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Alternative Funding Sources for Heritage Tourism

Presented by Bruce GreenGeorgia Department of Economic Development

August 21, 2006

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Finance Tools

Grants - State & Federal

Loans – State & Federal

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Financial Tools

Local FundsFunds derived from tax base

Special Tax District CBID $

CID $$TAD $$$

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Finance Tools

Indirect Financial Incentives

Enterprise Zone

Opportunity Zones

Land Bank Authority

501-C3 Charitable Org Investment Tax Credits

Deferred Property Tax

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Downtown Dalton – tax district

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City Business Improvement District

Advertising

Promotion

Sanitation

Security

Business Recruitment & Development

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The CID generally covers Peachtree Road from Shadowlawn to Peachtree Dunwoody; Piedmont Road from Peachtree to Habersham; and Lenox Road (Buckhead Loop) from Piedmont to East Paces Ferry.

The district "has applied for $17 million in federal and state funding to begin the Peachtree Corridor Project.

The Buckhead CID and the City of Atlanta will provide an additional $7.5 million in local funds."

Buckhead CID

Tax Allocation District

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Indirect Financial Incentives

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Enterprise Zones

Creates a local ad valorem tax abatement

incentive expressed over a 10 year period.

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Enterprise Zones

An area must meet three out of the four following criteria:

•Poverty, •Unemployment, •General distress; and •Underdevelopment

Must increase employment by five or more new full time jobs or create improvement 5x greater than value of land.

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Opportunity Zones

HB 984State's Job Tax Credit Program of "Opportunity Zone" tax credits. DCA to designate as a "less developed area" an area that is contained by two or more census block groups with 20% or greater poverty, within an enterprise zone and where an urban redevelopment plan exists. Opportunity Zones are intended to encourage development and redevelopment in smaller geographic areas than are served by existing economic development programs. State resources are directed towards these "pockets of poverty" in a way that can be supplemented by federal programs that DCA administers.

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HB984 -- Opportunity Zones 2 or more Census Blocks > 20% Poverty

Redevelopment AreaState Enterprise Zone

Eligible OZ

Model from Department of Community Affairs

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Land Bank Authority

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Historic Rehab Investment Tax Credits

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Economic Development

Cities and Towns can take charge of their owneconomic development destinies if they have: Political will;A plan and an implementation strategy;Effective community organization andCommunication;Appropriate tools and regulations;Financial resources; andCapable development partners.

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A plan and an implementation strategy

If the current plan is not working,

Then change it.

If there is no plan,

Then make one.

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Effective community organization and communication

Identification of the Vision

Dissemination of the Vision

Codification of the Vision

Execution of the Vision

Celebration of …

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Financial Resources

Capitalization of the Vision

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Sometimes the private sector can't or won't undertake development projects that the community deems important-even when development incentives are offered.

An innovative way to get these projects developed is to use community initiated development (CID).

Economic Development

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The effective reuse of a city’s historic built environment is a significant component of any strategy that claims to be "sustainable economic development."

Preservation Economics Principle

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… I would suggest to you that the safekeeping of a locality’s cultural assets, natural environment, and especially its historic built environment is critical to positioning a community to effectively compete on a sustainable basis in the 21st Century world economy.

Donovan Rypkema

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In market economies it is the differentiated product (community) that commands a monetary premium.

It seems to me that the heart of historic preservation is not having "the world covered by a sole Atlanta which does not begin and does not end."

Historic Preservation is a strategy that not only has aesthetic, cultural, and sociological merit. It is an effective economic development strategy as well.

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Contact Us

Bruce Green, Tourism Product Development ManagerGeorgia Department Of Economic Development75 5th Street, Suite 1200Atlanta, GA 30308Bgreen@georgia.org