Local Initiatives Support Corporation Los Angeles (LISC LA) announced that in a partnership with New Markets Support Company (NMSC) the organization will contribute $7 million of LISC’s New Markets Tax Credit (NMTC) allocation to support the efforts of Destination Crenshaw – a groundbreaking effort developed to revitalize and reimagine a business and cultural corridor along Crenshaw Boulevard. LISC’s $7 million in allocation will be combined with $10 million from Lendistry, $8 million from Building America and $5 million from USBank CDC. US Bank is also the NMTC investor.
Crenshaw Boulevard is the heart of the West Coast Black community and home to a historic Black business corridor. Crenshaw was adversely affected by the Metro train line connecting the airport to the rest of the city being constructed “at grade” through the community, bifurcating the Black business corridor. Destination Crenshaw was created in 2017 and aims to create and then maintain a unique culturally stamped business district to revitalize the community. These goals aim to help sustain over 40 local small businesses and non-profits, create over 40 permanent jobs and over 600 construction jobs, public art commissions for over 100 local artists, plant over 800 trees and create 10 new parks.
The $30 million NMTC financing will leverage public funds provided to Destination Crenshaw and specifically support the creation of Sankofa Park, provide $2 million in art commissions, and continue to support programs to back local legacy businesses along the corridor.
“Destination Crenshaw is a revolutionary cultural effort that will revitalize the South LA community through supporting small businesses and fostering the Black LA creative economy,” said Tunua Thrash-Ntuk, Executive Director of LISC LA. “LISC LA is proud to be a key partner on this project that creates these ladders of economic opportunity, and we look forward to continuing this work through the development of Destination Crenshaw and beyond.”
LISC LA has been a strong local partner to Destination Crenshaw. Destination Crenshaw was selected as LISC LA’s partner to implement its South LA Economic Inclusion Plan. This three-year implementation plan supports an integrated, place-based approach to advancing economic mobility for communities in South LA. The plan recommendations seek to connect South LA residents and businesses to the regional economy and foster connections across local organizations to create ladders of economic opportunity for South LA residents.
NMSC was founded by parent company LISC in 2004 to manage its community investing using the New Markets Tax Credit. NMSC leverages its 18 years of NMTC experience in partnerships with investors nationally to develop and manage community investing financial solutions that create more equitable, just, healthy, and prosperous communities.
“Destination Crenshaw is a great example of New Markets Tax Credits being used to invest in local, community-driven initiatives,” said Donna Nuccio, VP of NMTC Investing at NMSC. “We are honored to work in partnership with LISC LA to bring NMTC allocation to such a dynamic project that creates economic opportunity while embracing the rich culture and community of South LA.”
The federal New Markets Tax Credit program was designed to increase the flow of private sector capital to businesses, nonprofits, community facilities and other important projects in communities that have endured historic disinvestment. It provides tax credits to investors in qualifying real estate and business ventures. The U.S. Treasury Department awards the credits through its Community Development Financial Institutions Fund.
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About LISC
With residents and partners, LISC forges resilient and inclusive communities of opportunity across America – great places to live, work, visit, do business and raise families. Since 1979, LISC has invested $24 billion to build or rehab 436,320 affordable homes and apartments and develop 77.4 million square feet of retail, community and educational space. LISC LA’s mission is to work with local leaders to invest in housing, health, education, public safety, and employment – these basic needs must be tackled at once so that progress in one is not undermined by neglect in another.
About New Markets Support Company (NMSC)
NMSC is an impact fund services company dedicated to bridging the gap between investors and underinvested communities and enhancing the vibrancy and scale of the market. NMSC develops financing solutions with a unique, collaborative approach with its Fund Management Services. Additionally, NMSC supports aligned partners with customized services to boost their capacity to advance equitable outcomes through its Fund Administration Services. For more, visit www.newmarkets.org.