The Joint Committee on Economic Development and

Emerging Technologies

February 23, 2010

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MassDevelopment

• Established by legislature in 1998 from merger of Massachusetts Industrial Finance Agency (MIFA) and Government Land Bank (GLB)

• MIFA had lending and bond financing powers (including to non-profits). GLB had lending and real estate development powers in furtherance of job creation and elimination of blight

• Statutory merger implemented sound public policy of leveraging MIFA’s bond financing powers to also fund GLB’s economic development mission

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Who We Are• Statewide finance and development authority with an

overarching mission of blight elimination and job creation. Specific powers include:– Redevelopment of surplus state and federal property

– Tax- exempt bond financing for non-profits, manufacturing and housing

– Lender to businesses and non-profits for facility expansion, equipment, emerging technologies, environmental assessment and remediation

– Lender to agricultural and seafood industries

– Technical and real estate assistance to municipalities

• 173 employees in statewide offices (includes 51 employees providing municipal services at Devens)

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Who We Are

• During FY2009, MassDevelopment financed or managed 229 projects representing an investment of nearly $1.2 billion in the Massachusetts economy

• These projects are supporting creation of:– 8,232 jobs (3,362 permanent and 4,870

construction-related) – 1,488 new housing units

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Where We Are

• Boston• Devens• Fall River• Lawrence• Springfield• Worcester

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Impact of SB 2270• Eliminates some MassDevelopment non-profit

bond financing powers for:– Cultural institutions– Secondary schools– Primary schools– Higher education– Human service providers

• Loss of up to $2.3 million in recurring annual revenue that supports MDFA lending, development, and municipal services

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MassDevelopment Supports Non-Profits

• Financing programs for nonprofits:– Tax-exempt bonds– Real estate loans– Techdollars (technology upgrades)– Charter school loan guarantees– Community Service 501(c)3 loan fund – New Markets Tax Credits– Cultural Facilities Fund– Predevelopment loans

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MassDevelopment Non-Profit Bond Financing FY 2007- FY 2009

• 180 issuances

• $4,550,257,717 in aggregate principal

• $8,716,267 in fees to MassDevelopment’s General Fund

• 2,921 jobs created

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MassDevelopment General Fund and Restricted Loan

Funds FY07-FY09

• 183 loans/guarantees

• $120,388,255 in aggregate principal

• 3,640 new jobs created

• 5,483 jobs retained

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MassDevelopment General Fund Loans / Guarantees FY2007-FY2009

• 85 loans/guarantees

• $54,432,791 in aggregate principal

• 1,528 new jobs created

• 3,044 jobs retained

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MassDevelopment Non-Profit Lending FY2007-FY2009

• 48 loans/guarantees

• $32,421,812 in aggregate principal

• 178 new jobs created

• 2,398 jobs retained

• $45MM New Markets Tax Credits for non-profits

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MassDevelopment Small Business Lending FY2007-FY2009

• 135 loans/guarantees

• $87,966,443 in aggregate principal

• 3,462 new jobs created

• 3,085 jobs retained

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MassDevelopment Integrated Economic Development Program

• Surplus / Blighted Property– Kerr Mill / ATMC, Fall River– 100 Cambridge Street, Boston– Northampton State Hospital, Northampton– Former Fort Devens, Harvard, Ayer and Shirley– GSA Court House, Springfield

• Planning / Development– Chapter 43D Services– Cities and Towns Initiative / Predevelopment Services /

Municipal Consulting Services

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MDFA’s Integrated EconomicDevelopment Program

Surplus/Blighted Properties

Planning/Development

Business support/ Investment

Barrier Elimination

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Integrated Approach in Fall River

Surplus/Blighted Properties

Planning/Development

Business Support/ Investment

Barrier EliminationKerr Mill, Fall River

- Land Assembly- Demolition

- Road- Utilities- Building Construction- Planning

- Asset Management - Loans- Bonds - Marketing/Sales

- Remediation- Permitting

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Kerr Mill -> South Coast Research and Technology Park

• Current Status– 151 Martine St. fully

occupied• UMass anchor tenant • Celldex Therapeutics

– Meditech facility occupied

– More than 500 jobs

• MassDevelopment investment: $13.5M

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1550 Main Street, Springfield

• Former federal courthouse that could have gone dark

• Worked with City, State, Baystate, and federal government to structure deal

• Will be fully tenanted with public/private mix

• MassDevelopment investing $6M

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100 Cambridge Street

• Abandoned sick building• Gutted, renovated, and

now wrapped with housing/retail

• Complex bond financing on a ground lease

• ½ private leases• State gets office space,

ground + contingent rent• MassDevelopment

investment: $22M

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Village Hill Northampton

• Redevelopment of State Hospital site into housing and commercial spaces

• $29 million+ project• MassDevelopment investment:

$6.2M

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Devens

• Redevelopment of former army base through:

– Cleanup and new infrastructure

– New businesses– Housing– MassDevelopment

direct investment of $10M for Evergreen Solar

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Chapter 43D

• Met with 94 communities– Provided technical assistance to 42 communities– Provided predevelopment/municipal consulting

services to 15 communities– Funding 14 communities c. 43D grants

• Committed $3M in FY09 and $850,000 in FY10 to cover 43D costs at EOHED

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Federal and State Grants Awarded to MassDevelopment or Partner

Communities Since 2007

• $6,280,740 federal funds with 1,300 new jobs created

• $23,659,885 in state funds with 2,001 new jobs created

• Representative projects/communities: Otis/MMR, Devens, Lawrence, Springfield, Lee, Gloucester, Athol

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MassDevelopment Contributions at Request of Governor or Legislature

• $2M Greenway• $3.85M Chapter 43D FY08-09• $2M Office of Small Business and

Entrepreneurship FY09-10• $500,000 Regional Planning Grants FY09• $5M new non-profit loan fund• $1M to WMEF and SEED• $3M Cultural Facilities (FY11 H2)• $700,000 Office of Small Business (FY11 H2)• $335,000 43D/EOHED (FY11 H2)

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800-445-8030

www.massdevelopment.com

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