1. Financial Roundtable Association of Defense Communities
Redevelopment Conference
Monterey, CA
September 30, 2019
Craig Seymour
RKG Associates, Inc.
Boston, MA & Alexandria, VA

2. Framework for Funding and Financing New Development, Redevelopment & Special Projects
Economic Development is …….
Creating jobs
Enhancing tax base
Attracting companies
Retaining companies
Retaining and Enhancing our Military Assets
Who Benefits?
The military department
The community (local, regional, state)
What is the “Project”
Supporting infrastructure
Attracting and Retaining key suppliers
Reuse of BRAC facilities
Realignment for new/enhanced missions

3. Funding vs Financing
Funding is the source of monies used to pay for different elements of an economic development “project”
Financing is about how the cash flows are structured to achieve the sponsor’s goals and objectives
A source of funding must be in place before financing options can be applied
Funds can be provided by:
Public – grants, bonds, tax revenues, …..
Private – debt, equity
Hybrid – P3, P4

4. Public Funding Special Assessments Other sources of revenue Taxes
General Fund Revenues
Property taxes
Sales and Income taxes
Other special or dedicated taxes
Special Assessments
e.g. Business Improvement Districts
Impact fees
Other sources of revenue
Surcharges, RE Transfer tax

5. Private Funding Equity and Debt Value Capture Incentives
Most seek to leverage public monies
ROI driven
Value Capture
Tax Increment Financing
New property tax revenues to support debt
New income and/or sales tax revenues
Incentives
Density bonuses
Tax incentives
Abatements
Shared costs (of infrastructure)
Social incentives (e.g. affordable housing or job creation)

6. Financing Options Public Private Municipal Bonds Grants
Tax-exempt/public purpose – Federal, State, Local
Taxable/private purpose – more expensive
Recourse/Non-recourse to underlying jurisdiction
Grants
MassWorks, EDA, HUD
Favorable Loan programs
HUD, EDA, other agencies
Environmental/Green Bonds
Private
Equity
Developer vs. Pension Funds
Philanthropic Investors
Debt
Traditional bank loans, bonds
Credit assistance programs
Financing Options