1. The Art of Economic Development Finance
EDCC Pre-Conference Workshop
Presented By
Katie Kramer
Vice President
Council of Development Finance Agencies

2. Today’s Objectives & Course Notes
Today’s Agenda
Parameters for training – limited time, need to go much more in-depth
Questions – ask them often
Always engage proper legal counsel

3. Audience Interaction
Tell us about yourself – Who are you? Where are you from? Shout it out!
What do you want to learn about today? Shout it out!
What development finance tools have you heard about? Shout it out!
Which development finance tools do you want to most learn about? Shout it out!

4. What is Development Finance?
Development finance is the efforts of local communities to support, encourage and catalyze expansion through public/private investment in physical development/redevelopment and/or business/industry.
It is the act of contributing to a project/deal that causes that project/deal to materialize in a manner that benefits the long term health of the community.

5. What is Development Finance?
Development finance requires programs and solutions to challenges that the local environment creates.
Economic developers are the bridge between government and business and often direct the vision of a sound financing toolbox.
Regional advantages can enhance development finance efforts through partnership, cooperation and mutually advantageous programming.

6. What Does DF Include?
Debt, equity, credits, liabilities, remediation, guarantees, collateral, credit enhancement, venture/seed capital, early stage, workforce, technical assistance, planning, short-term, long- term, incentives, gap, etc.
Proactive approaches that leverage public resources to solve the needs of business, industry, developers and investors.

7. What DF Does Not Include
Free handouts and unabashed subsidies
Duplicative assistance
Poor due diligence and transparency
Poor oversight and performance measures
Irrational responses to immediate challenges

8. Why is DF Important?
Businesses need working capital and the ability to invest in themselves
Developers need assistance to achieve an acceptable ROI
Communities need infrastructure and amenities
Citizens need opportunities for advancement – jobs, small business, education, etc.
Regions need economic prosperity

9. Development Finance Agency (DFA)
Development finance agencies (DFAs) can be either public or quasi-public/private authorities that provide or otherwise support economic development through various direct and indirect financing programs.
DFAs may issue tax-exempt and taxable bonds, provide credit enhancement programs, and offer direct lending, equity investments, or a broad range of access to capital financing mechanisms.
DFAs can be formed at the state, county, township, borough or municipal level and often times have the authority to provide development finance programs across multi-jurisdictional boundaries.

10. DFA Examples
Industrial development authorities, boards or corporations
Economic development authorities, corporations or councils
Special purpose authorities (port, transportation, parking, development, energy, air, water, infrastructure, cultural, arts, tourism, special assessment, education, parks, healthcare, facility, etc.)
Local and community development authorities, corporations or institutions
Departments of development or commerce and finance authorities, divisions, or departments within state and local government
Business development corporations, centers or districts
Development and redevelopment authorities, commissions or districts

11. High Impact DFA
Every state has authorizing language to allow for the creation of the DFAs
DFAs that are able to manage and implement a variety of toolbox programs are considered “high performing”
For those communities that do not have the means or capacity to create a high performing DFA, partnerships are critical

12. Colorado Housing & Finance Authority

13. Colorado Housing & Finance Authority

14. DFA of Summit County, OH

15. Chester County EDC, PA

16. Landscape of Tools – 100s of Them
Tax-Exempt Bonds
Microlending
New Markets Tax Credits
Linked Deposit Programs
Grants
Tax Increment Finance
504 Loans
CRA Requirements
Collateral Support
Impact Investing
PACE
Revolving Loan Funds
EB-5
Seed & Venture Capital
501(c)3 Bonds
Historic Tax Credits
Special Assessment
Industrial Development Bonds
Mezzanine Funds
Credit Enhancement
Tax Abatements

17. Landscape of Tools – 100s of Them
Federal – Over 170 federal financing programs for everything you can imagine – small business, redevelopment, environmental remediation, transportation, water, rural development, urban infill, underserved markets, capital improvements, energy, minority owned businesses, etc.
State – Thousands of state programs including grants, loans, tax credits, subsidies, tax incentives, bonds, etc.

18. Economy, Environment & Equity
Many roadblocks to supporting sustainable development including
Credit quality – borrowers, project, community
Disinvestment – crumbling infrastructure, stressed workforce
Environmental challenges – blight, contamination
Costs – sustainability is expensive
Resistance – equitable development is threatening to many
Rebounding economy – easier paths to success (short lived as they may be)

19. Economy, Environment & Equity
How do we address these roadblocks?
Analytics – What is the cost of doing development in the old manner and how can we monetize the savings to be sustainable?
Scope – What problem are we trying to solve and can that problem be solved with a wider scope? One-offs hurt progress.
Local Initiative, Wide Support – How do we engage the local community to not only support equitable development but to also invest in it? And, how do we get larger players (private entities) to foot the bill?
Leverage – Using small public dollars to leverage large private investment

20. Building the Development Finance Toolbox

21. Introducing the Toolbox Approach
The Toolbox Approach is a full scale effort to building local and regional financing capacity to serve and impact a variety of business and industry needs.
This is an investment in programs and resources that harness the full spectrum of a community’s financial resources and is a dedication to public/private partnerships.

22. Why the Toolbox Approach?
Wide variety of programs already exist to help with both general and targeted financing needs (yet we continue to seek new programs and struggle to gain access to scarce sources of funding)
One size does not fit all and there are different instruments for different users
More parties can be involved with a comprehensive approach – banks, thrifts, educational providers, investors, angels, developers, planning authorities, etc.
Diversity is very important in development finance efforts.

24. Bedrock Tools

26. Bonds
Bond use dates back over 100 years with the tax reform act of 1986 shaping today’s use
A bond is a loan. A loan is a promise to pay
Units of government (called issuers) borrow routinely in the tax-exempt bond market by pledging revenues to pay back the bonds (loans)
Investors (bond buyers) buy these loans and are afforded exemption from income tax on interest income on these investment
Government (GO) Bonds are tax-exempt, used for public projects
Private Activity Bonds (PABs) are tax-exempt, utilized for economic development

27. What do Bonds Finance?
Roads, bridges, sewers, water treatment plants, dams, city halls, prisons, schools, hospitals, libraries, YMCAs, museums, parks, swimming pools, community centers, universities, stadiums, theaters, music halls, clinics, recycling plants, energy generation facilities, solar fields, small manufacturing facilities, non-profits and thousands of other examples.

28. Types of PABs
Exempt Facility Bonds – Can be used for airports, docks, wharves, mass-community facilities, etc.
Qualified Redevelopment Bonds – Infrastructure projects that do not meet the requirements of GOs may qualify for tax- exemption if they meet several tests of "qualified redevelopment bonds; " e.g., proceeds used for redevelopment purposes in designated blighted areas, etc.
Qualified 501(c)(3) Bonds – Bonds used to finance projects owned and used by 501(c)(3) organizations. Two types - hospital bonds and nonhospital bonds
Qualified Exempt Small Issues – IDBs for qualified manufacturing projects including purchase, construction, extension and improvement of warehouses, distribution facilities, industrial plants, buildings, fixtures and machinery.
Aggie Bonds - Support beginning farmers and ranchers with eligible purchases of farmland, equipment, buildings and livestock.
Other Revenue Bonds – Allow revenue-generating entities to finance a project and then repay debt generated revenue. Toll roads and bridges, airports, seaports and other transportation hubs, power plants and electrical generation facilities, water and wastewater (sewer).

29. Why Communities Use Bonds?
Opportunity to invest in projects and businesses and the ability to influence ROI in development projects
Easy to promote and monitor with performance measures
Low cost and secure source of support to industry
Can issue on conduit basis without backing (IDBs)

30. Why Industry Uses PABs?
Lower interest rates (conventional loans vs. tax- exempt)
Tax-exempt status to buyers of bonds – attractive
Lower cost to borrower
Cheaper money (but not free)

31. Important Players
Issuers – 55,000+ nationwide, must have authority to issue
Bond Counsel – legal public finance experts
Underwriters – sells and/or places the bonds in market
Trustee – fiduciary agent for the bondholders
Investors – those who actually purchase the bonds
Financial Advisor – independent reviewer for issuer
Rating Agencies – independent credit review entities

32. Strategies for Success
Engage Legal Counsel – Make sure you have all of the necessary qualified legal opinions before completing a bond transaction.
Program Management – Proper oversight is necessary for a bond program to meet the needs of the community it serves. Issuers should dedicate adequate staff and resources for training, day to day management, and be able to regularly interface with partners on a project.
Marketing & Outreach – Think creatively in marketing bonds the right target audience. Make sure that potential users know how bonds may benefit their company and how they could be an element of a larger more comprehensive financing package.
Ongoing Compliance – Be prepared to manage the bond for the life of the transaction with regular and routine monitoring and reporting.

33. Targeted Tools

35. Targeted Tools Represent fastest growing area of development finance.
Goal of targeted tools is to catalyze investment and transform the real estate values of a geographic area.
Three general categories:
1. Special assessment district financing 2. Tax increment financing 3. Tax Abatement
These two categories often overlap and work in conjunction with each other as a layered financing mechanisms.

36. Targeted Tools: Special Assessment

37. Special Assessment District Financing
Mechanism by which business, industry, commercial districts and governments generate funds by applying special tax assessments on geographic areas.
Two general structures:
Business and Neighborhood Districts
- Self assessment - BID, SID, NID, etc.
2. Government Districts
- Sometimes self-assessed, often govt. created - SSD, SAD, CFD, CDD, TID

38. Business & Neighborhood Districts
Business and Neighborhood Districts help to support a variety of services: - security and safety patrols - snow removal - promotions, marketing and events - graffiti removal - beautification and cleanliness programs - economic development
Typically run by property owners in defined area
Property owners voluntarily impose tax to provide for infrastructure improvements or enhanced public-type services

39. Government Districts
Services and improvements directed by local government in defined area
Can be initiated by property owners or by local government
- Special Services District (SSD)
- Special Assessment District (SAD)
- Community Facilities District (CFD)
- Community Development District (CDD)
- Transportation Improvement District (TID)

40. Benefits of Special Assessment
Can be leveraged with bonds
Not development-dependent
Can span two or more jurisdictions
Generally strong collection enforceability – lien status
Can be combined with TIF

41. Challenges of Special Assessment
Overburden to property owners
Less likely to approve other necessary tax increases?
If assessment can be imposed with less than unanimity, litigation is common by non-approving property owners

42. Example: RiNo Art District BID

43. Example – Golden Triangle BID

44. Example – Minneapolis SSDs

45. Targeted Tools: Tax Increment Finance

46. What is TIF?
Special authority provided to a local governmental jurisdiction which allows them to allocate specific tax revenues towards the redevelopment, development or renovation of the built environment.
A mechanism used to capture the future tax benefits of real estate improvements to pay the present cost of specific improvements.
TIF is used to channel incremental taxes toward improvements in distressed or underdeveloped areas where development would not otherwise occur by using the increased property or sales taxes that new development generates to finance qualified costs related to development.

47. Uses of TIF (generally)
Infrastructure Improvements
Site Preparation
Facility / Amenity Construction
Such as:
Public Infrastructure
Land Acquisition
Relocation
Demolition
Utilities
Debt Service
Planning Costs
Direct Costs of Development (typically only in blight situation)

48. Why Use TIF?
Advances economic development or redevelopment projects that otherwise may not move forward in today’s economy
Attracts economic development prospects by having infrastructure financing plan in place
Allows localities to finance needed infrastructure that otherwise may not be financed in current fiscal environment, often ahead of development and at a higher level
Job creation
Preservation and strengthening of tax base
Shifts portion or all of financial burden for infrastructure to the private sector through the usage of special assessment

49. Who Controls TIF? States authorize enabling legislation.
Local governmental jurisdictions (city or county) designate districts or project areas.
Development agencies or other entities implement the program.
Private developers, real estate and financial institutions partner with development agencies.

50. Common TIF Developments
Mixed-Use
Residential
Commercial
Industrial
Amenity Creation
Retail Development
Transportation

51. Project Specific & District Wide TIF
TIF application is either project-specific or district- wide, depending on the scope of the effort: whether it is one site or an entire neighborhood.
Both methods also have limitations and varying levels of risk.
Project Specific: single project or single piece of property; less complicated with fewer parties; more risk since the success of the project often relies on one user.
District Wide: multiple users and potentially many property owners; transactions more complex and require significant due diligence; traditionally applied to large area of land or entire neighborhood to eliminate blight and deterioration or to support major infrastructure projects

52. Graphically Speaking

53. Strategies for Success
Due Diligence – Go through all the necessary steps to ensure an acceptable level of satisfaction. Take a conservative approach, request and verify data, be thorough, seek partnerships, don’t make assumptions.
Transparency – It is not enough to act transparent, you must actually be transparent. Conduct open meetings, provide open records, build with stakeholders, be prepared to compromise, and be creative in addressing conflicting objectives or interests
Accountability – Be accountable to stakeholders, report success and failure, draft policies that meet goals and objectives. Create a vetting process, establish a framework for community input, document steps, detail fiscal impacts to taxing jurisdictions.

55. Example: City of Milwaukee

56. Example: Atlanta Beltline

57. Targeted Tools: Brownfields, PACE, Abatements

58. Brownfields
Targeted financing tools play major role in both clean-up and vertical development on brownfield sites.
Common targeted tools use in brownfield redevelopment include:
Tax Increment Finance
Loans (federal, state)
Grants (federal, state)
New Markets Tax Credits
New programs emerging such as Clean Renewable Energy Bonds (CREBs) and Qualified Energy Conservation Bonds (QECBs) to address brownfield redevelopment

59. Property Assessed Clean Energy (PACE)
Energy finance is fastest growing area of the development finance industry
PACE now authorized in 30+ states
Essentially a mechanism for using special assessment on both residential and commercial properties to pay off long term investments in EE/RE
Very effective and showing strong financial returns for communities, business and residential development

60. Tax Abatements
The reduction of an entities tax liability for the purpose of job creation, investment or retention/location of business in community/state
Widely used by all 50 states
Performance based approach emerging
Highly political, often a zero-sum outcome with inner state/city business relocations
#1 tool in state development agencies toolbox
Notable abuse, misuse and failures

61. Investment Tools

63. Investment Tools: Tax Credits

64. Investment Tools
Investment tools, such as tax credits play a major role in local economic development efforts
States have created hundreds of programs with both targeted and broad based functions
Federal government has numerous programs which are proving to be very successful
Response to dwindling federal resources for financing development over the past 15 years
Both federal and state govt. recognize power of credits – hundreds of programs
Programs have emerged based on need for niche financing
Can help capitalize new business ventures or solidify project financing for real estate projects

65. Benefits of Tax Credits
Fill a variety of roles in many types of marketplaces (urban, suburban, etc.) with targeted assistance (rehab, low-income)
Increase ROI for investors
State and local administration and control
Bring many different players to the table beyond traditional sources

66. Basics of Tax Credits
Investors receive a state/federal credit on their tax liability for qualified cash investments in projects/deals
Investors must demonstrate, with written proof, that the resource commitment has been made and in turn the distributor of the tax credit is only authorized to issue credit based on actual outlays of these resources
Investor then takes the credit on govt. tax liability. Can be personal, business, corporate or other liability
In some cases, the credit is transferable to others through sale creating a secondary financial market

67. Distinctions & Challenges
Require considerable oversight and understanding for qualified investments
Require high level of disclosure
Performance based tool so must be proved by investor
Easier financing such as loans, grants, bonds, etc., reduce the interest in credits
Misconceptions – often cited as corporate welfare
General lack of application and understanding across the board – little marketing, few concrete training options, projects hard to define, lack of federal oversight

68. Types of Tax Credits Low-Income Housing Tax Credits
Created in 1986 to promote the construction and rehabilitation of housing for low-income persons. States receive an annual inflation adjusted per person allocation for issuance of tax credits for qualified projects. Used to leverage private capital into new construction or acquisition and rehabilitation of affordable housing.
Historic Rehab Tax Credit
Rehabilitation tax credits were established to discourage unnecessary demolition of older buildings and to slow capital flight from older urban areas. This incentive offers a credit against total federal taxes owed, which is taken for the year in which the renovated building is put into service. The qualified rehabilitation credit is equal to 20% of renovation or construction costs, with pre buildings in non-residential income-producing use qualifying for a 10% credit.
New Markets Tax Credits
Created to address the lack of capital available to business and economic development ventures in low- income communities. The NMTC provides the incentive of a federal tax credit to individuals or corporations that invest in Community Development Entities (CDEs) working in targeted low-income communities.

70. State Programs
Every single state and the District of Columbia have tax credit programs that address a number of different investment areas for machinery, low- income, historic rehab, venture capital, brownfields, industries, etc.
CDFA State Financing Program Directory

71. Example: Colorado Advanced Industries

72. Strategies for Success
Know the Programs – Invest in understanding all available credits at both federal and state level and prepare fact sheets on available credits.
Explain the Benefits – Categorize available credits for real estate property for potential investors, developers – they often do not know if a site is historic, brownfield or eligible for NMTCs (or state credits).
Engage the Financial Community – Many banks want deal flow and will buy and sell credits, get them active in available projects.
Create Companion Programs – Consider mirroring credit programs that match state/federal programs.

73. Access to Capital Lending Tools

75. Access to Capital Lending Tools: Traditional

76. Small Business Investment
Small businesses make up 99.7% of all firms, employ half of all private sector employees and account for 45% of the total U.S. payroll.
Small businesses have also generated 60-80% of all new jobs annually over the past decade.
Economic developers, however, have traditionally neglected small business development in pursuit of larger companies.
Small businesses need access to affordable, reliable capital to get started, for their day to day operations and for new investment.
They need “working capital” to get through on a day to day basis.
Communities that offer access to capital options are building relationships with their small business community as a partner and investor.

77. Traditional Access to Capital Tools
Access tools cover a wide variety of programs that are tailored to address specific industry needs, for businesses in different stages of development, largely at the local level. They can include:
Revolving Loan Funds
Mezzanine Funds
Loan Guarantees
Linked Deposit Programs
Collateral Support Program
Microenterprise Finance

78. Revolving Loan Funds
Gap financing measure primarily used for development and expansion of small businesses which are unable to obtain financing through traditional sources.
Uses both public and private sector funds for capitalization (federal resources available).
Self-replenishing pool of money, utilizing interest and principal payments on old loans to issue new ones.
RLFs don’t compete with convention funding sources, they compliment them.
Capital
Loans
Payment

79. Federal SBA 504 Program
Operated through Certified Development Companies which can work in a state, region or nationally.
Approximately 275 CDCs nationwide.
Provides loans to small businesses for fixed assets and M&E.
Combination loan structure to mitigate risk of private lender by providing federal resources
50% - Private lender
40% - SBA loan
10% - Borrower equity
SBA portion is fully backed by SBA guarantee
Many rules and regulations.
Intended for small businesses but definition and limitations can be stretched.

80. Mezzanine Funds
Gap financing measure for growth-oriented small businesses that may not entirely qualify for loans or investments through traditional lending.
Mid-level financing – Less risky than equity or venture capital but more risky than senior bank debt.
Business usually has to cede some management or institutional control or give an ownership position to lender.

81. Loan Guarantees
Allows private sector to make loans and investments without carrying higher levels of risk.
These programs shift risk from private sector to a third party – typically a governmental entity – by “guaranteeing” a portion of a loan or revenue source.
Federal government operates several programs while states and cities are also now providing guarantees.
Communities with strong balance sheet should consider building a program for projects that may need additional collateral support.

82. Linked Deposit Program
Uses power of government deposits to artificially buy down interest rates for small business borrowers
Govt. places deposit with bank. Bank earns interest off of govt. deposit.
In return for this deposit, bank provides low- interest loan to credit challenged borrowers
Borrower savings typically 2-3%
Useful when loan is to expensive or to enable larger loan

83. Collateral Support Program
Program pledges deposit with lender as collateral for specific loan
Useful for loan-to-value / collateral shortfall
Seen growth of these programs in recent years – real benefits for manufacturers and other equipment-based sectors

84. Microenterprise Finance
Microenterprises are the smallest of the small businesses. Typically defined as business with: or fewer employees - Capital needs of less than $35, Average loans of $7,000
24 million microenterprises in the U.S.
Perceived by lenders as having a very high level of risk.
SBA Microloan Program – Provides very small loans to start-up, newly established, or growing small businesses. SBA makes funds available to nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to $35,000. The average loan size is about $13,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.
NSF SBIR/STTR – Provide competitive grants for small business development for high-tech and innovation industry business development.

85. Strategies for Success
Conduct a Needs Assessment – A variety of business financing programs exist in every community. Find out how you can create programs to complement them.
Develop Partnerships – Discuss opportunities with the banks in your community to find out how you can partner together in creating new programs or unlocking capital in existing programs.
Know the Business Lifecycle – Understand the financing needs of the business owners in your community and tailor programs to be supportive.
Diversify Risk – Diversifying risks across a portfolio of programs is essential to long term success and growth.

86. Example: Colorado Lending Source

87. Example: STL Partnership

88. Example: Rural Electric Economic Development

89. Federal Support Tools

90. Federal Financing
Federal government plays a significant role in economic development financing and currently operates over 170 programs across 17 federal agencies.
39 federal programs offer assistance for energy related projects,
25 federal programs provide some type of access to capital
12 programs help address brownfield financing
7 provide resources for starting up or accessing a revolving loan fund
25 address innovation finance opportunities
9 programs provide resources to U.S. based business trying to access global markets

91. Support Tools – Unique Partners
Some of the most interesting and perhaps beneficial programs within the federal government are located in non-traditional agencies.
This presents both a challenge and an opportunity.
Challenge – finding and identifying the programs, getting engaged, resources, etc.
Opportunity – these very unique and often targeted programs present a readily available resource to address your needs.

92. Support Tools – A Few Programs
HUD – CDBG, 108 Loan
EDA – Public Works, Economic Adjustment, Planning
DOD – BRAC Adjustment Grants
SBA – 504 & 7(a) programs, many others
Treasury – New Markets, Bank Enterprise
National Science Foundation – SBIR/STTR
USDA – 40+ rural development programs

93. Strategies for Success
Understand the Opportunities – Over 170 programs exist, explore these options and understand their capacity to assist your projects
Consider Layering – Many federal programs can be used in combination with other federal resources. Layering resources is a critical component of using federal assistance.
Relationships – Federal funding is relationship based. Engage your federal district or regional office early and often. Make these agencies a partner in your project and community.
Persistence – The federal government is a bureaucracy. The first answer is usually “no” but persistence pays off. Work the agencies, push the project and keep them engaged.

94. Emerging Development Finance Tools

95. Food Systems Finance
How do we support financing of food systems, grocery stores, farm-to-table, urban agriculture and the connection between health and eating?
Models emerging that monetize the savings of healthy eating to show financial return for investment in food systems
First time farmer financing
USDA business & industry loans
Chase and Goldman Sachs – urban fresh food initiatives (co-lending with CDFIs)
TIF and Special Assessment to address food deserts
Michigan Good Food Fund
Colorado Fresh Food Financing Fund
Next Generation Farmer Loan (NGFL) Program

96. Clean Energy Finance
Significant shift in development finance to support clean energy finance models over past six years. Examples:
Bond Financing – Toledo, Ohio EE/RE bond/loan program; Morris Model in New Jersey supporting governmental energy savings
Solar Energy Loan Fund – St. Lucie, Florida EE/RE home and commercial loan fund capitalized by federal grant and now three CRA investments, virtually no defaults
Secondary Market Purchases of Loan Funds – New York through EPA SRF credit enhancement; Pennsylvania
Property Assessed Clean Energy (PACE) – Over 30 states now authorize

97. Impact Investing - Foundations
Foundation impact investing meets traditional public finance
Harvard Institute for Responsible Investing
Kresge Foundation
Council of Development Finance Agencies
What can we do in this space? Unlimited opportunity
Credit enhancement, direct investment, loan purchase, fund capitalization, TIF financing, etc.

98. Implementing the Toolbox

99. Keys to Toolbox Success
Comprehensive effort involving bold thinking, innovative planning, considerable strategizing and a fully supported, cooperative effort from all involved.
Agencies that fail to build partnerships typically fail to implement the toolbox.
Bring stakeholders to the table – don’t try to operate all of these programs on your own.
Partnerships should exist on the local, county, regional, state and federal level through the public, private, non-profit communities.

100. Partnerships Matter

101. Sharing Risk, Credit & Expenses
Very few agencies are able or willing to accept all of the risks involved in the toolbox approach.
Fewer have the resources or capacity to operate all of these programs.
However, agencies within your community do have this capacity through their design and fee structures and should be part of the toolbox partnership (i.e. CDCs for the 504 program, etc.).
The private sector should be considered a risk and credit sharing partner.
Private sector is eager and willing to participate and they provide far greater depth of risk ability then other partners.
State and federal laws mandate private investment (CRA). Use this to your toolbox advantage.
Private sector also has the resources to absorb the expenses of running these programs and they will expect to earn a return.

102. Think About Financing
Create a Strategic Financing Plan that mirrors the community’s master plan and economic development strategy.
Seek innovative strategies – think about industries not served by existing programs and create program that serve these needs.

103. Think About Financing
Operate programs with performance based measuring in place. Track returns closely, be accountable, report findings and use the internet.
job creation, investment, taxes, blight removal, property values, population attraction, transformation, investment return, etc.
Consider policy and procedures closely and engage in healthy dialogue to determine appropriate use of financing tools.
Decide: Developer/business driven or community driven policy?

104. Critical Development Finance Elements
Defined Projects – A project is not a project until it is on one (maybe two) pages and clearly defined. That is what will attract investment.
Sources & Uses – Find revenues (sources), find expenses (uses) and keep it simple
Preference – Rural financing is a highly preferred investment class right now by the development community
Leverage – Find small amounts of funding and financing to leverage bigger amounts. Look where you might not think to look.
Complex – Financing today is complex, expect multiple sources of funding/financing to be part of your deal