Elizabeth Development Company

New Market Tax Credits
The EDC recieved $35 million in New Market Tax Credit allocations in 2006 and 2007 - the only allocations awarded to a wholly New Jersey-based community development entity.
 
These funds, in the form of equity investment or below-market financing, are being used to support major retail and commercial redevelopment projects in the city.
 
The tax credit program is an economic development tool designed by the federal government to help stimulate new development in the nation’s urban and rural areas.  The program provides a 39% tax credit over seven years to investors that help redevelop urban centers such as Elizabeth.
 
The first project, which received $14.5 million in New Market Tax Credit financing, was brought forward by Atalanta Corporation, an international leader in food importing and international trading.  The project included a $17 million expansion of its Port Related Distribution Center in Elizabeth which has brought an additional 80,000 square feet of warehouse space to the Elizabethport waterfront and will create as many as 80 new permanent jobs in the City.  Additionally, this project included the installation of an extensive energy efficient solar panel system encompassing more than 140,000 square foot of roof.

More recently, $12.5 million in New Market Tax Credits financing has been put in place as part of a $40 million collaborative initiative between the Elizabeth Parking Authority, the City of Elizabeth, the County of Union, and Union County College which funded the construction of a new 1,500 space parking deck which includes 27,000 square feet of commercial space in Midtown Elizabeth.

 

For information on the Federal New Market Tax Credit Program:

http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=5