Tax credits to help finance Minneapolis project

Updated: November 2, 2009 - 11:42 PM

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Great Neighborhoods Development Corp., a key driver behind redevelopment of E. Franklin Avenue in south Minneapolis, said Monday it has received a $15 million allocation of tax credits from the U.S. Treasury to sell to investors in a pivotal north Minneapolis project scheduled to break ground in 2010.

The credits, the only ones awarded directly to a Twin Cities project, are part of $5 billion in tax credits announced last week by the Treasury.

The Treasury also awarded $75 million to Minneapolis-based National New Markets Tax Credit Fund, which will use its allocation to fund small business and rural community-improvement projects through 48 lenders around the country.

Great Neighborhood's CEO, Theresa Carr, said the $15 million award will be used to attract investors in the "Broadway Business Center," a 47,000-square-foot retail-and-office building at W. Broadway and Aldrich Avenue N. That project is part of the nonprofit developer's larger Broadway Plaza, a 150,000-square-foot development that will include a fitness center, full-service restaurant, retail and offices.

Broadway Plaza, estimated at up to $70 million, targets two long-vacant blocks and is expected to create up to 500 construction jobs and 225 permanent jobs.

"The tax credits will help us in our efforts to build and sustain a safer and more vibrant Hawthorne neighborhood," Carr said.

NEAL ST. ANTHONY