City of Seattle

Recovery of the Rainier Valley

NCDA June 2007

Rainier Valley

• 60% low / moderate income households

• 40% foreign-born

• 82% non-Caucasian

• 15% of students passed W.A.S.L.

Seattle CDBG

$35 M

Seattle GF

$7.8 M

King County & Sound Transit

$7.2 M

Rainier Valley Community

Development Fund

• CBDO

• Mitigate Construction Disruption

• Invest for Development

Office of Economic Development

RVCDF Products

• Supplemental Mitigation

– Business Interruption Payments• cover loss of revenue due to construction activity

– Business Re-establishment Payments• permanent relocation

RVCDF Products

• Business Incentives

– Business Expansion Loan• lower rates, longer amortization

– Interest Subsidy Grants• weak credit histories, limited collateral• ½ of interest on CDFI loan

RVCDF Products

• Real Estate Development

– Real Estate Financing• Gap financing• low rates, longer amortization• CDF participates in cash flow

– Site Assembly• ease carrying costs

Supplemental Mitigation(March 2007)

• 292 Total eligible businesses

• 159 received financial assistance

• 52 chose not to apply

• 38 moved / closed (no assistance)

• 2 applications in process

• $9.67 M approved

Supplemental Mitigation

• Chuy El Mexicano– Since 1999– Placed in storage for 2 years; relocated– Before relocation, 2002, $182,000 in gross

sales– $127,000 in relocation / re-establishment

costs (tenant improvements)– $70,000 business interruption payments– $50,000 loan assisted with interest subsidy

Supplemental Mitigation

• Express Tires– Five employees– Gross revenues $800,000 down to $500,000– Construction of large retaining wall cut access

down to one driveway (out of three) for a two-year period

– $53,000 in business interruption payments

Development Financing

• $1.2M site assembly loan completed– 75 apartments above 7,500 square feet of

retail, and 9 townhomes by 2009

• $2M development loan in process

Lessons Learned

• Partners need to understand CDBG regulations

Seattle CDBG

$35 M

Seattle GF

$7.8 M

King County & Sound Transit

$7.2 M

Rainier Valley Community

Development Fund

• CBDO

• Mitigate Construction Disruption

• Invest for Development

Office of Economic Development

Lessons Learned

• Partners need to understand CDBG regulations

• Concentrate NRSA resources into one area to make a big difference

Resources

• www.rvcdf.org

• www.soundtransit.org

• www.seattle.gov/humanservices

• www.seattle.gov/economicdevelopment

• michael.look@seattle.gov

• 206-615-1717