An amendment is pending to the economic development agreement between the city of Fort Wayne and the developers of the planned $62 million Electric Works that would allow more time to secure necessary federal tax credits.
The amendments were caused by the 35-day federal government shutdown that started just before Christmas and extended into late January. The shutdown caused delays for RTM Ventures, the firm developing the site, to secure federal New Markets Tax Credits and Historic Preservation Tax Credits, Kevin Erb, spokesman for the developers, said Thursday.
“Essentially, the timeline for the economic development agreement did not anticipate a 30-plus-day partial federal shutdown,” Erb said. “That materially impacted the timeline for two federal components of the funding structure.”
The pending amendment would be a “good faith effort” in helping Electric Works succeed, city spokesman John Perlich said.
“We recognize the recent federal government shutdown did impact the development team's ability in securing necessary tax credits,” Perlich said. “This isn't anything that the local governing bodies did wrong. We've met all of our commitments for the project.”
It's not yet clear when specific details of the amended agreement will be released.
Electric Works is to be a mixed-use development on the former General Electric campus south of downtown.
The city and RTM Venutres signed the economic development agreement for the $62 million development in August.
As part of that agreement, several benchmarks were set that must be met by specific dates to move forward. Specifically, the development needed to secure 100,000 square feet of lease commitments by Dec. 31 and another 150,000 square feet by June 30.
Lease agreements have been secured from several organizations in recent months, including Spherion Staffing, Fort Wayne Metals, Parkview Health, Medical Informatics Engineering, Three Rivers Music Theatre and Rush Rock Gym.