Birmingham, AL – August 02, 2017 –TruFund Financial Services, Inc., through its subsidiary Empowerment Reinvestment Fund (ERF), today announced the investment of $9 million in New Markets Tax Credits to support the CrossPlex Development in Birmingham, Alabama. This investment will support the construction of a 101-room hotel, 6,500 square feet of retail with a coffee shop and pizzeria, and a 15,000 square feet restaurant row with five eateries; part of a broader revitalization strategy. The project will build upon efforts to drive economic development in the western part of the city, and enhance the existing CrossPlex sports venue that is adjacent to the project site. The CrossPlex sports venue is a national and international destination that houses one of the fastest indoor hydraulic tracks in the world along with an Olympic size swimming pool, nine-volleyball court venue, a 50,000 seat basketball arena and a platform to develop many other sports.
“TruFund is a key element to the success the city has enjoyed as we continue to develop Crossplex Village,” said Birmingham Mayor William A. Bell, Sr. “Under the leadership of TruFund President & CEO James Bason and Vice President Norm Davis, the mission of TruFund to serve as a catalyst for economic development in underserved communities has become more than words on a website, but a true partnership that serves as a new hope for the western section of Birmingham. This is a catalytic project that we view as one of the most important undertakings in the history of our city. TruFund has stepped to the forefront of CrossPlex Village and has proven to be a great ally to the City of Birmingham and the Five Points West neighborhood as our strong desire to bring new businesses to the western area becomes a reality.”
The CrossPlex project is in an area of high distress, with 31% poverty and 22% unemployment. This project will create 140+ jobs with living wages and full benefits, of which a majority will be held by low income residents. The project was also led by a minority developer and will support several MWBE businesses.
“We are pleased to have participated in the financing of such a dynamic and impactful project”, said Aisha Benson, Executive Vice President of TruFund Financial Services, Inc. “It hits on many of TruFund’s investment priority points, including job creation, revitalization of economically distressed communities, investment in minority and women owned businesses, and provision of quality commercial goods and services.”
City officials, neighborhood presidents, and residents were in the Five Points West Community recently for the groundbreaking of the Comfort Inn and Suites and Starbucks portion of the CrossPlex Village Development in preparation for a host of sporting events associated with the 2021 World Games.
“This development presented the perfect opportunity for TruFund to engage in economic development and investment in a low-income community which is central to our mission. The construction, employment and financing opportunities that will result from the project will benefit the community for years to come.” said Norm Davis, Vice President & Managing Director of Alabama. “We look for situations where our investments can be leveraged, used to attract additional investment dollars. We thank the Mayor and the City of Birmingham for their vision and the opportunity to make a difference!”
About TruFund Financial Services
TruFund Financial Services, Inc. is a national non-profit Community Development Financial Institution (CDFI). TruFund seeks to stimulate economic development in communities that are underserved by traditional banking institutions by providing fair and accessible capital, hands-on technical assistance and innovative solutions to small businesses and nonprofit organization. For more information, please visit the website at www.trufund.org
About Empowerment Reinvestment Fund (ERF)
Empowerment Reinvestment Fund LLC (ERF) is the subsidiary of TruFund that is a certified Community Development Entity (CDE) qualified to receive New Markets Tax Credit (NMTC) allocations. ERF has previously been awarded $240 million in NMTC allocations from the CDFI Fund since 2003. In the last round, ERF received $55million in NMTC allocations. This highly competitive award is a part of the now $44 billion NMTC Program, enacted by Congress in 2000 to encourage economic development investment in low-income communities nationwide.
About New Market Tax Credits in Alabama
New Market Tax Credits (NMTC) are designed to spur growth in low-income or rural areas across the U.S. that struggle to attract investment from other sources. More than 30 businesses and revitalization projects received NMTC financing in Alabama over a span of ten years according to New Market Tax Credit Coalition progress report, which created 2,823 construction jobs and 3,036 full-time jobs, the report shows. The New Market Tax Credit program had a $557.4 million impact on Alabama over the ten year span. The report also shows for Alabama, the federal program had an allocation of $317.3 million and an additional $240.1 million from other sources in project investments in the state.
