City Secures $6,550,607 in Tax Credits
The Robinson Grand Performing Arts Center is closing a major chapter in funding. Today, within Council Chambers, City Manager Martin Howe presented an overview of New Market and Historic Tax Credits which were used to assist in financing the Robinson Grand as equity towards the overall project.
In attendance for the presentation were members of the community, Clarksburg Development Authority, Urban Renewal Authority, Clarksburg Uptown, City Council, representative from Senator Capito’s office as well as members of the media.
Historic tax credits are one of the most effective tools to ensure the viability of rehabilitation projects.
Rehabilitation tax credits – available from both the federal government and state – are dollar for dollar reductions in income tax liability for taxpayers who rehabilitate historic buildings. The federal credit is 20% of qualified eligible expenses for income-producing properties that are certified historic structures (like the Robinson Grand). The state credit is 10% of qualified eligible rehabilitation expenses for income producing buildings. The State Historic Preservation Office (SHPO) administers both the federal and state tax credit programs in West Virginia. The National Park Service, Department of Interior, has final approval of the Federal Historic Tax Credits.
The New Market Tax Credits (NMTC) is a very competitive program and the entity must meet certain criteria, such as being located within an eligible Census Tract. The NMTC’s assist in revitalizing distressed properties and to develop new opportunities for its community. The NMTC is a valuable source of funding to have an immediate and direct impact within the community.
Multiple partners were retained as well as cultivated to facilitate securing these funds. Some of those partners are:
Brian Wishneff & Associates – Tax Credit Consulting Firm
Spencer Fane – City’s legal representation retained by Brian Wishneff & Associates
Novogradac & Co., LLP – CPA firm specializing in Tax Credit programs.
PIFS – People Incorporated Financial Services - $10,000,000 NMTC Allocation
CAHEC – Community Affordable Housing Equity Corporation - $10,000,000 NMTC Allocation
US BANK – purchased all tax credits
TWAIN Investment Fund
MVB Bank – Bond Anticipation Notes (BANS) – Provided 1 day loan $10,000,000
Through securing both the New Market and Historical Tax Credits, the City reduced the overall cost of the performing arts center which provided a net gain of $6,550,607.
The Robinson Grand Performing Arts Center will develop many new opportunities for our community through assisting in developing and embracing the cultural arts community and providing a strong educational component.
The Robinson Grand is one of North Central West Virginia’s largest economic development projects. Located in Clarksburg’s Central Business District, the center is undergoing a $15 million renovation and restoration with an opening slated for Spring 2018.