Dakota Business Lending (DBL) recently closed an allocation of $7,500,000 in New Markets Tax Credits (NMTC) to support the rebuilding of Fargo Moorhead Community Theater (FMCT)’s theater in downtown Fargo.
For 79 years, FMCT has been providing access to performing arts education and theatrical experiences to the region. They have been operating out of the Hjemkomst Center in Moorhead since 2021, after having to vacate and demolish their original 52-year-old auditorium due to structural issues. A new 38,000 square foot, 6-story, mixed use building in downtown Fargo broke ground in May of 2024 and will house a new FMCT theater, in partnership several community organizations including Kilbourne Group, Global Development, the City of Fargo, Bell Bank, and U.S. Bank. The new FMCT venue will include a 420-seat theater, 45 foot proscenium, orchestra pit, and other various meeting rooms, studios, offices, and storage for performances and classes, and will allow the FMCT to provide even more accessible and affordable programs, performances, and experiences to the community. The property will also include five floors of apartments and over 400 additional parking spaces. This project will create up to 12 new jobs and 75 short-term construction jobs over the next two years.
The expansion project qualified for NMTC financing because it is located in an eligible area in North Dakota. It will also bring accessible, high quality, direct and indirect jobs for low income communities and provide a variety of cultural, educational, and accessible goods and services to low-income populations in the area.
FMCT’s expansion project would not be possible without the $7.5 million NMTC allocation from Dakota Business Lending, which helps close a funding gap and ensure that the company can continue to produce high quality services for their patrons. The funding from the NMTC program allows the company to move forward immediately with their expansion efforts and begin job creation opportunities without delay. “The NMTC financing is covering a significant portion of our interior construction costs, which made this very ambitious project possible and will get the FMCT project to a certificate of occupancy in the next 15 months,” explained Judy Lewis, Executive Director at FMCT. “The credit significantly lowered the cost of lending so we’ll be able to allocate more resources to programming, education, and community engagements sooner than we would have been able to without. The NMTC is such a gift to all of us.”
The project is bringing in several community partners and will have lasting impacts on the broader city, economy, and community, particularly in downtown Fargo. “Fargo is grateful to Dakota Business Lending for New Markets Tax Credits and was eager to support that program… The redevelopment project is a great public/private partnership between the FMCT, the City of Fargo (which provided parking), and the Kilbourne Group (who is building 168 apartments,” shared Jim Gilmour, Fargo Strategic Planning Director.
“The City of Fargo is looking forward to the Fargo Moorhead Community Theater opening their new theater in the core of the Downtown,” added Tim Mahoney, Mayor of Fargo. “The arts are extremely important to the redevelopment of Downtown and FMCT is going to be a major attraction to bring people Downtown.”
Dakota Business Lending’s NMTC allocation for this project was monetized by selling the tax credits to an investor in exchange for 7 years of income tax credits as provided by the program. The actual investment from the allocation into the project ends up around 17-20% after selling the tax credits and cost of financing.
For more information on the NMTC program, visit www.dakotabusinesslending.com/loans/new-markets-tax-credit
