A military-themed charter high school planned at Federal City will benefit from $3.6 billion in new markets tax credits the Obama administration announced Wednesday at the Algiers campus. National Cities Fund LLC, the community development arm of Federal City developer HRI, is slated to receive $30 million of the $295 million in allocations designated to five real estate and...
A military-themed charter high school planned at Federal City will benefit from $3.6 billion in new markets tax credits the Obama administration announced Wednesday at the Algiers campus. National Cities Fund LLC, the community development arm of Federal City developer HRI, is slated to receive $30 million of the $295 million in allocations designated to five real estate and financing firms in Louisiana, officials said.
"This is the kind of seed money that kick starts revitalization," said Eddie Boettner, chief administrative officer for HRI Properties.
National Cities Fund also will use a portion of its allocation on retail development associated with the Iberville public housing complex, said Hal Fairbanks, HRI's vice president for acquisitions.
The National Cities Fund will forward some of its allocation to the New Orleans Military and Maritime Academy's board of directors, to help finance construction of the school's campus. Officials estimate it will cost $21 million to renovate two century-old Navy buildings and construct a new one at the former Naval Support Activity. The school, where participation in Marine Corps Junior ROTC is mandatory, is expected to open at Federal City this year.
"The tax credits are letting us build the whole school now instead of half now and half later," said its commandant, retired Marine Corps Col. Bill Davis.
The 12-year-old tax credit program is designed to spur economic and community development in low-income areas by attracting private investment.
The new markets tax credits have been "a critically important part of the (financing) puzzle," including in redeveloping closed military bases, said Deputy Treasury Secretary Neal Wolin.
"To lift this economy up, it literally starts in places just like this," said U.S. Sen. Mary Landrieu, D-La., who was joined by U.S. Rep. Cedric Richmond, D-New Orleans, of the Federal City project.
HRI used some of its previously allocated tax credits to help build a 1,000-space parking garage and retail center at Federal City, Boettner said. The garage, which served as a backdrop for Wednesday's press conference, provides parking for the adjacent Marine Corps Support Facility.
First NBC Community Development Fund received a $40 million allocation, which will be invested locally. The other Louisiana recipients are Advantage Capital Community Development Fund of New Orleans, which received an $80 million allocation; AMCREF Community Capital of New Orleans, which received $60 million; and Stonehenge Community Development of Baton Rouge, which received $85 million.
Paul Purpura can be reached at ppurpura@timespicayune.com or 504.826.3791.