Georgia Department of Community Affairs CDBG Economic Development

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.


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.


Burke Walker

Northeast GeorgiaRegional Commission


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


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


Elberton W.O. Jones Building


Elberton W.O. Jones Building Before


Elberton W.O. Jones Building After – Success!

John KingeryCredit Manager

Georgia Department of Community Affairs


Science - Ratio Calculations and Number Crunching

Art - Interpretation and Decision Making

The Art & Science of Credit Analysis


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!


Funding In the Grey Area: Look for Positive Attributes

Strong Management

Marketplace Opportunities

Access to Capital

Cash Flow

Strong Commitment by Local Leadership


“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!


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


Things to Remember

• Describe your project and jobs created/retained

• Document need, costs and support of banks & businesses

• Debt – credit underwriting and terms


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]

mailto:[email protected]




Georgia Department of Community Affairs CDBG Economic Development

Documents

todays economic

use elberton

jones buildingpage

redevelopment incentives

department goal

opportunity zones

strategic focus

opportunity zone program