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| Date: |
4/4/2007 |
| Contact Name: |
Marty Dougherty |
| Number: |
712-279-6345 |
Innovative Financing Assisted Sioux City NWA Reservation Center Project
Innovative Financing Assisted Sioux City NWA Reservation Center Project
Major Boost from New Markets Tax Credits Funding
The project that will locate a new Northwest Airlines Reservation Center in Sioux City, Iowa was made possible in part with the commitment of an allocation of New Market Tax Credits from Iowa Community Development of Des Moines. The use of New Market Tax Credits (“NMTC”) will provide nearly $2 million in funds for the project. NMTC are a creative economic development tool design to provide needed capital in qualified communities. The program is administered through the Community Development Financial Institutions Fund (“CDFI Fund”) of the U.S. Department of the Treasury.
Kimberly Reed, Director of the CDFI at the U.S. Treasury Department, traveled from Washington DC to Sioux City to be present at the NWA press conference. She stated “I was delighted to be in Sioux City, Iowa, to see first hand how the New Markets Tax Credit Program is providing key economic incentives for companies such as Northwest Airlines to invest in communities and create good paying jobs. We appreciate Senator Grassley’s support of the CDFI Fund’s New Markets Tax Credit Program and efforts in rural America.”
Funds provided to the NWA project will be used to meet some of the construction remodeling of the building and to support employee parking needs. The City of Sioux City’s Director of Economic Development, Marty Dougherty, stated “the NMTC funding provided by Iowa Community Development is a critical component of the financing of the NWA project, and we are very appreciative of the support of Iowa Community Development”.
Several members of the Board of Directors of Community Development of Iowa were also in attendance, including the Chairman, John Rigler, Rand Fisher, and Dan Robeson. Iowa Community Development has committed all of the NMTC it receives to Iowa projects. Iowa Business Growth manages the NMTC program for Iowa Community Development.
John Rigler, Chairman, Iowa Community Development said, “When we applied to the CDFI fund of the US Treasury for New Market Tax Credits it was because Iowa bankers knew that Iowa was in need of development and venture capital. Too often these resources have gone to large cities in other states with towns like Sioux City being left behind. With the help of Iowa bankers and Senator Charles Grassley we were successful. We are very pleased that these resources are being used to provide hundreds of jobs for northwest Iowans.”
Dan Robeson, Executive Vice President of Iowa Business Growth, commented “This is the type of project Iowa Business Growth envisioned when we partnered with Iowa Community Development to secure New Market Tax Credits for Iowa. This is only the first announcement by Iowa Community Development of a project utilizing the financial enhancements that its New Market Tax Credits can provide. We are expectant that future projects will be equally beneficial to Iowa.” Iowa Business Growth provides management of the program for Iowa Community Development.
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