Philadelphia Hotel Redevelopment: Headline Risk for Almanac’s Limited Partners?
August 2, 2017
Our new report, “Philadelphia Hotel Redevelopment: Headline Risk for Almanac’s Limited Partners?,” is available here.
- Almanac Realty Investors was featured in an article in the Philadelphia Inquirer
headlined “U.S. Rep. Brady Slams Tax Credit for Philly Hotel in Letter to Treasury”
- HRI Properties, a portfolio investment of Almanac, is using $15 million in New Markets Tax Credits (NMTC), a federal anti-poverty program designed to help low income communities which lack access to capital, to develop the Aloft Hotel in downtown Philadelphia.
- In a letter to U.S Secretary of Treasury Steve Mnuchin, Pennsylvania Congressman Bob Brady wrote that he was “deeply troubled” by HRI’s use of NMTCs to finance the Aloft.
- The NMTC program is intended to encourage investment in poor neighborhoods, but according to Congressman Brady “this project is neither located in a low-income community, nor will its benefits accrue to the residents of the surrounding neighborhood.”
- Community members have raised questions about what, if any, positive impact the hotel will have on residents, and the controversy surrounding the hotel has been the subject of multiple news articles.
- The use of New Markets Tax Credits to develop the Blackstone Hotel in Chicago in 2011 created a scandal after it was exposed on the CBS evening news. A former Treasury Department senior policy advisor said at the time that “things like luxury hotels are entirely contrary to what we set out to do” with the New Markets Tax Credit Program.