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Federal officials join local leaders for tour update of NGA site

NGA Director Robert Cardillo (right) looks on as Otis Williams, executive director of the St. Louis Development Corporation, leads a tour of the new location of the National Geospatial-Intelligence Agency headquarters near 23rd Street and Cass Avenue on Friday, Aug. 17, 2018. From left are Williams, St. Louis Mayor Lyda Krewson, Director of National Intelligence Dan Coats, Deputy Under Secretary of Defense for Intelligence Kari Bingen and Cardillo. Photo by Robert Cohen, rcohen@post-dispatch.com

St. Louis’ economic development arm and three other locally based companies have received a combined $225 million in federal New Markets Tax Credits designed to spur investments in lower-income areas.

Thursday, the U.S. Treasury Department’s Community Development Financial Institutions Fund announced $3.5 billion in federal credits had been allocated to 73 community development entities out of 214 applicants.

The St. Louis Development Corp. again received a $35 million federal allocation, the same as it received last year. The office has consistently won allocations from the Treasury, receiving over $400 million since 2004. Local nonprofits and developers apply to SLDC for the federal credits as a means of financing projects and programs.

Three other locally based organizations received federal new markets credits:

  • MBS Urban Initiatives CDE LLC, an arm of St. Louis-based affordable housing developer and operator McCormack Baron Salazar, received $60 million.
  • Midwest Industrial Redevelopment Fund LLC, the new markets arm of bank CIBC US, received $60 million.
  • USBCDE LLC, U.S. Bank’s community development entity, received $70 million.

The $225 million is the most awarded to local institutions since 2015, when $300 million was allocated to local institutions. The tax credits are used to raise equity investments for projects in lower-income areas. Investors receive 39 percent of the cost of the investment, claimed over a seven-year period.