$50M federal award to CDA to spur economic growth in city by attracting private investment
CLEVELAND – Cleveland’s renaissance got a $50 million federal infusion that will be leveraged to help develop 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 often used to fill financing gaps but also attract large amounts of private investment. CDA had previously been awarded a total of $105 million from this program that has been used to spur more than $660 million in investment in Cleveland.
“This is a good day for Cleveland,” said CDA President Yvette Ittu. “These tax credits can mean the difference between large, catalytic projects in the city’s core and neighborhoods moving forward or not. This award will trigger sound, impactful projects valued at hundreds of millions of dollars.”
Previous allocations of the tax credits to CDA have helped to finance 30 projects resulting in more than 4,800 permanent jobs, 1,296 housing units and more than 2.6 million square feet of commercial space.
The award was made after a very competitive national competition. Of 263 applicants, just 76 were awarded the tax credits from the U.S. Department of the Treasury.
CDA’s success in receiving another round of tax credits was applauded throughout the city today.
Cleveland Mayor Frank G. Jackson said: “The award of $50 million in New Market Tax Credits to Cleveland Development Advisors is a great opportunity that will leverage private investment in neighborhoods of the city where multiple sources of financing are required for development projects to become realities. Because of this award, strategic citywide development projects will result in jobs and new residential opportunities.”
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 the CDA has used the tax credits include The 9, a bustling urban hive of activity that includes a renovated historic rotunda that is now a Heinen’s grocery store and the conversion of a long-shuttered office building into office space and mixed income apartments. Other projects have included expansion of Steelyard Commons, the redevelopment of the St. Luke’s Campus and the conversion of the abandoned Fairmont Creamery in Tremont into a thriving residential and commercial development.
Joe Roman, president and CEO of the Greater Cleveland Partnership, said the award of the tax credits will maintain and grow the city’s momentum.
“Cleveland is on a roll right now but we have to work hard to keep moving forward,” Roman said. “This $50 million in federal tax credits will help propel us to the next stage of our multi-billion dollar resurgence. “
Ohio elected officials echo the good news for Cleveland:
“Cleveland Development Advisors has a proven track record in helping to leverage private and public financing in order to create jobs and promote economic growth,” Brown said. “This tax credit will help build upon Ohio’s existing strengths and bring new economic growth to the region.” – US Senator Sherrod Brown
“This is good news for the city of Cleveland because it will allow us to move forward on projects that support job growth, investment, and neighborhood revitalization,” Portman stated. “This will have a positive impact in northeast Ohio and I will continue to work to advance economic development in our community.” – US Senator Rob Portman
“I’m proud to support these efforts, because these tax credits will have a real, positive impact on Cleveland and the surrounding communities. These funds are proven to create jobs, spur economic growth and serve as a rising tide for these communities. That’s something we can all agree on." – Congressman Dave Joyce
“I am pleased the Cleveland New Markets Investment Fund, LLC and the Development Fund of Western Reserve have been chosen to receive tax credit allocation authority under the 2014 New Markets Tax Credit (NMTC) Award program. I have always been a vocal advocate of NMTCs, which are essential to the revitalization of low-income communities across the country. In order to receive the allocation, participating organizations must agree to make at least 75% of their investments in severely distressed communities or communities with high unemployment rates. I applaud the U.S. Treasury Department for continuing to support communities in need, and congratulate northeastern Ohio’s community development organizations for contributing to the economic success of our region and its people.” -Congresswoman Marcia Fudge
“As a former small business owner, one of my top priorities is to stimulate economic and employment growth for Ohioans. I am thrilled to see that Cleveland Development Advisors (CDA) – an organization with this same priority – has received funds through the New Market Tax Credit to make this mission a reality. I supported this allocation because I believe that inciting new investments will create a competitive market and increase the welfare of Ohioans. CDA has a history of using these funds to turn projects into landmarks, like The Fairmont Creamery in Cleveland, and I know that we will only see further growth in Ohio’s economy with these newly allocated funds.” – Congressman Jim Renacci
About Cleveland Development Advisors
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 $250 million and leveraged $2.7 billion in new investment dollars into more than 110 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.