News release from the City of Fort Wayne:
Key financing piece in place for The Harrison
Mayor Heartened by Completion of New Markets Tax Credits, Ongoing Site Work
Mayor Tom Henry today confirmed that the New Markets Tax Credit component of the financing package for The Harrison has been secured and deployed. With this news, the last section of Harrison Square hits another important milestone along its development path.
These federal tax credits represent an essential portion of the funding for the estimated $18.5 million project that will bring new housing, office and commercial options into downtown Fort Wayne. This element was coordinated by the City of Fort Wayne through its Fort Wayne New Markets Revitalization Fund, working in concert with the principals of New Harrison, LLC, and PNC Bank.
“The Harrison’s private-sector partners are committed to the success of this final piece of Harrison Square,” said Mayor Henry. “The completion of the New Markets Tax Credit process and the ongoing activity on site are strong signals that this exciting addition to downtown Fort Wayne is confidently gaining momentum.”
The Monday announcement precedes the January 17 date designated as the deadline for finishing the New Markets Tax Credit work.
Part of the Community Renewal Tax Relief Act of 2000, the New Markets Tax Credit program is administered by the U.S. Department of Treasury. It creates a tax credit for equity investments in Community Development Entities to encourage location-based development projects. It provides the ability to offer lower-than-market-rate financing products for approved initiatives that advance local economic growth goals. Investors are permitted to take the credit over a seven-year period, at phased rates.
An update from the development team on The Harrison’s progress is anticipated in the near future.
In December, the City wrapped up its preliminary site-preparation work for The Harrison, part of its responsibility under the development agreement to make the setting “build-ready.” At a cost of approximately $80,000, the requirement included removing debris and unsuitable soil from the Jefferson Boulevard at Ewing Street location.
The Harrison is the concluding corner piece of Harrison Square, the private-public initiative composed of the record-breaking Parkview Field, home of the popular TinCaps; a hospitality-sector boosting Courtyard by Marriott hotel; a convenient 900-space parking garage; and the scenic Robert E. Meyers Park. Flourishing from the outset, this signature, city-center development has become a major economic-activity generator for the entire region.
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So will the city admiunistration now make public the total cost to the non-private financing of this project? Including city, county, state and federal tax support?
And how can the city make a statement like “this is the concluding corner piece” when, in the original plans for Harrison Square, two more “phases” were part of the sales-job done to our city council?
I still say it’s a BOONDOGGLE!