1. Georgia Department of Community Affairs CDBG Economic Development A session devoted to the topic of Redevelopment Opportunities

2. GENERAL OVERVIEW

3. Joanie Perry Director, Office of Economic Development Georgia Department of Community Affairs

4. 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.

5. 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.

6. Page 6 Economic Development | 12-07-10

7. Burke Walker Northeast Georgia Regional Commission

8. Page 8 Economic Development | 12-07-10 Source and Use – Elberton W.O. Jones Building SourceAmountUseAmount DD RLF$ 192,492Rehabilitation$ 192,492 RDF$ 500,000Rehabilitation$ 480,000 Grant Administration$ 20,000 DDA$ 151,946Equity (building)$ 151,946 Total$ 844,438Total$ 844,438

9. 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

10. Page 10 Economic Development | 12-07-10 Elberton W.O. Jones Building

11. Page 11 Economic Development | 12-07-10 Elberton W.O. Jones Building Before

12. Page 12 Economic Development | 12-07-10 Elberton W.O. Jones Building After – Success!

13. John Kingery Credit Manager Georgia Department of Community Affairs

14. Page 14 Economic Development | 12-07-10  Science - Ratio Calculations and Number Crunching  Art - Interpretation and Decision Making The Art & Science of Credit Analysis

15. 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!

16. 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

17. 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!

18. 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

19. Things to Remember

20. 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

21. Page 21 Economic Development | 12-07-10 Program Contacts: Joanie Perry – Director of Economic Development (404) 679-3173 joanie.perry@dca.ga.govjoanie.perry@dca.ga.gov Nyanza Duplessis – EIP Loan and RDF Program (404) 679-0668 nyanza.duplessis@dca.ga.govnyanza.duplessis@dca.ga.gov John Kingery – Credit Manager (404) 679-1586 john.kingery@dca.ga.govjohn.kingery@dca.ga.gov Brock Smith – Employment Incentive Program (404) 679-1589 brock.smith@dca.ga.govbrock.smith@dca.ga.gov