Area Will Benefit from $80 million Tax Credit Allocation Awarded to MMCDC

(WASHINGTON, DC) - Congressman Collin C. Peterson is pleased to announce that Midwest Minnesota Community Development Corporation (MMCDC) has received a New Markets Tax Credit allocation of $80,000,000, which they will use to provide loan capital for rural value-added agricultural projects, sustainable energy projects, the commercialization of new technologies, and smart growth development projects of office and retail space.

“This Treasury Department award is terrific news for western Minnesota,” Peterson said. “Because of the impressive work of Arlen Kangas and his staff at MMCDC, there is great opportunity for investors who are looking at this part of Minnesota.”

The NMTC allocation will allow MMCDC to provide loan capital with flexible terms and below market rates to projects in low-income communities. Their focus is to place capital in rural markets.

MMCDC President Arlen Kangas said of the allocation, “I am pleased with the award, and pleasantly surprised by the size of it. MMCDC is focusing on investments leading to long-term growth of Minnesota’s economy, especially in the rural areas. As part of that strategy we have taken to heart Collin’s challenge to us and others to invest in value-added agricultural projects.”

One project to which MMCDC has already offered a NMTC allocation is the Otter Tail Ag Enterprises ethanol plant to be built just north of Fergus Falls. That project is expected to provide nearly 700 direct and indirect jobs and almost $20 million in household income when it is completed in fall 2007.

MMCDC received a prior NMTC allocation of $35,000,000 in 2004. That award was used to finance two rural manufacturing expansions, a biotech research park in St. Paul, the Midtown Global Market in Minneapolis, and the Sheraton Hotel in Duluth.

If you have questions related to the MMCDC’s New Markets Tax Credit program, please call (218) 847-3191.

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