The City’s Office of Economic Development (OED) will select a community-based lending partner through this Request for Qualifications to provide small business loans ranging from $100,000 to $1,000,000 on behalf of the City. Increasing access to capital for small businesses has been a critical component of the City’s ongoing efforts to foster job creation and economic growth. OED has designated $310,000 to be allocated for expanding its small business lending activities through this partnership. Submissions by qualified organizations engaged in small business lending will be accepted through May 31. Click here for more information.
OED invests in Pike Place Market renovation; makes the cover of Novogradac Journal of Tax Credits
As part of the Seattle Jobs Plan, the Office of Economic Development has been actively investing New Markets Tax Credits (NMTCs) through the Seattle Investment Fund LLC to support community-based, economic development projects that help create jobs and provide other community benefits.
Recently OED’s investment in the Pike Place Market renovation was covered in the Novogradac Journal of Tax Credits.
Pike Place Market is part of a 9-acre historic district that includes housing, small businesses, restaurants, office, and social services and generates more than $100 million in annual sales, according to Ben Franz-Knight executive director of Pike Place Market Preservation and Development Authority (PDA). Now, the market is getting some much-needed improvements. A $73 million, six-year property tax levy funded by Seattle residents is bringing the market buildings into the 21st century, while an infusion of NMTC equity is keeping small and marginal businesses open during the renovation.
“Strengthening and rehabilitating that market for the next hundred years was critical to us. Both economically and culturally, it is the heart of our city,” said Steve Johnson, the city’s economic development director.
The city’s investment of NMTCs to the renovation project resulted in $1.8 million in equity and $7.3 million in debt financing to help finance tenant improvements and temporary relocation assistance for more than 60 small businesses impacted by the Market’s significant infrastructure renovations.
Ken Takahashi, OED’s NMTCs program manager explains, “While the levy proceeds made the overall renovations possible, the NMTCs transaction provided the critical final piece of financing to support small businesses impacted by the renovation.” Many of the businesses received reduced rents or rental assistance and would have struggled to survive during the eight to ten months their market spaces were unavailable.
In addition to the Pike Place Market investment, the city has invested in these two additional projects in 2011:
Bullitt Center: The city’s NMTCs investment resulted in $1.9 million in equity and $7.3 million in debt financing to assist the development of the nation’s first office building to achieve Living Building standards. The six-story, 50,000-square-foot building, is anticipated to be the nation’s first to exceed LEED Platinum efficiency standards. The project also creates or retains 141 direct permanent jobs and creates 94 direct construction jobs that will provide opportunities to WMBEs, pre-apprenticeships and apprenticeships. The building is expected to be an anchor for future economic development through onsite green building training programs. (July, 2011)
INSCAPE building: The city’s NMTCs investment resulted in $1.9 million in equity and $7.2 million in debt financing to assist the redevelopment of the historic INS building to create affordable space for local artists and strengthen the connection between the Chinatown/International District and Pioneer Square neighborhoods. The project will create or retain over 100 permanent jobs while providing affordable artist space; and preserve the history of the building’s past in conjunction with the Wing Luke Asian Museum. (September, 2011)
Read the full Novogradac article on OED’s investment in the Pike Place Market renovation here.
New Markets Tax Credits (NMTCs)
The New Markets Tax Credits (NMTCs) Program was established in 2000 as part of the Community Renewal Tax Relief Act. NMTCs are federal tax credits that can be distributed to private investors who provide low-cost financing for business and real estate projects located in eligible census tracts. The goal of the program is to spur revitalization efforts in low-income and impoverished communities across the United States.
Seattle Investment Fund LLC
The Seattle Investment Fund LLC is a limited liability company created by the City of Seattle to help create a robust economy and broadly shared prosperity through investments of federal New Markets Tax Credits. For more information about the city’s Office of Economic Development’s NMTCs program, visit www.seattleinvestmentfund.com or contact Ken Takahashi at ken.takahashi@seattle.gov or 206-684-8378.
NOAA botched decision to move Seattle fleet to Oregon, audit finds
NOAA botched decision to move Seattle fleet to Oregon, audit finds
Seattle Times
Before deciding to move its research fleet from Seattle to Newport, Ore., the National Oceanic and Atmospheric Administration (NOAA) failed to adequately consider the possibly cheaper option of existing federal facilities in Seattle, a federal auditor’s report says. Please click here to view Senator Maria Cantwell’s full press release.
NDC partners with the City of Seattle and Seattle Steam on a $32 million investment
National Development Council
The National Development Council (NDC) today announced the closing of a $32 million New Markets Tax Credit (NMTC) deal that will allow Seattle Steam, a privately-owned district heating utility, to convert its boiler from natural gas to biomass. “With their expertise in NMTCs and other financing tools, NDC plays a vital role in helping us move forward projects like Seattle Steam that are important to Seattle,” said Steve Johnson, Acting Director of the Office of Economic Development.
Get ready for fireworks in Seattle and Bellevue
Seattle Times
Civic pride and spectacular fireworks will be on display at Seattle’s Family 4th at Lake Union, “A Celebration For The People, By The People,” paid for by hundreds of businesses and individuals who stepped up to ensure that the popular annual celebration would go on this year.
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As a service to the Seattle business community, the Office of Economic Development curates a daily business news blast, Daily Digest. As a new trial feature on Bottom Line, we’re posting a handful of stories from the Daily Digest every day. Find the stories informative or helpful? Keep checking Bottom Line or sign up for Daily Digest to receive the full version in your inbox every day. Subscribe to the Daily Digest here.
Washington state unemployment rate drops
Washington state unemployment rate drops
Puget Sound Business Journal
Washington’s unemployment rate in April improved to 9.2 percent in April, the first time the state has seen a decline in three years. The Bellevue-Seattle-Everett’s unemployment rate in April was 7.9 percent, down from March’s jobless rate of 8.6 percent.
Broadway, Pike/Pine eligible for city’s $40 million tax credit program
Capitol Hill Seattle Blog
Thanks to new federal economic initiatives, Capitol Hill businesses and others across Seattle can now apply for millions of dollars in project investment through the New Market Tax Credits (NMTC) program. The Office of Economic Development, which led the city’s application for the credits, will manage the investment of NMTCs through a city-created entity, the Seattle Investment Fund LLC.
Study: Tech Sector is a jobs engine for Washington state
TechFlash
Nearly half of all jobs in Washington state are tied to the technology industry, according to a new study released today by the Technology Alliance at the group’s annual luncheon.
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As a service to the Seattle business community, the Office of Economic Development curates a daily business news blast, Daily Digest. As a new trial feature on Bottom Line, we’re posting a handful of stories from the Daily Digest every day. Find the stories informative or helpful? Keep checking Bottom Line or sign up for Daily Digest to receive the full version in your inbox every day. Subscribe to the Daily Digest here.
