Developers of the downtown hotel project are still awaiting a New Markets Tax Credit (NMTC) before demolition and construction at the site can begin.
Securing the NMTC for the $16 million, 99-room Marriott Courtyard Hotel, to be located at the former Mansour’s site downtown, has been anticipated since late 2013.
Officials involved in the project had projected the approval of the NMTC to happen by May, with demolition of the former Mansour building beginning shortly after. Construction of the hotel was expected to be complete by Dec. 2015.
LaGrange City Manager Tom Hall said developer LaGrange Hospitality Partners, LLC should receive the credit any day now and is working JP Morgan Chase and SunTrust banks, whose subsidiaries received allocations this year from the U. S. Treasury Department’s Community Development Financial Institutions Fund.
The NMTC program was created in 2000 as part of the Community Renewal Tax Relief Act of 2000 to spur revitalization efforts of low-income and impoverished communities across the U.S.
The program allows individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs), which invest in low-income communities; The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period.
Developers are expecting to receive $4.9 million from the NMTC and over time the credit would allow for $6 million in federal income tax savings, according to Hall.