STRATEGIC PRIORITY: Economic Development
AGENDA DATE: February 26, 2025
COUNCIL DISTRICT(S):|910|DEPARTMENT: Office of Economic Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize a New Markets Tax Credit (NMTC) transaction between the Dallas Development Fund, a Dallas-based Texas nonprofit corporation and certified CDE or a subsidiary thereof (DDF), St. Philip's School and Community Center and Capital One, National Association and its subsidiaries thereof, of up to $7 million of DDF's $55 million NMTC allocation for a project located at 1600 Pennsylvania Ave, Dallas, Texas (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
Body
BACKGROUND
On February 11, 2009, the City Council authorized the creation of the Dallas Development Fund (DDF), a Texas nonprofit 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 2021 allocation cycle. Previously, DDF has been awarded a total of $185 million in allocation from the 2009, 2012, 2014, 2017 cycles to date, DDF has closed 24 NMTC transactions involving $222 million in allocation.
Under DDF's bylaws, in addition to DDF board approval, 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 ($7 million) and beneficiary of the NMTC subsidy St. Philip's School and Community Center (St. Philip's).
The NMTC Program permits taxpayers to receive a federal income tax ...
Click here for full text