FORT WAYNE, Ind. (WOWO) – A federal tax credit has been given to RTM Ventures, the developers of Electric Works.
The credit was given to RTM Ventures for their work in developing the old General Electric campus. It is a National Park Service approval for Part 2 of its federal Historic Tax Credit application, according to the Journal Gazette. The final approval, Part 3, can only be given when the final construction of the development is complete.
In order to qualify for the $62 million in local funding, RTM Ventures is required to obtain tax credits. This will all go toward the $248 million mixed-use project. The new campus will include space for offices, innovation, community, and education. Residential space will be included in Phase 2.
According to the Park Service’s website, the Historic Tax Credit program, the owner of the property will receive a 20% federal tax credit when they “undertake a substantial rehabilitation of a historic building in a business or income-producing use while maintaining its historic character.”
Recipients of the tax credit can sell the tax credits to investors. Investors can then apply them for credit against their federal income taxes. This incentive is forecasted to bring in as much as $34 million in private investments to Electric Works.
According to Jeff Kingsbury with RTM Ventures, they have done about 60% of the requirements made by the city in order to close the deal. Kingsbury believes they will meet all the requirements by the June 30 deadline.
Financial closing from all of the sources is expected to take place sometime before October 1.
One other requirement made by the city is for RTM Ventures to secure leasing agreements for no less than 100,000 square feet of the campus. This requirement has already been accomplished with Do it Best signing up with Electric Works back in February of 2020. The company is planning to lease close to 200,000 square feet to house its corporate headquarters, which will bring in 440 employees and create close to 90 additional jobs over time.