PRESS RELEASE: First-Ring Industrial Redevelopment Enterprise, Inc. (FIRE), an affiliated entity of the City of West Allis, is pleased to announce that it was chosen by the CDFI Fund, U.S. Department of Treasury today to receive a $35 million New Markets Tax Credit (NMTC) allocation in the 16th round of the program.
The NMTC application process is rigorous and highly competitive. Two hundred and six CDEs from around the country requested $14.7 billion of allocation. FIRE was one of only 76 organizations that were selected.
“FIRE appreciates the partnership with the CDFI Fund in supporting FIRE’s community and economic revitalization strategies in Southeast Wisconsin’s disinvested urban industrial corridor along Lake Michigan, including Kenosha, Racine, and Milwaukee. This award will bring this valuable capital resource (NMTC) to FIRE’s mission to create jobs and remove blight in severely distressed low-income communities,” said John Stibal, president of FIRE.
FIRE has been fortunate enough to receive nine allocation awards of $323 million since 2007. “We are excited to bring this much-needed resource to FIRE’s efforts to reclaim cleaned up Brownfield sites and catalyze growth opportunities in deeply distressed low-income communities, to breathe life into projects that meet the needs of our targeted communities,” said FIRE Board Chair Mickey Czaplewski.
The NMTC Program is a powerful federal economic development tool designed to promote development into America’s underserved and distressed communities. NMTCs generate private equity when leveraged with other sources of capital to create flexible financing structures for projects in these areas. Federal data show that for every dollar of allocation provided under the NMTC program, an additional $8 of private investment is leveraged for the economic development of these communities.
The NMTC program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in qualified low-income community investments. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. Substantially all of the taxpayer’s investment must in turn be used by the CDE to make qualified investments in low-income communities.
Headquartered in West Allis, WI, First-ring Industrial Redevelopment Enterprise, Inc. (FIRE) was formed in 2007 to attract tax credit and other funding incentives for projects that can demonstrate significant and measurable community impact. The company provides below-market rates and terms for equity-equivalent, senior and subordinate loans products in healthcare, education, commercial, mixed-use and industrial projects located in highly distressed communities throughout its four-county service region. FIRE is an equal opportunity provider.
For additional information, please contact:
John F. Stibal
President, First-ring Industrial Redevelopment Enterprises, Inc. (FIRE)
Director of Development, City of West Allis
7525 W. Greenfield Ave. West Allis WI. 53214
Download Full Press Release (PDF)