Investment in Cleveland is on the rise and Cleveland is poised for even greater heights. Cleveland Development Advisors (CDA) recently announced it has received a $60 million federal award to attract private investment and spark economic growth in the region. “It’s an exciting time for Cleveland and our region has made incredible strides over the last few years, but we certainly can’t stop there. The $60 million in federal tax credits will help us to continue this positive momentum well into the future,” said Joe Roman, CEO of the Greater Cleveland Partnership.
The city has been on an upward trajectory since its hosting of the Republican National Convention (RNC) and recent back-to-back professional sports championships. There is a lot of activity here and Clevelanders are excited. Whether its downtown or the suburbs, everywhere you look there is something going on. Last October for instance, a $60M mixed-use construction project began to revitalize the Ohio City neighborhood.
The New Markets Tax Credit (NMTC) program was signed into law as part of the Community Renewal Relief Act of 2000. The goal of this bi-partisan initiative was to inject economic development to facilitate urban renewal projects in low-income and distressed cities around the country.
As a result of the NMTC program, approximately 750,000 jobs were created nationwide over a nine-year span from 2003-2012. “Simply put New Market Tax Credits work. Previous allocations have leveraged more than $796 million in investment in the City of Cleveland resulting in more than 5,000 permanent jobs and 1,104 housing units,” noted Congresswoman Marcia L. Fudge (OH-11).
According to the CDA which is an affiliate of the Greater Cleveland Partnership, it is expected that this tax credit will result in hundreds of millions of dollars worth of new projects in the city. Cleveland has received these tax credits before and has put them to good use through the financing of more than thirty projects that have generated over 5,000 permanent jobs. Also, more than 1,000 residential units and 2.6 million square feet of commercial space was made possible through NMTC.
“As exciting as this federal award is, it is important to keep in mind that it is given to distressed cities. While Cleveland has made considerable progress, there is a long way to go before it is no longer on the distressed list,” said Victor J. Bierman III, Ohio lawyer and business expert. Through these types of public-private investments, Cleveland is well on its way to being recognized as the world class city it truly is.
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