October 2007

Downtown Atlanta Wins Major Revitalization Award

The U.S. Department of Treasury announced that Atlanta has been awarded $60 million in the 2007 New Markets Tax Credits Program. This allocation has the potential to leverage more than $100 million in new investment in a four square mile area around Peachtree Street’s Woodruff Park in Downtown Atlanta.

"An essential part of the application process was to demonstrate a show of support from national financial institutions," said City of Atlanta Mayor Shirley Franklin. "The overwhelming vote of confidence we received from these institutions serves as an endorsement of the city’s economic development efforts, particularly in downtown."

Tom Bell, Central Atlanta Progress board chairman, said, "Atlanta has been chosen as one of only a few cities nationally to receive these funds. That is very satisfying. It centers on downtown Atlanta's longtime national reputation for delivering regular successes through public-private ventures."

The NMTC Program was established by Congress in 2000. This annual program of the U.S. Treasury Department's Community Development Financial Institutions Fund has become increasingly competitive, drawing applications from financial institutions, developers, cities, counties and states. To date, the Fund has conferred 233 awards totaling $12.1 billion. In 2007, it will award $3.9 billion in tax credits nationwide to organizations investing in rural and urban low-income communities.

"A major initiative of the City’s economic development plan is to attract more capital – we are thrilled with this win," said Peggy McCormick, president of the Atlanta Development Authority. "We have many people to thank. The wonderful team at CAP, our first in-house general counsel Ken Neighbors and our director of Commerce and Entrepreneurship Charles Whatley worked ’round the clock this spring to make this happen. We also thank Congressman John Lewis and Sens. Johnny Isakson and Saxby Chambliss for their support of our application."

A.J. Robinson, president of Central Atlanta Progress, said, "This is exciting news. It validates the strength and belief in our economic partnership with the Atlanta Development Authority that we have forged through Mayor Franklin’s administration. The funds will allow us to turn new visions for our downtown neighborhood into realities."

NMTCs translate into the ability to purchase $1 in federal tax credits for only 37 cents. This credit enables lending institutions to finance a wider variety of capital projects. Investors can add to the financing of a development by layering NMTCs with other financial incentive programs such as tax allocation district subsidies and historic tax credits.

The area that will benefit from these tax credits is bounded by Northside Drive to the west, North Avenue to the north, Boulevard to the east and I-20 to the south. Also known as the "Imagine Downtown" footprint, this area encompasses the jurisdiction of Central Atlanta Progress and includes parts of the City of Atlanta’s Eastside and Westside tax allocation districts. In addition to this capital project, a portion of Atlanta’s $60 million allocation is reserved for small business loan programs. All of these programs will be administered by ADA.

"We knew we had a 1-in-10 chance of being successful in our initial allocation," said Kwanza Hall, the city councilman representing downtown. "It was a very competitive process, and we won on the merits of potential future downtown projects."