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The New Market Tax Credits (NMTC) program is a powerful tool for driving economic growth and revitalization in areas across the nation that need it most.
To learn more about the transformative power of NMTC and how it has impacted local economies in North Dakota, we sat down with Ryan Aasheim, Chief Business Development Officer for the Greater Fargo Moorhead Economic Development Corporation (GFMEDC) and a member of our NMTC Advisory Board.
Check out what he had to say about how NMTC is helping shape the future of the Fargo-Moorhead region and beyond…
Q: Tell us a little about yourself and your background.
I have been the Chief Business Development Officer for the GFMEDC for about 5 ½ years and focus primarily on business growth and expansion in the primary sector. I am originally from Bottineau, ND, attended North Dakota State University (NDSU), and have called Fargo, ND my home ever since.
Q: How do you identify projects that qualify for NMTC and what criteria do you consider for recommending them?
The first step is looking at the geographic location of projects and focusing on areas in low-income and distressed census tracts, which is NMTC’s primary focus. For NMTC, we are looking for projects that are larger, ranging anywhere between $3M-$20M. The program can help businesses in many different industries, but given GFMEDC’s work in the primary sector, the projects we find are often in manufacturing. We are also looking at job creation, which is typically inherent in manufacturing projects.
Sometimes we are already looking into projects in these areas, but other times, we can use the New Market Tax Credits program as another tool in our toolkit to encourage projects to look at those areas in the market.
Q. Tell us about the low-income and distressed areas in the F/M region. What do they need and how can NMTC support that.
The F/M area has a diverse range of low-income and distressed census tracts, each with a unique kind of space, needs, and characteristics. There are several areas downtown, which are already pretty developed and include a variety of business activities, and then more industrial areas that have a bit more green space and opportunities for (re)development. These different areas give the NMTC program a lot of different options to work with.
“One recent NMTC project reconstructed a Boys Ranch warehouse…they took a building that needed a little bit of love and poured a lot of resources into improving and upgrading it into a beautiful redeveloped space for their battery technology manufacturing business. It’s the perfect example of how the NMTC program can help reenergize existing infill development.”
Q. How have NMTC projects contributed to job creation in the FM region?
NMTC-funded projects have created a range of good-paying jobs in several industries. Many of these jobs start at $20-$25/hour and provide opportunities for in-house and on-the-job training, offering upward mobility for those interested in career advancement.
Q. In what ways has NMTC improved infrastructure in low-income and distressed areas?
The NMTC can be pivotal in spurring infrastructure development in some of our region’s most underserved areas. One specific project led to improvements and development of roads, sewer, water, and power, setting the stage for future development and making this area more attractive for investment.
“When projects involve improvements or development of infrastructure, it helps de-risk projects for investors and serves as a signal to future investors that there’s promise in these developments. That’s the beauty of what programs like NMTC can do.”
Q. What metrics or indicators do you use to measure the economic impact of NMTC projects?
At the GFMEDC, we can measure economic impact through items like job creation, capital investment, and square footage utilization. We also utilize a third-party economist that provides an economic analysis of our work, helping us see the ripple effect of past projects on things like indirect job creation, increased sales in local business, tax revenues for local and state governments, and broader economic impacts on industries like real estate, financial, retail, legal, and healthcare.
Q. Describe the importance of partnerships between local businesses, community organizations, and investors in the success of NMTC projects.
Partnerships are at the heart of what we do at the GFMEDC, and the NMTC program is no different. These projects often involve complex financial packages, so there are a variety of entities and partners that can come together to help make these projects come to life. These can include local and statewide entities such as local lenders, the Bank of North Dakota, the ND Department of Commerce, commercial real estate developers, the SBA, and, of course, Dakota Business Lending.
Q. How do you see the future of NMTC evolving?
I look forward to seeing DBL continue to get NMTC allocations. The F/M region is a market that continues to grow and expand and with that, we need a lot of fuel to support these projects. NMTC has been extremely helpful in doing that work.
“We have a strong foundation to build on in this market, and there’s a lot of opportunities and assets to work with. The NMTC program helps us continue to elevate this impact and keep our foot on the pedal, and I’m excited to be a part of it.”
For more information about the NMTC program, visit our webpage.
