PILLAR: Growing
AGENDA DATE: November 10, 2026
COUNCIL DISTRICT(S): 3
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
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SUBJECT
Title
Authorize a New Markets Tax Credit (NMTC) transaction between the Dallas Development Fund, a Dallas-based Texas non-profit corporation and certified Community Development Entity or a subsidiary thereof (DDF), Cartamundi Dallas and affiliated entities (Cartamundi), and Regions Bank and its subsidiaries thereof (Regions), of up to $11 million of DDF’s $55 million NMTC allocation in support of an expansion project located at 5101 Highland Place Drive, Dallas, Texas 75236 (Project), a qualified project under Section 45D of the Internal Revenue Code of 1986, as amended, as further described in Attachment A, and for DDF to collect related closing costs and annual fees - Financing: No cost consideration to the City
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
On February 11, 2009, the City Council authorized the creation of the Dallas Development Fund (DDF), a Texas non-profit corporation and certified Community Development Entity (CDE), and submission of a New Markets Tax Credit (NMTC) allocation application to the U.S. Department of Treasury’s Community Development Financial Institutions Fund (CDFI) by Resolution No. 09-0461. DDF was most recently awarded $55 million in NMTC allocation during the CDFI’s 2024-2025 allocation cycle. Previously, DDF has been awarded a total of $240 million in allocation from 2009, 2012, 2014, 2017 and 2021 cycles. To date, DDF has closed 28 NMTC transactions involving $260 million in allocation.
Under DDF’s bylaws, in addition to approval by the DDF Board of Directors, any DDF activity involving the use, transfer or allocation of NMTC must also be approved by the City through a City Council resolution indicating the allocation amount ($11 million) and beneficiary of the NMTC subsidy (Cartamundi).
The NMTC Program permits taxpayers to receive a federal income tax credit for making qualified equity investments in designated CDEs. These investments must be used by the CDE for qualified projects and investments in low-income communities, as defined by the NMTC program regulations. The investor’s tax credit totals 39% of the investment and is claimed over a 7-year credit allowance period.
On August 10, 2026, the DDF Board of Directors approved up to $11 million in NMTC allocation to support the Cartamundi Dallas expansion project (“Project”) located at 5101 Highland Place Drive, Dallas, Texas 75236 as a NMTC transaction in accordance with the terms and conditions in the applicable term sheet(s), including authorization for DDF officers to negotiate and execute any document necessary to complete the transaction. A second CDE may provide additional allocation to the Project at a later date.
Cartamundi USA provides high-volume and technologically advanced printing and finishing services for trading card games and related projects. Their Dallas operation (Cartamundi Dallas), which has served as the headquarters of Cartamundi USA since 2009, serves blue chip customers including Wizards of the Coast (a Hasbro company), Ravensburger (Disney partnership), Pokémon, Bandai, and Asmodee, reflecting long term commercial relationships with globally recognized brands. Cartamundi Group is a global, family-owned company, headquartered in Belguim, operating across 50 countries.
The Project consists of a significant capital investment to expand and modernize production capabilities at Cartamundi’s existing manufacturing facility in southern Dallas. NMTC proceeds will be used to help finance the acquisition and installation of equipment, including new high-capacity offset printing presses, cutting lines, and flow-packaging lines, as well as building improvements required to support the new equipment.
The Project will allow Cartamundi to increase production capacity, improve efficiency through advanced printing technologies, and meet growing demand from long-term customers in the global collectibles market. The expansion will support 250 permanent full-time equivalent (FTE) positions, many of which are anticipated to be quality jobs and accessible to individuals without a four-year degree. These jobs address a need in southern Dallas for increased access to stable, high-quality manufacturing jobs as the area has experienced longstanding economic disinvestment and higher unemployment levels.
The Project site is located at 5101 Highland Place Drive in Dallas, Texas. The Project falls within Census Tract 48113016533, which is NMTC-qualified and considered severely distressed per the CDFI Fund based on a median family income 61% of the area median income and an unemployment rate 1.8x the national average.
At stabilization, the Project is expected to retain 120 and create 130 permanent FTEs. This total includes roles such as production operators, press technicians, and quality control operators.
All employees will receive a living wage and/or benefits, earning an average wage of $29.44/hr. Benefits include health insurance (health/dental/vision), retirement with 6% employer match, paid time off, and profit-sharing opportunities. Cartamundi is committed to employee advancement and offers structured training, opportunities for upskilling, and clear pathways to advancement, including offering all employees on-the-job technical training on advanced printing and finishing equipment. Approximately 70% of positions will be accessible without a four-year college degree, consistent with the educational profile of the surrounding community where 87% of adults have less than a four-year degree. Cartamundi will prioritize hiring from the local community, including individuals with barriers to employment. Entry-level production roles will provide structured training and career progression.
NMTC financing helps close a critical financing gap associated with the scale and capital intensity of the planned manufacturing expansion in southern Dallas. Cartamundi has global operations and decided to invest in and grow its workforce in Dallas, despite it being a more expensive location to operate. The Project requires substantial upfront investment in specialized printing and finishing equipment with long useful lives and long-term payback periods. These characteristics materially constrain the Project’s ability to support conventional financing on competitive terms. Without NMTC financing, Cartamundi would scale back or phase the Project over a longer period, delaying job creation and limiting the economic impact on the community.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 11, 2009, the City Council authorized the creation of the Dallas Development Fund (DDF), a non-profit Community Development Entity (CDE) by Resolution No. 09-0461.
On January 13, 2010, the City Council authorized the acceptance of the initial $55 million NMTC allocation by Resolution No. 10-0210.
On January 19, 2010, the Economic Development Committee was briefed on the DDF and the NMTC Program.
On September 21, 2015, the Economic Development Committee was briefed on the DDF and the NMTC Program.
On August 10, 2026, the DDF Board of Directors was briefed on the Project and approved the NMTC transaction.
The Economic Development Committee was briefed by memorandum regarding this matter on November 2, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=16097511&GUID=339F3330-388B-4EBE-B1E8-04620BFEE4CA>
FISCAL INFORMATION
No cost consideration to the City.
OWNER/EXECUTIVE
Cartamundi Dallas
Edghar Cortez do Nascimento, Finance Director NA
MAP
Attached