Long Beach, CA
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File #: 06-1325    Version: 1 Name: CD - Contract with Kelli Bernard
Type: Contract Status: CCIS
File created: 12/13/2006 In control: City Council
On agenda: 12/19/2006 Final action: 12/19/2006
Title: Recommendation to authorize City Manager to submit an application for an allocation of federal New Markets Tax Credits and approve a contract with Kelli Bernard to prepare the application and to provide project administration for the program, if approved. (Citywide)
Sponsors: Community Development
Attachments: 1. 121906-C-9sr&att
TITLE
Recommendation to authorize City Manager to submit an application for an allocation of federal New Markets Tax Credits and approve a contract with Kelli Bernard to prepare the application and to provide project administration for the program, if approved. (Citywide)

DISCUSSION
The New Markets Tax Credits (NMTC) is a program of the U.S. Department of Treasury with a purpose of stimulating investments in businesses and commercial real estate development in qualifying low-income areas. The NMTC encourages investment by offering individuals and corporations tax credits that total 39 percent of investments for projects in qualifying census tracts. To qualify, census tracts must have a poverty rate greater than 20 percent or a median income less than 80 percent of either the metropolitan area or statewide median family income, whichever is higher. Long Beach has 59 census tracts that would qualify. These census tracts are identified in a map attached as Exhibit A.

On August 16, 2005, the City Council adopted a Resolution authorizing the formation of the Long Beach Development Fund, a California non-profit corporation, for purposes of applying for certification as a Community Development Entity (CDE) in order to apply for an allocation of NMTC. The Long Beach Development Fund was duly formed, and was certified in April 2006 by the U.S. Treasury to serve as the City's CDE. The purpose of the CDE is to attract development to the City's low-income census tracts by offering NMTC. Its primary mission will be to encourage development in low-income communities in the City of Long Beach. Examples of activities of the corporation or Long Beach Development Fund would include:

§ Investing in, lending to or providing technical assistance to businesses located in low-income communities;

§ Investing in or providing loans to support commercial development located in low-income communities; or

§ Investing in, lending to or providing technical assistance to organizations, i...

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