Cra group 1 powerpoint 1
- 1. CITY OF LA: POST REDEVELOPMENT USC SOL PRICE SCHOOL OF PUBLIC POLICY PPD 619: SMART GROWTH & URBAN SPRAWL GROUP 1 JOY-ALONICA BAUTISTA JEFF KHAU MARISOL MACIEL THOMAS WONG
- 2. RESEARCH OUTLINE q Background Context q Meeting w/ City of LA’s Planning Department q Case Study of California Cities q City of Alhambra Source: http://la.curbed.com/tags/budget q Best Practices of Economic Development q Chicago, Ilinois q Phoenix, Arizona q New York, New York
- 3. BACKGROUND CONTEXT q California Redevelopment Agencies died on February 1, 2012. q Land-use conflicts and much more… q Successor agencies q What is LA doing to spur economic development?
- 4. RECOMMDENDATION #1 CITY OF ALHAMBRA
- 5. Potential Tools for Financing Economic Development long-‐term l oans secured by some form of collateral and revenues generated from a project or paid Section 108 loans from a portion of the city’s annual CDBG allocation ideal for i nfill development projects and tenant i mprovements under the category of job creation or Annual CDBG allocation elimination of blight CDBG Program Income net proceeds from any project made possible through the use of CDBG funds New project-generated sales new net sales taxes from a development that can be rebated to offset project costs tax rebates New project-generated new net property taxes from a development that can be rebated to offset project costs property tax rebates Short term lines of credit secured and repaid by new net project generated property or sales taxes Federal/State Grants or increases access to capital for small businesses–a key component of job creation, and helps provide Economic Development additional security for a Section 108 l oan Initiatives
- 6. ADDITIONAL FINANCING TOOLS Loans from General Fund or may require a l oan agreement as well as an i nterest component to do some types of projects Enterprise Reserve Funds Sale of city assets set aside f unds f rom sale of city assets City fees that are discounted, negotiated i ncentives to make i t e asier to attract new businesses and i nvestments waived or deferred assistance to assess and remediate abandoned or underused i ndustrial and commercial property Brownfields assistance (possible f unding available via the EPA or Federal/State agencies) bonds through IFDs can be used to help pay f or i nfrastructure-‐type projects by diverting property tax Infrastructure Financing revenues to pay debt service f rom other l ocal governments, e xcept schools ( requires two-‐thirds Districts (IFDs) voter approval) bonds backed by revenue generated f rom a project f unded with bond proceeds and repaid by Revenue bonds earnings f rom the operations of a revenue producing e nterprise tax-‐exempt bonds i ssued by chartered cities f or e conomic development or multi-‐family housing. The Conduit revenue bonds bond i s payable f rom l oan payments received f rom the non-‐governmental developer on the condition of a public benefit, and presents no l iability f or the governmental e ntity bonds used mainly to f inance public works i mprovements and services or to pay f or specific, l imited Community Facilities Districts improvements related to privately-‐owned or real property ( requires two-‐thirds voter approval to establish the parcel tax, i .e., Mello-‐Roos) a charge assessed against real property whereby there i s a benefit f rom a particular public works or Assessment Districts public services project or activity undertaken by the city. The special weighted voter-‐approved assessment becomes a part of the f unding mechanism to defray the cost of the project
- 7. RECOMMENDATION #2 NYCEDC q Commercial Tax Incentives q Empower Zone Benefits q Commercial Revitalization Program Source: http://www.nycedc.com
- 8. RECOMMENDATION #2 New York State EDC Example of IDA Benefits Project "X" builds 50,000 sq. ft. building for $5,000,000, and has q Brownfield Cleanup $4,000,000 mortgage. Program (BCP) Tax Mortgage recording tax savings (1% Credits of mortgage) = $40,000 Real Property Tax abatement = $275,000 over 10 years q Industrial Development Sales tax savings on construction materials and non-manufacturing Agency Program equipment = $120,000 + $54,000 = q Abatement of sales tax $174,000 Total savings over 10 years = $489,000 Source: http://www.nysedc.org/
- 9. RECOMMENDATION #3 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) Chicago Skyline Source: http://www.prlog.org § Oversight body created to review expenses; unpaid positions
- 10. Chicago Model HED Structure Source: http://www.cityofchicago.org/content/city/en/depts/dcd/auto_generated/dcd_our_structure.html
- 11. RECOMMENDATION #4 q Streamlined process q Simplified way to get involved with development q Department that knows about the start-up process Source: http://phoenix.gov q Desire to have a relationship with business owners
- 12. CONCLUSION q Pass Limited Transition Ordinance q Institute economic development plan using alternative financing tools q Capitalize on incentives and provide a customer advocacy program q Streamline planning & development processes