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City investment in Stadium Place brings new housing, commercial space to Pioneer Square
SEATTLE - Mayor Mike McGinn announced today the award of critical tax credits completing the financing for Stadium Place, new Pioneer Square buildings under way north of Century Link Field.
"Stadium Place brings long-awaited new housing, office and hotel space to the Chinatown/International District and Pioneer Square neighborhoods," said Mayor McGinn. "The city is investing here as part of our continued commitment to these neighborhoods to ensure they are lively urban places for workers, shoppers and visitors."
As part of the Seattle Jobs Plan, the city invests New Markets Tax Credits (NMTCs) through the Seattle Investment Fund LLC to support community-based, economic development projects that help create jobs and provide other community benefits.
The city's investment of NMTCs to the Stadium Place project results in $2.1 million in equity and $10.1 million in debt financing. With this investment, other project partners were able to agree on final financing plan to move the project forward.
"Seattle's Stadium Place is yet another example of the success of the New Markets Tax Credits program and why we need to continue to invest in it," said U.S. Senator Maria Cantwell (D-WA). "This program creates jobs in our communities and invests in the improvement of our neighborhoods. I will continue fighting to extend this job-creating program to help spur investment in more projects like Stadium Place that grow our local economy."
The Stadium Place development transforms the parking lot north of Century Link Stadium into one of the largest transit-oriented development projects on the west coast. It provides much needed mixed-income housing and commercial activity in the Chinatown/International District and Pioneer Square neighborhoods, and is within walking distance to the most active transportation hub in the city, including Amtrak, Sounder train, light rail and metro bus.
"We heard the residents and business-owners of Pioneer Square when they told us the Stadium East project is crucial to the well-being of the neighborhood. This is a wonderful example of the neighborhood, city and federal governments, and a developer working together to make a difference," said Seattle City Council President and Economic Resiliency committee chair Sally J. Clark.
Investing NMTCs gives the city the ability to invest in projects that bring economic benefit to low-income neighborhoods - either developments or business expansions. Through the federal NMTC program, banks receive a tax credit in return for making the investment funds available.
"Working in concert with the City of Seattle and Pioneer Square community, Stadium Place is an opportunity to help revitalize one of our city's oldest and historically significant neighborhoods. It represents over 20 years of planning to bring new housing and economic development to Pioneer Square," said Kevin Daniels, president of Daniels Real Estate, LLC. "We are pleased to have worked closely with the City of Seattle on the Stadium Place project, and recognize that the tax credit investment is not just a commitment to Pioneer Square but to the overall economic vitality of our city."
"The Stadium Place development is critical to the forward movement of Pioneer Square. Let me be first to thank the numerous parties for this support of the neighborhood," said Leslie Smith, Executive Director of The Alliance for Pioneer Square
The city has a strong track record of successfully utilizing New Markets Tax Credits, and has invested in three other prominent projects. The other projects are:
Pike Place Market Renovation: The city's investment of NMTCs to the Pike Place Market renovation project resulted in $1.8 million in equity and $7.3 million in debt financing to help finance tenant improvements and temporary relocation assistance for more than 60 small businesses impacted by the Market's significant infrastructure renovations. NMTC financing helped to retain over 200 permanent jobs.
"While the levy proceeds made the overall renovations possible, the NMTCs transaction provided the critical final piece of financing to support small businesses impacted by the renovation," said Steve Johnson, director of the Office of Economic Development. Many of the businesses received reduced rents or rental assistance and would have struggled to survive during the eight to ten months their market spaces were unavailable."
Bullitt Center: The city's NMTCs investment resulted in $1.9 million in equity and $7.3 million in debt financing to assist the development of the nation's first office building to achieve Living Building standards. The six-story, 50,000-square-foot building, is anticipated to be the nation's first to exceed LEED Platinum efficiency standards. The project also creates or retains 141 direct permanent jobs and creates 94 direct construction jobs that will provide opportunities to WMBEs, pre-apprenticeships and apprenticeships. The building is expected to be an anchor for future economic development through onsite green building training programs. (July, 2011)
INSCAPE building: The city's NMTCs investment resulted in $1.9 million in equity and $7.2 million in debt financing to assist the redevelopment of the historic INS building to create affordable space for local artists and strengthen the connection between the Chinatown/International District and Pioneer Square neighborhoods. The project will create or retain over 100 permanent jobs while providing affordable artist space; and preserve the history of the building's past in conjunction with the Wing Luke Asian Museum. (September, 2011)
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