A federal tax credit that city of Jeffersonville officials had hope to use as an impetus for several major downtown projects will not be received.
Members of Jeffersonville’s Redevelopment Commission recently learned that, at least for now, the city would not be receiving the new markets tax credits for which it had applied.
Administered by the U.S. Treasury Department, the New Markets Tax Credit Program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated areas.
The $25 million in credits that Jeffersonville applied for was not among the about $5 billion approved by the U.S. Treasury at the end of October.
New Markets Tax Credits are used to help encourage private investment in targeted areas, according to a city press release. Jeffersonville’s application sought tax credits to foster downtown development, including funding for a downtown convention center.
“This will not make or break any downtown development,” said Planning and Zoning Director Jim Urban, who is serving as interim redevelopment director, in the release. “It would have been a nice tool to have, but it will not stop progress.”
Nationally, $22.5 billion in projects were proposed for the $5 billion in credits that were allocated, meaning only 22 percent were approved.
“Once word got out that we hoped to build a hotel and convention center, private sectors investors contacted us regarding involvement in the project,” Mayor Tom Galligan said in the release. “I do not believe any of them will walk away from the table as a result of our not getting the New Market Tax Credits.
“All that this means is that one carrot to encourage private-sector investment is not in the mix.”
City leaders hope to construct a 125,000-square-foot convention center and adjoining 225-room hotel in the city’s downtown. The project is expected to cost about $100 million and would require a partnership between city government and one or more private investors.
Rick Lovan, the city’s growth coordinator, said officials are still working on the convention center proposal, most recently looking at possible facades of the building.
Lovan also noted that the credit could have been used to aid development along a proposed downtown canal. The canal is being proposed not only as a means of economic development, but also to relieve stormwater drainage problems.
The city of New Albany also was among those in Indiana which were unsuccessful in efforts to land the credits in this funding round.
They’re applied for annually and the release indicates that leaders plan to try again next year.
BY THE NUMBERS
• $22.5 billion in projects were proposed to receive federal New Market Tax Credits
• $25 million in credits were applied for by the city of Jeffersonville, although none were granted
• $5 billion in credits were allocated nationally
— City of Jeffersonville
Clark County
Jeffersonville misses out on federal tax credits
‘Will not stop progress,’ official says
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Appeals court hears Covered Bridge case
The Indiana Court of Appeals heard the respective oral arguments on the town of Sellersburg’s effort to annex the Covered Bridge Subdivision and the Willows on Wednesday. Covered Bridge appealed the trial court’s ruling that the town’s annexation preceded the subdivision’s effort to incorporate into an independent town and that, in exchange for sewer service, the residents would agree to not remonstrate against the annexation attempt.
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Redistricting on tap again for Jeffersonville
Though they just did so last year, it’s already time for the Jeffersonville City Council to start thinking about redistricting again.
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JEFF Fest set for June 9
The Jeffersonville Entire Family Fun Festival, better known as JEFF Fest, will
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be held from 11 a.m.. to 4 p.m. June 9 in Jeffersonville’s Preservation Park, 150 W. Market St. -
Charlestown encourages Realtors and developers to help it grow
he city hosted a showcase for about 200 developers and Realtors at Charlestown High School on Tuesday. The purpose of the showcase was to pitch the city as a place that is expected to prosper, especially in light of the continued development at River Ridge Commerce Center.
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Jeffersonville mayor vetoes two council acts
“It’s a meaningless resolution. It carries no weight. I think it’s political posturing and I’d as soon not be a part of it,” Moore said. “I will not be brought into a political discussion that’s already been decided.”
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Bridges project specifics emerging
Valentine outlined that incentives will be part of Kentucky’s contract with the winning bidder.
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He explained that once construction begins, the expected cost of construction per day will total about $80,000 and the contractor can earn incentives for finishing early and penalties for finishing late. A completion date is set for June 30, 2018. - News and Tribune briefs for May 23, 2012
- May 22, 2012
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Gregg picks Simpson for Dems ticket
Gregg got his biggest applause from the crowd Tuesday when he played up their joint support for women’s access to health care, which has become a national talking point for Democrats.
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TARC OKs rate increases
Contrary to its monetary situation, the amount of people riding the public transit system has increased about 10 percent, Barker said.
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But the transportation service had not raised its fares, aside from express routes, in four years. -
Miss Clark County 2012 entrants sought
The contest is based on interview, evening gown and professional wear competition. Any Clark County young woman between the ages of 16 to 21 is eligible to participate.
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Appeals court hears Covered Bridge case
