News for Immediate
Corbett Announces Allocation of New Markets Tax Credits to Spur New Residential
and Commercial Construction in the City of Reading
– Governor Tom
Corbett today announced the completion of a $5.5 million New Markets Tax Credit
financing transaction that will help fund mixed-use construction at the former
site of the Reading Outlet Center district known as The Big Mill in City’s
outlet center district.
way to navigate core cities like Reading out of fiscal distress and into
prosperity is to attract new development and create new jobs,” said Gov.
Corbett. “We’re proud to be a part of these revitalization efforts in Reading.
We expect that these investments will create focal points to drive further
growth and economic development in the City, benefiting its residents.”
involve a $14.2 million redevelopment of the site, including the complete
renovation of the existing structure into 69 affordable residential units and
approximately 40,000 square feet of commercial space. It is anticipated that
much of the commercial space will be dedicated to businesses needed in the
immediate community, such as adult daycare, child daycare and a learning
center, a medical outreach clinic, and a farmers market.
community impact of The Big Mill development is forecast to include 55 jobs
created during the construction period and 80 full-time equivalent local jobs.
Additionally, most of the businesses to use the commercial space are expected
to be minority owned. All
69 of the apartments
that will be created will be affordable and 12 of the apartments will be rented
to people with disabilities.
702 North 8th Street, The Big Mill is the second largest building in
the former Reading Outlet Center district, which was the commercial heart of
northeast Reading until its abandonment in 2003. The 120,000 square foot
property is one of the cornerstone properties in the neighborhood, and it is
the highest profile building in the area. The building is in a Keystone
Opportunity Zone. The project developer is Shuman Development.
Markets Tax Credit (NMTC) transaction was overseen by Commonwealth Cornerstone
Group (CCG), a nonprofit community development entity established by the
Pennsylvania Housing Finance Agency (PHFA).
credit allocation follows on the heels of similar funding provided to the
Hilton Doubletree Hotel and Convention Center in downtown Reading last winter.
Hudson Sr., CCG chairman and PHFA executive director, explained, “New markets
tax credits have proven to be a powerful tool for stimulating revitalization in
Pennsylvania, and it’s our expectation their use on this project will spur
additional community investment in Reading.”
Reading Outlet Center district has numerous other development activities taking
place as part of a comprehensive neighborhood revitalization plan, including
the completion of the Save-A-Lot shopping center directly across 8th
Street, newly renovated retail buildings on the 800 block of Oley Street, and
the proposed $36 million redevelopment of Reading Outlet Center building #1.
NMTC Program was established by Congress in 2000 to spur new or increased
investments in operating businesses and real estate projects located in
low-income communities. The NMTC Program attracts investment capital to
low-income communities by permitting individual and corporate investors to
receive a tax credit against their federal income tax return in exchange for
making equity investments in specialized financial institutions called
community development entities. The program is administered by the U.S.
Department of the Treasury.
its administration of NMTC funds projects in key areas of communities that have
historic or cultural value and offer opportunities to spark economic
revitalization. CCG utilizes NMTC’s to provide loans and equity investments for
business expansion, mixed-use development, and community facilities across
Pennsylvania. Examples of past developments that have benefited from CCG’s
investment of these tax credits include Bakery Square in Pittsburgh, the Coal
Street Community Facility in Wilkes-Barre, and Schmucker Hall in Gettysburg.
Learn more at: www.commonwealthcornerstone.org/.
Press Office, 717-783-1116
Elliott, PHFA, 717-780-3916
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