Dallas Development Fund’s NMTC Projects
The Dallas Development Fund (DDF) currently has provided three projects a total of $42.5 M in NMTC allocation from its 2009 award, with a fourth project approved but net yet closed. DDF’s mission prioritizes projects that:
- Provide goods or services to low-income communities, such as grocery stores in Food Deserts or health care services in Medically Underserved Areas
- Create high quality jobs that are accessible to Low-Income Community (LIC) residents
- Are located in Southern Dallas and are transit accessible
A summary of the three funded projects can be found below.
In June 2011, DDF provided $18.5 million in New Markets Tax Credits financing to the NYLO hotel project, a 76-room hotel located in the Cedars neighborhood (just south of downtown Dallas) and within walking distance of the DART light rail station. The LEED-certified project renovated a vacant building, constructed in 1910, that had previously housed the Dallas Coffin Company. It was the first DDF-funded project and also combined NMTC funds with EB-5 funds from the City of Dallas Regional Center and federal Historic Rehabilitation Tax Credits.
Since opening in August 2012, the project has hired 58 full-time equivalent employees. These jobs pay above a living wage, provide full benefits, and are filled primarily by residents of distressed communities in Southern Dallas.
Medical District Kroger Grocery Store
In July 2011, DDF provided $12.5 million in NMTC financing to the Medical District Kroger. The 76,000 sf store transformed a former hardware store into a modern, energy-efficient grocery store. As a full-scale full-service facility in a highly-distressed community, the store not only offers groceries and a wide selection of locally grown and organic produce, but also commercial goods, including general merchandise and pharmacy services. The project is located within 1/3 mile of a DART rail station—allowing easy access for employees and customers—and is an EnergyStar certified project features a reflective roof, skylights for daylighting, enclosure of the delivery dock to reduce heat/air conditioning loss, and energy-efficient lighting and refrigeration cases.
This store opened in April 2012 and has created 208 jobs as well as fresh food access to an area immediately adjacent to two USDA-designated Food Deserts.
Lancaster Urban Village
In September 2012, DDF provided $11.5 million in NMTC financing to the Lancaster Urban Village transit-oriented development located in the Lancaster Corridor in Southern Dallas. The project is a $28MM LEED certified and consists of 193 residential units, of which 99 units are deed restricted affordable, and 14,000 sq feet of retail. In addition, the structured parking will be shared by the adjacent Urban League of Greater Dallas and North Central Texas. Lancaster Urban Village will be the first new multifamily housing developed in the Lancaster Corridor in decades, and is replacing two blighted, dilapidated motels. The project combined NMTC funding with multiple funding sources, including the City’s Public Private Partnership Fund and Tax Increment Financing (TIF) and HUD’s 108 and 221(d)4 programs.
The mixed-use, transit-oriented development project is currently under construction and is expected to be completed in early 2014, with the first units renting late 2013.