The company leading the Electric Works development is asking for more time to find people interested in leasing the space.
Jeff Kingsbury works as the Principal of RTM Ventures LLC. He says the 35-day government shutdown back in December and January put a pause on their process.
The impasse effected both The Department of Interior and The National Parks Service, who oversee the The Historic Tax Credit (HTC) program.
According to the National Parks Service “a 20% income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior, through the National Park Service, to be certified historic structures” (Tax Incentives-Technical Preservation Services, National Park Service).
The Treasury Department, which oversees the New Market Tax Credit Program (NMTC), was also impacted by the shutdown. The impasse in Washington, lasted from December 22 to January 25, 2019, creating a backlog “in their respective review of applications as well as the allocations of those tax credits,” says Kinsbury.
For Fort Wayne, this means about $48M of equity that would go into the project isn’t yet available. Currently, RTM has about 250 square feet of space commited via letters of intent.
Those promises, made by interested parties, will be converted to legally-binding leases, following a more firm construction and delivery schedule by RTM. Leases were supposed to be finalized in June, but Kingsbury is asking for an extension till November.
He says the city has been very understanding and hopes they’ll amend the terms of the development agreement, to allows those federal programs to playout. He is eager to bring the tax credit equity to the project, to the benefit of Fort Wayne.
RTM hopes to start construction in the fourth quarter of 2019. Tenatents would then be able to move-in in the second quarter of 2021.
NEW MARKETS TAX CREDIT PROGRAM. (n.d.). Retrieved March 30, 2019, from https://www.cdfifund.gov/programs-training/Programs/new-markets-tax-credit/Pages/default.aspx
Tax Incentives-Technical Preservation Services, National Park Service. (n.d.). Retrieved March 30, 2019, from https://www.nps.gov/tps/tax-incentives.htm