Economic Development Committee asks Council to approve projects
The Dallas City Council was briefed on the key elements of the New Market Tax Credit Program (NMTC) and asked to approve two potential NMTC projects, C.H. Guenther and Resource Centers.
The NMTC is a federal tax credit program that attracts private investment for business and real estate developments in low-income neighborhoods.
The NMTC targets commercial, industrial, not-for-profit, operating businesses and mixed use development. Community Development Entity (CDE) must be formed to apply for program. The City created Dallas Development Fund (DDF) in 2009 as a non-profit CDE to apply, accept and allocate NMTC allocations.
Current allocations include $45 million awarded in the most recent award cycle and $11.5 million allocated to The Family Place, approved on Jan. 13. Up for council consideration is $8 million for C.H. Guenther, $6.5 million to be considered for Resource Center and $19 million remaining for future projects.
C.H. Guenther is a manufacturer of grain-based food products, gravies, sauces and seasonings for retail, foodservice and industrial customers with 2,000 employees at 16 manufacturing facilities worldwide. The proposed NMTC Project would retrofit and equip a vacant 134,000 square foot Dallas Morning News building built in 2008.
Another project in the works is a new Community Center and rehabilitation of Reagan and Brown building. The resource center serves more than 60,000 persons each year, including 2,700 low-income persons through HIV services with a $5.8 million annual operating budget. Dallas County has highest HIV rate per capita in Texas. The project would complete construction of a 20,000 square foot new community center to consolidate youth and senior programs, administration, mental health, event and meeting spaces.
The Economic Development Committee is requesting approval of CH Guenther and Resource Center Projects prior to full Council consideration on Feb. 24. DDF Board unanimously approved both projects on Jan. 27.