Cra group 1 powerpoint 1
-
Upload
smart-growth -
Category
Business
-
view
161 -
download
1
description
Transcript of Cra group 1 powerpoint 1
U S C S O L P R I C E S C H O O L O F P U B L I C P O L I C Y
P P D 6 1 9 : S M A R T G R O W T H & U R B A N S P R A W L
CITY OF LA: POST REDEVELOPMENT
G R O U P 1
J O Y - A L O N I C A B A U T I S T A
J E F F K H A U
M A R I S O L M A C I E L
T H O M A S W O N G
RESEARCH OUTLINE
Background Context
Meeting w/ City of LA’s Planning Department
Case Study of California Cities City of Alhambra
Best Practices of Economic Development Chicago, Ilinois
Phoenix, Arizona
New York, New York
BACKGROUND CONTEXT
California Redevelopment Agencies died on
February 1, 2012.
Land-use conflicts and much more…
Successor agencies
What is LA doing to spur economic development?
RECOMMDENDATION #1 CITY OF ALHAMBRA
Section 108 loanslong-term loans secured by some form of collateral and revenues generated from a project or paid
from a portion of the city’s annual CDBG allocation
Annual CDBG allocationideal for infill development projects and tenant improvements under the category of job creation or
elimination of blight
CDBG Program Income net proceeds from any project made possible through the use of CDBG funds
New project-generated sales
tax rebatesnew net sales taxes from a development that can be rebated to offset project costs
New project-generated
property tax rebatesnew net property taxes from a development that can be rebated to offset project costs
Short term lines of credit secured and repaid by new net project generated property or sales taxes
Federal/State Grants or
Economic Development
Initiatives
increases access to capital for small businesses–a key component of job creation, and helps provide
additional security for a Section 108 loan
Potential Tools for Financing Economic Development
ADDITIONAL FINANCING TOOLS
Loans from General Fund or
Enterprise Reserve Fundsmay require a loan agreement as well as an interest component to do some types of projects
Sale of city assets set aside funds from sale of city assets
City fees that are discounted,
waived or deferrednegotiated incentives to make it easier to attract new businesses and investments
Brownfields assistanceassistance to assess and remediate abandoned or underused industrial and commercial property
(possible funding available via the EPA or Federal/State agencies)
Infrastructure Financing
Districts (IFDs)
bonds through IFDs can be used to help pay for infrastructure-type projects by diverting property tax
revenues to pay debt service from other local governments, except schools (requires two-thirds
voter approval)
Revenue bondsbonds backed by revenue generated from a project funded with bond proceeds and repaid by
earnings from the operations of a revenue producing enterprise
Conduit revenue bonds
tax-exempt bonds issued by chartered cities for economic development or multi-family housing. The
bond is payable from loan payments received from the non-governmental developer on the
condition of a public benefit, and presents no liability for the governmental entity
Community Facilities Districts
bonds used mainly to finance public works improvements and services or to pay for specific, limited
improvements related to privately-owned or real property (requires two-thirds voter approval to
establish the parcel tax, i.e., Mello-Roos)
Assessment Districts
a charge assessed against real property whereby there is a benefit from a particular public works or
public services project or activity undertaken by the city. The special weighted voter-approved
assessment becomes a part of the funding mechanism to defray the cost of the project
RECOMMENDATION #2
NYCEDC
Commercial Tax
Incentives
Empower Zone Benefits
Commercial
Revitalization Program
Source: http://www.nycedc.com
RECOMMENDATION #2
New York State EDC
Brownfield Cleanup
Program (BCP) Tax
Credits
Industrial Development
Agency Program
Abatement of sales tax
Example of IDA Benefits Project "X" builds 50,000 sq. ft.
building for $5,000,000, and has
$4,000,000 mortgage.
Mortgage recording tax savings (1%
of mortgage) = $40,000 Real Property Tax abatement =
$275,000 over 10 years Sales tax savings on construction
materials and non-manufacturing
equipment = $120,000 + $54,000 =
$174,000 Total savings over 10 years =
$489,000 Source: http://www.nysedc.org/
RECOMMENDATION #3
Chicago Skyline
Source: http://www.prlog.org/11842434-chicago-it-doesnt-get-any-better-than-
this.html
Restructuring: Chicago’s Model
Department of Housing and
Economic Development Comprised of Commissioner’s
Office and three bureaus Bureau of Housing Bureau of Economic Development Bureau of Planning and Zoning
Bureaus do the bulk of the work in
regards to execution of projects.
Commissioner’s Office assists in the
decision-making process Composed of private individuals
who attend meetings once a
month
Community Development
Commission (CDC) Oversight body created to review
expenses; unpaid positions
Ch
ica
go
Mo
de
l H
ED
Str
uctu
re
So
urc
e:
htt
p:/
/ww
w.c
ityofc
hic
ago.o
rg/c
onte
nt/
city/e
n/d
epts
/dcd/a
uto
_ge
nera
ted/d
cd
_o
ur_
str
uctu
re.h
tml
RECOMMENDATION #4
Streamlined process
Simplified way to get involved with development
Department that knows about the start-up process
Desire to have a relationship with business owners
CONCLUSION
Pass Limited Transition Ordinance
Institute economic development plan using
alternative financing tools
Capitalize on incentives and provide a customer
advocacy program
Streamline planning & development processes