City officials rejoiced Thursday after learning they’re one step closer to receiving the highly coveted New Markets Tax Credits, federal funding that will help pay off the $33.18 million Performing Arts and Event Center.

“As mayor, I’m extremely excited about the news we have received today regarding the release of funds for New Markets Tax Credit allocations,” Ferrell said in a phone interview while in California. “This is an incredibly positive step in our efforts to receive these funds and we’re very heartened that Clearinghouse Community Development Financial Institution received allocations of $65 million.”

Ferrell said the city has received on multiple occasions commitments of an allocation if they did receive tax credits, however, he doesn’t yet know how much money the city will receive.

In the past, Clearinghouse has indicated they will give the city $10 million of qualified equity investment or about one third of that in net funds.

“The news they received these funds is very encouraging,” Ferrell said. “We will certainly keep the Mirror and the people of this community up to date as news develops.”

Economic Development Director Tim Johnson, who once served on the California-based Clearinghouse’s Board of Directors, said underwriting on the funds could take months, but the city has waited on the tax credits for over a year.

“I think this is the best news I’ve gotten in a longtime,” he said.

The U.S. Department of Treasury announced on Thursday 120 community development entities from around the country were awarded allocations. Approximately $7 billion in tax credits were awarded.

Ferrell said other community development entities the city was working with include $80 million for Chase Bank, $80 million for Advantage Capital, $50 million for Nonprofit Finance Fund and an unknown amount for Stonehedge Community Development Fund.

The city needs between $6-$7 million, or $20 million in qualified equity investment, to pay the Performing Arts and Event Center’s balance.

According to Finance Director Adé Ariwoola, the city has secured $21.3 million for the arts center and is still waiting on the tax credits and naming rights, which they expect to generate $3.5 million, to fund the total balance.

As of the end of September, the city has spent $13.3 million in construction costs and has a remaining $8 million.

Of the millions secured, which includes grants and a Community Development Block Grant Section 108 loan, $898,705 was raised by the community.

Joann Piquette, the president of the Federal Way Coalition of the Performing Arts, said the coalition has an additional $41,700 in pledges as well.

“We’re gearing up for the holidays and suggesting people “gift” a seat name for those who have everything or are just hard to please,” Piquette said, referring to the 700-plus seats the arts center will hold. “More than one name can fit on the seat arm plaque. We also have donations in memory of someone who enjoyed the performing arts.”

The Performing Arts and Event Center is expected to open in summer 2017.

For more information, visit www.federalwaypacc.org.