From Crain’s Detroit Business:
The second phase of $8 million in federal New Markets Tax Credit funding for the $137 million M-1 Rail streetcar project in downtown Detroit has been received.
The first round was received earlier this year, according to a news release.
New Markets investors receive over seven years tax credits equal to 39 percent of the total qualified investment — 5 percent each of the first three years, and 6 percent each of the next four.
The M-1 Rail project is the first public transportation initiative to receive funding through New Markets Tax Credits, said a news release.
Investors in the NMTC funding are J.P. Morgan Chase, Invest Detroit, the Great Lakes Capital Fund, Local Initiatives Support Corp., and United Fund Advisors.
The NMTC was created under the Community Renewal Tax Relief Act of 2000.
M-1 Rail streetcar project, which began construction in July, is 3.3 miles (6.6 miles total) along Woodward Avenue between Grand Boulevard and Congress Street. It will have 20 stations at 12 stops in that stretch.
Organizers predict 5,000 to 8,000 riders a day, with a basic one-way fare of $1.50.
Funding the project are private companies, foundations and hospitals, along with local, state and federal government agencies — making for a 24-part public-private arrangement that took seven years to negotiate and create.