Federal City Hosts Major Economic Development Announcement by Treasury Department
With the Federal City project — the redevelopment of the former Naval Support Activity New Orleans — as a backdrop, the Treasury Department announced Thursday the selection of 70 organizations nationwide to receive $3.6 billion under a federal tax credit program designed to spur growth in low-income and distressed communities.
The Treasury Department used the Federal City project to announce the New Markets Tax Credit (NMTC) awards to highlight the 155-acre development’s reliance on the federal program. Funds from the awards announced last week will help finance renovation of two century-old buildings and construction of a new one for the New Orleans Military and Maritime Academy located at the former support activity, reported the Times-Picayune. The school is expected to open this year.
Federal City master developer HRI previously used NMTC awards to help finance a 1,000-space parking garage and retail center at Federal City, a partnership between the New Orleans Federal Alliance and the Algiers Development District.
“Our presence here today illustrates just what can be accomplished when affordable financing is available for projects that revitalize struggling communities,” Donna Gambrell, director of Treasury’s Community Development Financial Institutions Fund, said Thursday. “We frequently associate the New Markets Tax Credit with new builds, but just as frequently the tax credit allows for new use of an existing property. By opening the grounds of Federal City to the community, new life has been breathed into this area.”