Birmingham’s CrossPlex Village received a boost in the form of a $9 million investment using New Markets Tax Credits.
TruFund Financial Services Inc., a national nonprofit with a presence in Birmingham that supports and helps provide financial resources for impoverished communities, announced the investment through its subsidiary Empowerment Reinvestment Fund (ERF). The funds will go toward the construction of an adjacent hotel, retail center and a 15,000-square-foot restaurant at the Crossplex.
This venture is part of a larger revitalization plan for the western part of Birmingham and the New Markets Tax Credits will assist in transforming the venue into a national and international destination. The sports portion of the Crossplex is already home to one of the fastest hydraulic indoor tracks in the world for track and field runners and an Olympic size swimming pool.
“TruFund is a key element to the success the city has enjoyed as we continue to develop Crossplex Village,” said Birmingham Mayor William Bell. “Under the leadership of TruFund President and 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.”
New Market Tax Credits 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 financing in Alabama through the tax credits over a span of 10 years. These developments have led to 2,823 construction jobs and 3,036 full-time jobs. The credits have become a valuable tool for TruFund to meet the needs of communities searching for pathways to enhanced economic development.
TruFund detected a need within the community the Crossplex calls home due to a high poverty and unemployment rate. This project is expected to create over 140 jobs with living wages and full benefits. A groundbreaking was held recently for the Comfort Inn and Suites and Starbucks portion of the CrossPlex Village development.
“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,” said Norm Davis, Vice President and 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.”