Philly gets $50M in tax credits for development

The city has won $50 million in federal tax credits that will be used to spur economic-development projects in targeted neighborhoods, Mayor Nutter announced Thursday.

The money will be doled out by the Philadelphia Industrial Development Corp. primarily for four types of projects - supermarket-anchored shopping centers, health-care facilities, manufacturing, and mixed-use developments.

The city last received the New Markets Tax Credits in 2007, using the money to help finance four projects, including the SuperFresh grocery at Second Street and Girard Avenue and the Hilton Homewood Suites on City Avenue.

That year, the city won $60 million in tax credits.

Nutter praised this year's award as a jump-start to the city's economy and job market.

"I can only characterize this almost as money falling down from the sky," he said. "And it could not have come at a better time."

PIDC president John Grady said the money, which probably will not be available for a month or two, would be used to help projects that are close to breaking ground but need "that last piece to get over the hump."

"We're not going to sit on these dollars," he said. "We're not going to promise them to projects that are going to sit for months."

In the application process for the tax credits, PIDC identified a couple of pending projects as potentially worthy recipients of the funds.

One example Grady cited was the redevelopment of the former Tasty Baking plant in Nicetown.

The money will go only for projects in certain lower-income census tracts, Grady said. About 80 percent of the city's neighborhoods would qualify, he said.

PIDC has three years to use the money, but Grady said he would like to distribute it quickly and get back in line for more tax credits.

Ideally, he said, he would like to assist four projects, one small to medium and three larger developments.

Typically, the tax credits are sold and the cash given to finance the developments. Often, a bank involved in the financing purchases the credits.

PIDC was one of 70 organizations to share $3.5 billion in tax credits Thursday from the U.S. Treasury Department.

Nutter called on the development and business communities to present ideas to PIDC.

"It's a great chance to invest in diverse, resourceful communities," he said. "Give us your best shot."