Two members of the Macon-Bibb County Urban Development Authority said Thursday they were able to create a tax-credit entity in a very short time frame.
Authority members Maryel Battin and Lawrence Williamson helped set up Greater Macon CDE LLC, a community development entity that could use federal tax credits to encourage investment in low-income communities, such as Macon.
“We got it done with a local attorney within 48 hours,” Battin said during the authority’s meeting. “We don’t know if we are certified yet.”
With the CDE, the authority could apply under the New Market Tax Credit Program for the income tax credits, which then could be sold to investors to raise equity for projects.
Battin said Macon Mayor Robert Reichert had suggested the authority apply for a 2010 allocation by the June 2 deadline. However, the requirements set forth in a 76-page application would be too time consuming and costly to do in such a short period of time, authority members agreed after discussing the matter. The legal fees alone were estimated to be about $50,000.
The allocations are given annually so the authority discussed taking the time to do much of the legwork themselves and to be prepared to apply next year.
In the meantime, the authority could also use the CDE designation to play the role of middle man by matching developers with established state or national CDEs, such as the National Trust.
To contact writer Linda S. Morris, call 744-4223.