own capital to attract other public and private investment for economic and business development ventures in Cleveland that will likely create or retain jobs.

“This additional infusion of tax credits will again be used aggressively as we continue to encourage catalytic real estate and economic development projects in the City of Cleveland,” said Yvette Ittu, president of CDA. “Put simply, this welcome allocation will yield high dividends for years to come. Under this program, CDA has already helped create hundreds of millions of dollars worth of urban revitalization and investment projects in Cleveland.”

Being awarded New Markets Tax Credits comes only after a rigorous and highly competitive process. CDA was one of only six recipients in the State of Ohio. This represents the third allocation of New Market Tax Credits received by CDA since 2003. The previous allocations have financed 20 projects, generating over 2,800 permanent jobs, 600 housing units, 570,000 square feet or retail and hospitality space, 390,000 square feet of office space, and 450,000 square feet of industrial space.

CDA will seek to utilize the new allocation of tax credits in economic development projects that build upon the inherent strengths of Cleveland. Opportunities exist in the areas of technology, business and industrial expansion and complementary retail, hospitality and residential projects. Ittu said CDA will collaborate closely with the City of Cleveland and other stakeholders to make strategic investments.

Mayor Frank Jackson said: “The news today of a $35 million New Markets Tax Credit allocation to Cleveland Development Advisors is another signal that Cleveland is gaining economic momentum. Tax credit financing, afforded by the allocation, together with local bank commitments and city investments will make high profile job-producing developments feasible in our neighborhoods and downtown.”

GCP President and CEO Joe Roman agreed. “This welcome award of tax credits is yet another jolt of energy for a Cleveland economy that is attracting national attention because it is growing more dynamic and diverse by the week,” he said. ”This allocation, combined with more than $150 million already invested by CDA since 1989, reinforces the Cleveland business community’s commitment to investing in our city and will compliment the more than $2 billion in development taking place in our city today.”

Roman also recognized the efforts of Mayor Jackson, Senator Sherrod Brown, retired Senator George Voinovich, Congressman Steve LaTourette and Congresswoman Marcia Fudge for their help in securing the tax credit.

Some of the projects that have benefitted from CDA’s investment of New Market Tax Credits include:

  • The East 4th Street neighborhood
  • Battery Park and Capitol Theatre in the Detroit Shoreway neighborhood
  • The adaptive reuse of the White Motor Company site into the Shoreway Commerce Park
  • Lab and office space for medical start-ups and tech companies along Euclid Avenue
  • The Rosetta headquarters at 629 Euclid Avenue
  • Nottingham Spirk Innovation Center
  • Arbor Park Plaza in the Central neighborhood
  • The UpTown project in University Circle
  • Historic restoration of 668 Euclid Ave. into apartments and ground-floor commercial space

Bob O’Brien, chairman of the CDA Board, added. “This allocation will allow CDA to continue to advance its mission and to provide the crucial, up front capital that attracts private investment and conventional debt that is relied upon by developers and entrepreneurs who take calculated risks to implement their ideas to make things happen in this city. This is a huge win for Cleveland.”

-end-

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 $154 million and leveraged more than $2.1 billion in new investment dollars into more than 84 strategic real estate development projects. CDA is an affiliate of the Greater Cleveland Partnership (GCP), providing vital investment dollars to assist the GCP in its core mission. Additional information pertaining to CDA and its investments can be seen at www.clevelanddevelopmentadvisors.com .

As an association of business members, the Greater Cleveland Partnership mobilizes private-sector leadership, expertise and resources to create jobs and leverage investment to improve the economic vitality of the region.
 www.gcpartnership.com

 

Back to News