New Markets Tax Credits - Dallas Development Fund
The City of Dallas Office of Economic Development, through its Community Development Entity (CDE) Dallas Development Fund (DDF), administers allocations of New Markets Tax Credits (NMTC) from the US Department of the Treasury. Created in 2009 by the Dallas City Council, DDF is a non-profit organization affiliated with the Office of Economic Development that uses NMTC to provide equity funding for real estate development and corporate expansion projects in traditionally under-served communities.
Under the NMTC financial structure, investors (individuals and corporations) purchase federal income tax credits from CDEs. Currently, the credit is 39 percent of the original investment, claimed over seven years.
To date, DDF has received three allocations, in 2009, 2012 and 2014, for a total of $130 million. DDF allocations are typically paired with one or more City of Dallas programs to facilitate projects.
DDF currently has $6 million remaining in its 2014 allocation.
Under the NMTC financial structure, investors (individuals and corporations) purchase federal income tax credits from CDEs. Currently, the credit is 39 percent of the original investment, claimed over seven years.
Availability
To date, DDF has received three allocations, in 2009, 2012 and 2014, for a total of $130 million. DDF allocations are typically paired with one or more City of Dallas programs to facilitate projects.
DDF currently has $6 million remaining in its 2014 allocation.
Dallas New Markets Tax Credits Eligible Areas
Dallas Development Fund Success Stories
NYLO Dallas South Side Hotel
1325 S. Lamar St.
Dallas, TX 75215
$18.5 million in DDF's NMTC allocation helped to finance the 76-room hotel, a historic preservation project in the heart of the Cedars neighborhood, south of downtown. The NYLO was the first project in the nation to combine NMTC equity with EB-5 financing through the City of Dallas Regional Center.
1325 S. Lamar St.
Dallas, TX 75215
$18.5 million in DDF's NMTC allocation helped to finance the 76-room hotel, a historic preservation project in the heart of the Cedars neighborhood, south of downtown. The NYLO was the first project in the nation to combine NMTC equity with EB-5 financing through the City of Dallas Regional Center.
Kroger Fresh Fare
4901 Maple Ave.
Dallas, TX 75235
Adapting a former hardware store near the Southwestern Medical District and a light-rail station, this store opened with the assistance of $12.5 million in allocation from DDF. The store opened in May 2012 with 57 full-time and 83 part-time employees.
4901 Maple Ave.
Dallas, TX 75235
Adapting a former hardware store near the Southwestern Medical District and a light-rail station, this store opened with the assistance of $12.5 million in allocation from DDF. The store opened in May 2012 with 57 full-time and 83 part-time employees.
Lancaster Urban Village
4417 S. Lancaster Rd.
Dallas, TX 75216
Located directly across Lancaster Rd. from the Dallas VA Medical Center and corresponding DART light rail station, the Lancaster Urban Village is a mixed-use development with 193 apartment units and 14,000 sq. ft. of retail space. A $11.5 million allocation from DDF was part of a capital stack that also included a HUD Section 108 loan, a TOD TIF District grant, and other city funding. The project, located on the former site of two motels, opened in summer 2014.
4417 S. Lancaster Rd.
Dallas, TX 75216
Located directly across Lancaster Rd. from the Dallas VA Medical Center and corresponding DART light rail station, the Lancaster Urban Village is a mixed-use development with 193 apartment units and 14,000 sq. ft. of retail space. A $11.5 million allocation from DDF was part of a capital stack that also included a HUD Section 108 loan, a TOD TIF District grant, and other city funding. The project, located on the former site of two motels, opened in summer 2014.
CitySquare Opportunity Center
1610 S. Malcolm X. Blvd.
Dallas, TX 75226
The 52,000 sq. ft. center expands CitySquare's programs to empower low-income residents through job training; GED, ESL, and literacy education; and partner programs from other non-profits. With the support of $12.5 million in NMTC allocation from DDF, the CitySquare Opportunity Center was able to serve 18,600 individuals in its first year of operation (2015).
1610 S. Malcolm X. Blvd.
Dallas, TX 75226
The 52,000 sq. ft. center expands CitySquare's programs to empower low-income residents through job training; GED, ESL, and literacy education; and partner programs from other non-profits. With the support of $12.5 million in NMTC allocation from DDF, the CitySquare Opportunity Center was able to serve 18,600 individuals in its first year of operation (2015).
Vogel Alcove
1738 Gano St.
Dallas, TX 75215
Housed in a former public elementary school in the Cedars neighborhood south of downtown, Vogel Alcove provides children from homeless or at risk families with pre-school, therapy, and health support services. To help with the renovation of the facility, DDF provided an allocation of $6 million for the 13 classrooms, resource center, playground, library and other spaces.
1738 Gano St.
Dallas, TX 75215
Housed in a former public elementary school in the Cedars neighborhood south of downtown, Vogel Alcove provides children from homeless or at risk families with pre-school, therapy, and health support services. To help with the renovation of the facility, DDF provided an allocation of $6 million for the 13 classrooms, resource center, playground, library and other spaces.
Dormae Products (Serta)
9025 Old Hickory Trail
Dallas, TX 75237
This 297,000 sq. ft. facility is the second location for Dormae Products, a licensed Texas-based Serta manufacturer. DDF provided a $9 million allocation to support the project, located in the Red Bird area of Southern Dallas. Opened in November 2015, the plant is expected to create 160 full-time jobs.
9025 Old Hickory Trail
Dallas, TX 75237
This 297,000 sq. ft. facility is the second location for Dormae Products, a licensed Texas-based Serta manufacturer. DDF provided a $9 million allocation to support the project, located in the Red Bird area of Southern Dallas. Opened in November 2015, the plant is expected to create 160 full-time jobs.
Parkland Hatcher Station Health Center
4600 Scyene Rd.
Dallas, TX 75215
The first phase of the Hatcher Station Village project located at the eastern end of the South Dallas / Fair Park area, the health center is the first Parkland Hospital system clinic adjacent to a DART light rail line. A $15 million allocation from the DDF supported the $18.3 million project, which also included support from the City of Dallas Public/Private Partnership Program and the South Dallas / Fair Park Trust Fund. The clinic opened in May 2015 with 105 full-time positions.
4600 Scyene Rd.
Dallas, TX 75215
The first phase of the Hatcher Station Village project located at the eastern end of the South Dallas / Fair Park area, the health center is the first Parkland Hospital system clinic adjacent to a DART light rail line. A $15 million allocation from the DDF supported the $18.3 million project, which also included support from the City of Dallas Public/Private Partnership Program and the South Dallas / Fair Park Trust Fund. The clinic opened in May 2015 with 105 full-time positions.