|FOR IMMEDIATE RELEASE: May 6, 2004|
FOR MORE INFORMATION CONTACT: Kathy Gaillard (414) 286-8531
Mayor Barrett Announces $100 Million Tax Credits for City
New Market Tax Credits to Assist Projects Such as Pabst City, Tower Automotive
MILWAUKEE, WI – Mayor Tom Barrett, WHEDA Executive Director Antonio Riley, and Legacy Bank's Margaret Henningsen today announced that the City of Milwaukee is eligible for $100 million in New Market Tax Credits to assist areas where at least 20 percent of residents live in poverty.
The New Market Tax Credits program allows businesses to receive tax credits by funding community development agencies that, in turn, invest in businesses in low-income areas. Low income areas are defined as census tracts with either a 20 percent poverty rate or a median income of 80 percent or less of state residents' average income.
"This is exciting news for the entire city," Barrett said. "This will provide an economic development boost that will benefit businesses and thousands of Milwaukee residents. This will be significant in the development of key projects in the city such as Pabst City, the Tower Automotive site, and the Allen Edmonds' Menomonee Valley facility."
Barrett was a member of the U.S. House of Representatives when legislation creating the New Market Tax Credits was enacted. In addition to the tax credits, the legislation also designated Milwaukee as one of 40 Renewal Communities in the country, providing additional tax incentives for businesses in distressed areas. Barrett also played a key role in bringing public, private and non-profit partners together to put in an application for the tax credits for Milwaukee and the State of Wisconsin.
"As Mayor, I am committed to making sure that Milwaukee not only applies for, but receives its fair share of federal funds," Barrett said. "I'm pleased that our efforts led to such a stunning success."
Under the program, the Wisconsin Community Development Legacy Fund, a public-private partnership lead by WHEDA and Legacy Bank that provides financial and technical assistance to communities, will receive $100 million for distribution to eligible businesses in distressed areas.