By Dave Fidlin
Correspondent
With the intent of continuing its ambitious development plans into the future, the Whitewater Community Development Authority (CDA) could forge a close working relationship with the Wisconsin Housing and Economic Development Authority (WHEDA) with a new year on the horizon.
At a recent CDA meeting, several representatives from WHEDA discussed how the organization works with a variety of people – from would-be homeowners, to municipalities, to banks and other lending institutions – to assist in the common goal of spurring economic development.
Kim Plache, who helps administer WHEDA programs within Walworth County, and Farshad Maltes, economic developer with WHEDA, discussed new market tax credits with CDA members.
The federal new market tax credits are generally applied toward so-called “underserved communities,” Maltes said, but can benefit growing communities, such as Whitewater, as well.
The tax credits can be applied over a 7-year period and cover 39 percent of the expenses within a project. Funds can be applied toward a number of efforts, including land acquisition, architectural design costs and other pre-development planning activities.
Borrowers typically decide who receives tax credits, Maltes said, but WHEDA helps facilitate and collaborates frequently with investors and other parties involved in making pivotal decisions.
The CDA was receptive to the presentation, and members expressed a desire to continue ongoing dialogue with the organization.
“We’re really pleased. We’re enthused,” CDA Chair Jeff Knight said. “There’s a lot of activity going on right now in Whitewater.”
Plans call for Plache to revisit the CDA at an unspecified point in the future to further discuss how WHEDA services can help bolster housing stock within the city.
In other recent business, the CDA approved a proposal to submit a grant request to the Wisconsin Economic Development Corporation (WEDC) for $250,000 as part of the city’s capital catalyst fund.
Touted as an opportunity to provide support to entrepreneurs within the community, the fund is nearing the first stage of completion after receiving $150,000 in matching funds from WEDC in February.
The first phase has officially been “closed out,” Knight said. He asserted all of the allocated funds have gone toward specific projects. Much like the first phase, the CDA will continue to provide a dollar-for-dollar match on all grants received in the second phase.
“We’re moving on to the next phase,” Knight said. “Between the loans and equity, we’ve done quite a bit in a short amount of time. It’s exciting. Whitewater is on the move.”
If approved, the CDA has already earmarked a portion of the $250,000 matching grant funds toward an initiative known as Spark.
Local entrepreneur Andrew Hoeft recently spoke about the Spark initiative, which is designed to help budding business owners – primarily students at the University of Wisconsin-Whitewater – bridge the gap between the idea and implementation phases.
“We want to build a program … to help people get to a point of next steps,” Hoeft said.
The CDA is in the process of establishing a formal corporation to assist with equity investments within the capital catalyst fund.
