Presentation to Joint Committee on Economic Development and Emerging Technology 2 23 10

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A presentation my MassDevelopmnet's CEO Robert L. Culver to the Joint Committee on Economic Development and Emerging Technology.

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Presentation to Joint Committee on Economic Development and Emerging Technology 2 23 10

  1. 1. The Joint Committee on Economic Development and Emerging Technologies February 23, 2010
  2. 2. MassDevelopment <ul><li>Established by legislature in 1998 from merger of Massachusetts Industrial Finance Agency (MIFA) and Government Land Bank (GLB) </li></ul><ul><li>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 </li></ul><ul><li>Statutory merger implemented sound public policy of leveraging MIFA’s bond financing powers to also fund GLB’s economic development mission </li></ul>
  3. 3. Who We Are <ul><li>Statewide finance and development authority with an overarching mission of blight elimination and job creation. Specific powers include: </li></ul><ul><ul><li>Redevelopment of surplus state and federal property </li></ul></ul><ul><ul><li>Tax- exempt bond financing for non-profits, manufacturing and housing </li></ul></ul><ul><ul><li>Lender to businesses and non-profits for facility expansion, equipment, emerging technologies, environmental assessment and remediation </li></ul></ul><ul><ul><li>Lender to agricultural and seafood industries </li></ul></ul><ul><ul><li>Technical and real estate assistance to municipalities </li></ul></ul><ul><li>173 employees in statewide offices (includes 51 employees providing municipal services at Devens) </li></ul>
  4. 4. Who We Are <ul><li>During FY2009, MassDevelopment financed or managed 229 projects representing an investment of nearly $1.2 billion in the Massachusetts economy </li></ul><ul><li>These projects are supporting creation of: </li></ul><ul><ul><li>8,232 jobs (3,362 permanent and 4,870 construction-related) </li></ul></ul><ul><ul><li>1,488 new housing units </li></ul></ul>
  5. 5. Where We Are <ul><li>Boston </li></ul><ul><li>Devens </li></ul><ul><li>Fall River </li></ul><ul><li>Lawrence </li></ul><ul><li>Springfield </li></ul><ul><li>Worcester </li></ul>
  6. 6. Impact of SB 2270 <ul><li>Eliminates some MassDevelopment non-profit bond financing powers for: </li></ul><ul><ul><li>Cultural institutions </li></ul></ul><ul><ul><li>Secondary schools </li></ul></ul><ul><ul><li>Primary schools </li></ul></ul><ul><ul><li>Higher education </li></ul></ul><ul><ul><li>Human service providers </li></ul></ul><ul><li>Loss of up to $2.3 million in recurring annual revenue that supports MDFA lending, development, and municipal services </li></ul>
  7. 7. MassDevelopment Supports Non-Profits <ul><li>Financing programs for nonprofits: </li></ul><ul><ul><li>Tax-exempt bonds </li></ul></ul><ul><ul><li>Real estate loans </li></ul></ul><ul><ul><li>Techdollars (technology upgrades) </li></ul></ul><ul><ul><li>Charter school loan guarantees </li></ul></ul><ul><ul><li>Community Service 501(c)3 loan fund </li></ul></ul><ul><ul><li>New Markets Tax Credits </li></ul></ul><ul><ul><li>Cultural Facilities Fund </li></ul></ul><ul><ul><li>Predevelopment loans </li></ul></ul>
  8. 8. MassDevelopment Non-Profit Bond Financing FY 2007- FY 2009 <ul><li>180 issuances </li></ul><ul><li>$4,550,257,717 in aggregate principal </li></ul><ul><li>$8,716,267 in fees to MassDevelopment’s General Fund </li></ul><ul><li>2,921 jobs created </li></ul>
  9. 9. MassDevelopment General Fund and Restricted Loan Funds FY07-FY09 <ul><li>183 loans/guarantees </li></ul><ul><li>$120,388,255 in aggregate principal </li></ul><ul><li>3,640 new jobs created </li></ul><ul><li>5,483 jobs retained </li></ul>
  10. 10. MassDevelopment General Fund Loans / Guarantees FY2007-FY2009 <ul><li>85 loans/guarantees </li></ul><ul><li>$54,432,791 in aggregate principal </li></ul><ul><li>1,528 new jobs created </li></ul><ul><li>3,044 jobs retained </li></ul>
  11. 11. MassDevelopment Non-Profit Lending FY2007-FY2009 <ul><li>48 loans/guarantees </li></ul><ul><li>$32,421,812 in aggregate principal </li></ul><ul><li>178 new jobs created </li></ul><ul><li>2,398 jobs retained </li></ul><ul><li>$45MM New Markets Tax Credits for non-profits </li></ul>
  12. 12. MassDevelopment Small Business Lending FY2007-FY2009 <ul><li>135 loans/guarantees </li></ul><ul><li>$87,966,443 in aggregate principal </li></ul><ul><li>3,462 new jobs created </li></ul><ul><li>3,085 jobs retained </li></ul>
  13. 13. MassDevelopment Integrated Economic Development Program <ul><li>Surplus / Blighted Property </li></ul><ul><ul><li>Kerr Mill / ATMC, Fall River </li></ul></ul><ul><ul><li>100 Cambridge Street, Boston </li></ul></ul><ul><ul><li>Northampton State Hospital, Northampton </li></ul></ul><ul><ul><li>Former Fort Devens, Harvard, Ayer and Shirley </li></ul></ul><ul><ul><li>GSA Court House, Springfield </li></ul></ul><ul><li>Planning / Development </li></ul><ul><ul><li>Chapter 43D Services </li></ul></ul><ul><ul><li>Cities and Towns Initiative / Predevelopment Services / Municipal Consulting Services </li></ul></ul>
  14. 14. MDFA’s Integrated Economic Development Program Surplus/Blighted Properties Planning/Development Business support/ Investment Barrier Elimination
  15. 15. Integrated Approach in Fall River Surplus/Blighted Properties Planning/Development Business Support/ Investment Barrier Elimination - Land Assembly - Demolition - Road - Utilities - Building Construction - Planning - Asset Management - Loans - Bonds - Marketing/Sales <ul><li>Remediation </li></ul><ul><li>Permitting </li></ul>Kerr Mill, Fall River
  16. 16. Kerr Mill -> South Coast Research and Technology Park <ul><li>Current Status </li></ul><ul><ul><li>151 Martine St. fully occupied </li></ul></ul><ul><ul><ul><li>UMass anchor tenant </li></ul></ul></ul><ul><ul><ul><li>Celldex Therapeutics </li></ul></ul></ul><ul><ul><li>Meditech facility occupied </li></ul></ul><ul><ul><li>More than 500 jobs </li></ul></ul><ul><li>MassDevelopment investment: $13.5M </li></ul>
  17. 17. 1550 Main Street, Springfield <ul><li>Former federal courthouse that could have gone dark </li></ul><ul><li>Worked with City, State, Baystate, and federal government to structure deal </li></ul><ul><li>Will be fully tenanted with public/private mix </li></ul><ul><li>MassDevelopment investing $6M </li></ul>
  18. 18. 100 Cambridge Street <ul><li>Abandoned sick building </li></ul><ul><li>Gutted, renovated, and now wrapped with housing/retail </li></ul><ul><li>Complex bond financing on a ground lease </li></ul><ul><li>½ private leases </li></ul><ul><li>State gets office space, ground + contingent rent </li></ul><ul><li>MassDevelopment investment: $22M </li></ul>
  19. 19. Village Hill Northampton <ul><li>Redevelopment of State Hospital site into housing and commercial spaces </li></ul><ul><li>$29 million+ project </li></ul><ul><li>MassDevelopment investment: $6.2M </li></ul>
  20. 20. Devens <ul><li>Redevelopment of former army base through: </li></ul><ul><ul><li>Cleanup and new infrastructure </li></ul></ul><ul><ul><li>New businesses </li></ul></ul><ul><ul><li>Housing </li></ul></ul><ul><ul><li>MassDevelopment direct investment of $10M for Evergreen Solar </li></ul></ul>
  21. 21. Chapter 43D <ul><li>Met with 94 communities </li></ul><ul><ul><li>Provided technical assistance to 42 communities </li></ul></ul><ul><ul><li>Provided predevelopment/municipal consulting services to 15 communities </li></ul></ul><ul><ul><li>Funding 14 communities c. 43D grants </li></ul></ul><ul><li>Committed $3M in FY09 and $850,000 in FY10 to cover 43D costs at EOHED </li></ul>
  22. 22. Federal and State Grants Awarded to MassDevelopment or Partner Communities Since 2007 <ul><li>$6,280,740 federal funds with 1,300 new jobs created </li></ul><ul><li>$23,659,885 in state funds with 2,001 new jobs created </li></ul><ul><li>Representative projects/communities: Otis/MMR, Devens, Lawrence, Springfield, Lee, Gloucester, Athol </li></ul>
  23. 23. MassDevelopment Contributions at Request of Governor or Legislature <ul><li>$2M Greenway </li></ul><ul><li>$3.85M Chapter 43D FY08-09 </li></ul><ul><li>$2M Office of Small Business and Entrepreneurship FY09-10 </li></ul><ul><li>$500,000 Regional Planning Grants FY09 </li></ul><ul><li>$5M new non-profit loan fund </li></ul><ul><li>$1M to WMEF and SEED </li></ul><ul><li>$3M Cultural Facilities (FY11 H2) </li></ul><ul><li>$700,000 Office of Small Business (FY11 H2) </li></ul><ul><li>$335,000 43D/EOHED (FY11 H2) </li></ul>
  24. 24. <ul><li>800-445-8030 </li></ul><ul><li>www.massdevelopment.com </li></ul><ul><li>twitter.com/MassDev </li></ul>

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