Embed Size (px)
DESCRIPTION
Joanie Perry Director, Office of Economic Development Georgia Department of Community Affairs
Citation preview
Georgia Department of Community AffairsCDBG Economic Development
A session devoted to the topic of Redevelopment Opportunities
GENERAL OVERVIEW
Joanie PerryDirector, Office of Economic Development
Georgia Department of Community Affairs
Page 4 Economic Development | 12-07-10
Overview
Redevelopment in general is a very relevant topic given today’s economic conditions.
DCA is very actively promoting redevelopment through a variety of programs and a new initiative that is focusing attention on the 100 Main Street and Better Hometown cities.
Page 5 Economic Development | 12-07-10
Local governments can implement a broad range of redevelopment activities
DCA’s interest and focus:▪ Opportunity Zones is one of 3 strategic goals for the
department; goal is to have Opportunity Zones in 50 communities by 6-30-11. To date, there are 46 Zones in 37 communities.
▪ CDFD has placed major emphasis on redevelopment with the Opportunity Zone Program, Revitalization Area Strategy (RAS) and the Redevelopment Fund (RDF) set-aside.
▪ Commissioner Beatty creates the BoomTown Initiative to celebrate 30 years of Main Street with a strategic focus on redevelopment incentives the department can offer.
Page 6 Economic Development | 12-07-10
Burke Walker
Northeast GeorgiaRegional Commission
Page 8 Economic Development | 12-07-10
Source and Use – Elberton W.O. Jones Building
Source Amount Use Amount
DD RLF $ 192,492 Rehabilitation $ 192,492
RDF $ 500,000 Rehabilitation $ 480,000
Grant Administration $ 20,000
DDA $ 151,946 Equity (building) $ 151,946
Total $ 844,438 Total $ 844,438
Page 9 Economic Development | 12-07-10
Elberton Community Timeline
• 1990 Elberton Mainstreet established• 1998 Elberton DDA established• 2001 Elberton W.O. Jones storefront purchased• 2003 Elberton W.O. Jones building available for
purchase• 2004 HSR / Conditions Assessment completed• 2005 RDF Application / City Resolution
Page 10 Economic Development | 12-07-10
Elberton W.O. Jones Building
Page 11 Economic Development | 12-07-10
Elberton W.O. Jones Building Before
Page 12 Economic Development | 12-07-10
Elberton W.O. Jones Building After – Success!
John KingeryCredit Manager
Georgia Department of Community Affairs
Page 14 Economic Development | 12-07-10
Science - Ratio Calculations and Number Crunching
Art - Interpretation and Decision Making
The Art & Science of Credit Analysis
Page 15 Economic Development | 12-07-10
The State takes “informed risk”
• Public financing for economic development is most typically “gap financing.”
• State economic development programs take risks many private lenders will not take, or will not take alone.
• However, as stewards of taxpayer resources, the State must invest the limited funds available for economic development in VIABLE projects that will actually create jobs and generate private investment.
IT’S A DELICATE BALANCE!
Page 16 Economic Development | 12-07-10
Funding In the Grey Area: Look for Positive Attributes
Strong Management
Marketplace Opportunities
Access to Capital
Cash Flow
Strong Commitment by Local Leadership
Page 17 Economic Development | 12-07-10
“Making it work”Underwriting public financing requires:
▪ Flexibility▪ Keeping an eye open for potential▪ Remembering the public purpose▪ Looking at the “whole” project
Not a rigorous quantitative scoring method!
Page 18 Economic Development | 12-07-10
Credit Indicators:• Sales Trends• Profitability• Management• Cash Flow Trends• Working Capital
Adequacy• Capitalization• Industry Conditions• Years in Business
• Business Plan• D&B Rating• Equity Injection into
project• Bank Participation in
project• Cash reserves/lines of
credit• Personal credit of
principals
Things toRemember
Page 20 Economic Development | 12-07-10
Things to Remember
• Describe your project and jobs created/retained
• Document need, costs and support of banks & businesses
• Debt – credit underwriting and terms
Page 21 Economic Development | 12-07-10
Program Contacts:Joanie Perry – Director of Economic Development
(404) 679-3173 [email protected]
Nyanza Duplessis – EIP Loan and RDF Program(404) 679-0668 [email protected]
John Kingery – Credit Manager(404) 679-1586 [email protected]
Brock Smith – Employment Incentive Program(404) 679-1589 [email protected]
