The Federal Way City Council unanimously approved the use of New Markets Tax Credits for the Performing Arts and Event Center on Tuesday.

Of the $9.5 million in allocations, the city will net a little over $2 million.

A nonprofit, run by Federal Way Finance Director Ade’ Ariwoola and former mayors Mike Park and Mary Gates, will oversee the funds. They are tasked with delivering a report to the City Council on an annual basis.

Since the Performing Arts and Event Center was approved in 2014, city officials have worked to acquire New Markets Tax Credits, applying three times before they were granted.

Although some additional funds might be available if other projects fall through, officials working on the project said once the Performing Arts and Event Center is finished being built, it will become much harder to receive anymore allocations. City officials announced last week the PAEC’s grand opening will be Aug. 19. The New Markets Tax Credits program is a federal program that incentivizes community capital investment in businesses and low income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in “community development entities.”

The program was formed in 2000 as part of the federal Community Renewal Tax Relief Act, designed to spur economic development.