New Market Tax App HeartlandMEM
ORANDUM
September 24, 2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
New Market Tax Credits
In 2000, Congress passed the New Markets Tax Credit program, a program that
provides taxpayers a credit for investments in Community Development Entities (CDEs)
that in turn provide investment capital for Iow-income neighborhoods or communities. A
CDE, once established, can apply for an allocation of the tax credits.
Heartland Financial USA Inc. (Dubuque Bank and Trust) has recently formed a CDE.
The CDE, Heartland Community Development Inc., is in the process of applying for an
allocation of New Markets Tax Credit and is requesting a resolution of support from the
City for this project. The application for $75 million is targeted to the City's lowest
income census tracts in the Downtown area. If funded, this new program has great
potential to assist in the redevelopment of our downtown area and the Port of Dubuque.
Economic Development Director Bill Baum recommends support of this tax credit
application. The application deadline is September 30, 2003.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
M~chael C. Van Milligen Q
MCVM/cs
Attachments
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Bill Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
FROM:
SUBJECT:
Michael Van Milligen, City Manager
William J. Baum, Economic Development Director
New Markets Tax Credit Application
September 15, 2003
BACKGROUND
In 2000, Congress passed the New Markets Tax Credit program, a program that
provides taxpayers a credit for investments in Community Development Entities (CDEs)
that in turn provide investment capital for Iow-income neighborhoods or communities. A
CDE, once established, can apply for an allocation of the tax credits.
DISCUSSION
Heartland Financial USA Inc. (Dubuque Bank and Trust) has recently formed a CDE.
The CDE, Heartland Community Development Inc., is in the process of applying for an
allocation of New Markets Tax Credit. The application for $75 million is targeted to the
City's lowest income census tracts in the Downtown area.
RECOMMENDATION
Community support for the application is essential. If funded, this new program has
great potential to assist in the redevelopment of our downtown area and the Port of
Dubuque. I recommend the City Council support the application, which has a deadline
of September 30.
ACTION REQUESTED
Adoption of the attached resolution.
F:\USERS\WBaum\Memos to Mike -- General\Memo to MVM on New Market Tax Credit Program.doc
RESOLUTION NO. 348-03
A RESOLUTION SUPPORTING AN APPLICATION FOR THE NEW MARKETS
TAX CREDIT PROGRAM
Whereas, the federal New Markets Tax Credit Program has been established to
assist in providing investments in Iow income neighborhoods; and
Whereas, Heartland Community Development Inc., a subsidiary of Heartland
Financial USA Inc., the parent company of Dubuque Bank and Trust, is
proposing to file an application for an allocation of New Markets Tax Credits; and
Whereas, the application is targeted to the lowest income neighborhoods in the
City of Dubuque;
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE,
IOWA,
Section 1. The City Council endorses and supports the efforts of Heartland
Community Development Inc., a subsidiary of Heartland Financial USA Inc., the
parent of Dubuque Bank and Trust, to obtain a $75 million allocation from the
New Markets Tax Credit Program.
Section 2. The City Manager is authorized to assist Heartland Community
Development Inc., a subsidiary of Heartland Financial USA Inc., the parent of
Dubuque Bank and Trust, in the application process for the New Markets Tax
Credit Program.
Passed, approved and adopted this 26~h day of September, 2003.
Terrance M. Duggan, Mayor
ATTEST:
Jeanne F. Schneider, City Clerk
F:\USERS\WBaum\Walsh store Heartland Finandal\Resolu'don Supporting the New Markets Tax Credit program.doc