by Bradley Parsons
Staff Writer
A new advisory board unveiled last week will bolster the City’s chances to receive tax credits potentially worth hundreds of millions to business owners in the City’s low-income areas.
The federal New Market Tax Credits exchange tax breaks for private investment into areas targeted for economic turnaround. After taking office in July, members of the mayor’s staff worked with private advisers to produce a competitive application for the credits before the Sept. 30 deadline. The six-person board named last Thursday will be one of the most scrutinized aspects of that application.
Mayor’s office spokesperson Heather Murphy said the board members were chosen for their background and experience in community redevelopment. Together, Murphy said they will be one of the strongest components of the City’s application to the Treasury Department.
“We have tax-credit experts, investment lawyers; as we see it when they [the treasury] look at us they’ll see a board that’s well-rounded with experts in the field,” said Murphy. “If we get them [the credits] we’ll be able to operate with due diligence to put them to work. If we don’t, it strengthens our case for next time; either way we’re very pleased with the talent pool we’ve been able to put together.”
The Jobs for Jacksonville Board includes Cheryl Henry, of Bank of America; Rogers Towers’ Brenda Ezell; Willard Payne of Northern Florida Recruiting and Consulting Services; Vestcor’s Kristen Packard; Rock Creek Capital’s Ashton Hudson and Tripp Gulliford of White Oak Capital Advisors, LLC.
If approved, the board would essentially sell the tax credits to private investors and lenders. It would then distribute the resulting income to businesses operating within low-income zones.
The City will leverage the tax credits by
employing them exclusively within its federally-designated Enterprise Zones. The downtown zone covers 16.3 square miles and 60,000 residents. Businesses within the zones already benefit from federal tax credits for hiring and the purchase of equipment and building materials.
The treasury will make available $3.5 billion in tax credits for the NMTC’s next round.
During the board’s initial meeting, Ezell said she was impressed with the credentials of the members present. She said their backgrounds would be complementary.
“From what I can tell, the board was created based on everyone being able to bring something to the table,” said Ezell. “Everybody has some experience in investing into the community.”
Packard oversaw the allocation of similar tax credits to build affordable housing in Texas three years ago. As Vestcor’s vice president of affordable housing, Packard oversaw the financing and construction of the Bay Colony development. The League City, Texas development provided 248 housing units, all set aside for individuals at or below 60 percent of the area’s median income.
Hudson first brought the idea of using the credits to the mayor’s Finance and Efficiency subcommittee shortly after Peyton’s election.
The treasury is expected to award the credits early next year. Until then, Ezell said the board will operate under the assumption that the City will be approved.