CDFA 2008 Practitioner’s Showcase May 6, 2009 National New Markets Fund LLC Second Line Stages
National New Markets Fund LLC Economic Innovation International Belden Hull Daniels, President and CEO Strategic Developme...
New Orleans, LA August 29, 2005 Hurricane Katrina <ul><ul><ul><ul><li>1800+ Deaths </li></ul></ul></ul></ul><ul><ul><ul><u...
Diversifying  New Orleans’ Major Industries Big Issue : More Industries  With More Jobs
New Orleans Tourism Was Job Generating <ul><ul><ul><li>Tourism was 35% of the City’s Annual Operating Budget </li></ul></u...
New Orleans Motion Picture Industry Helps Fill the Gap <ul><ul><ul><li>From ‘01 and ‘07 New Orleans Motion Picture Industr...
Louisiana Film Production <ul><ul><ul><ul><li>Since 2002: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$2 Billion in P...
<ul><ul><ul><li>Supports the Rapid Growth of Louisiana’s Indigenous Motion Picture Industry  </li></ul></ul></ul><ul><ul><...
<ul><li>Big Construction Impacts </li></ul><ul><li>200 Direct Jobs, 22 Indirect Jobs </li></ul><ul><li>$2 Million Federal ...
<ul><ul><ul><li>35 Filmed Productions </li></ul></ul></ul><ul><ul><ul><li>2,635 Direct Jobs </li></ul></ul></ul><ul><ul><u...
Big Opportunity : Lots of Training Lots of Jobs <ul><li>Second Line Stages Partners with Kingsley House to Create:   </li>...
<ul><li>Concrete Slabs Have Very High Fly Ash </li></ul><ul><li>Recycled Steel </li></ul><ul><li>Locally Purchased Materia...
<ul><li>Computer Automated Systems to Optimize Operations </li></ul><ul><li>High-Efficiency Air-Cooled Chillers </li></ul>...
Second Line Stages  – Closing Financing $41 Million Total  Funding to the Project $  4.7 M  Senior Loan to Project $  5.1 ...
Second Line Stages  – Total Gross Financing $57.2 Million Total Gross Financing Over Project Life $  10.2 M <ul><ul><li>Le...
Second Line Stages: A Very Complicated Transaction Non-Member Manager Investment Fund SLS Lender LLC National Bank 1 Natio...
Second Line Stages: A Winner at Every Level <ul><li>A Devastating Tragedy Creates Enormous Needs </li></ul><ul><li>Buildin...
Upcoming SlideShare
Loading in …5
×

CDFA - Best Tax Credit Financed Project

546 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
546
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • CDFA - Best Tax Credit Financed Project

    1. 1. CDFA 2008 Practitioner’s Showcase May 6, 2009 National New Markets Fund LLC Second Line Stages
    2. 2. National New Markets Fund LLC Economic Innovation International Belden Hull Daniels, President and CEO Strategic Development Solutions Deborah J. La Franchi, President and CEO <ul><ul><li>Partners in New Market Tax Credits </li></ul></ul><ul><li>Economic Innovation: Founded by Belden Hull Daniels in 1970 </li></ul><ul><ul><li>$150B Privately Capitalized Funds Built Since 1970 </li></ul></ul><ul><ul><li>CDFA Pioneers: Economic Innovation helped build more than a dozen in: AK, AR, CO, CT, FL, KS, MA, ME, NE, VA, WA, and WY </li></ul></ul><ul><ul><li>Harvard and MIT: Taught Development Finance at both for many years </li></ul></ul><ul><li>Strategic Development Solutions Founded by Deborah La Franchi in 2001 </li></ul><ul><ul><ul><li>15-Person Economic Development and Fund Building Firm </li></ul></ul></ul><ul><ul><ul><li>Genesis LA: First CEO: 6 Funds capitalized at $.5B doing $1.5B deals </li></ul></ul></ul><ul><ul><ul><li>Former Assistant Deputy Mayor for Economic Development </li></ul></ul></ul><ul><ul><ul><li>(Los Angeles/Mayor Riordan) </li></ul></ul></ul>
    3. 3. New Orleans, LA August 29, 2005 Hurricane Katrina <ul><ul><ul><ul><li>1800+ Deaths </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$90 Billion in Property Damage </li></ul></ul></ul></ul><ul><ul><ul><ul><li>30 Oil Refineries Damaged; 9 Never Reopened </li></ul></ul></ul></ul><ul><ul><ul><ul><li>More than 1 Million Housing Units Flooded </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Unemployment Doubled in One Month from 6% to 12% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>25% Poverty Rate Before “The Great Recession” </li></ul></ul></ul></ul>The Costliest Hurricane Ever One Of The Five Deadliest Ever
    4. 4. Diversifying New Orleans’ Major Industries Big Issue : More Industries With More Jobs
    5. 5. New Orleans Tourism Was Job Generating <ul><ul><ul><li>Tourism was 35% of the City’s Annual Operating Budget </li></ul></ul></ul><ul><ul><ul><li>Since Katrina, New Orleans Lost $1B+ per year in Tourism $ </li></ul></ul></ul><ul><ul><ul><li>Post Katrina Tourists Cut By 2/3rds </li></ul></ul></ul><ul><ul><ul><ul><li>Was More than 10 million per year </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cut to About 3 million per year </li></ul></ul></ul></ul><ul><ul><ul><li>Thus, Economic Diversification is Critical </li></ul></ul></ul><ul><ul><ul><li>And, High Value-Added Jobs are Even More Critical </li></ul></ul></ul>Big Issue : Tourism Collapse
    6. 6. New Orleans Motion Picture Industry Helps Fill the Gap <ul><ul><ul><li>From ‘01 and ‘07 New Orleans Motion Picture Industry: </li></ul></ul></ul><ul><ul><ul><ul><li>Grew 22% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Each Year Wages Increased More than 8% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Louisiana Became One of Top Production States </li></ul></ul></ul></ul><ul><ul><ul><ul><li>And Production Facilities Create High Value-Added Jobs </li></ul></ul></ul></ul><ul><li>Big Growth : </li></ul><ul><li>The Film Industry Creates: </li></ul><ul><li>New Jobs </li></ul><ul><li>New Income </li></ul><ul><li>New Taxes </li></ul>
    7. 7. Louisiana Film Production <ul><ul><ul><ul><li>Since 2002: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$2 Billion in Productions Have Been Filmed in Louisiana </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>$1.5 Billion Total Direct Impact to Louisiana’s Economy </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Each Year Film Jobs Increased by 33% </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Film Production Budgets Spent in Louisiana Have Risen from 33% in 2005 to 87% for 2007   </li></ul></ul></ul></ul></ul>Big Deal : Big Diversification
    8. 8. <ul><ul><ul><li>Supports the Rapid Growth of Louisiana’s Indigenous Motion Picture Industry </li></ul></ul></ul><ul><ul><ul><li>Serves the Specific Demand for More Streamlined Production </li></ul></ul></ul><ul><ul><ul><li>Assumes a National Leadership Position in a Cleaner, More Environmentally Friendly Film Industry </li></ul></ul></ul><ul><ul><ul><li>Stimulates Long-Term Economic Growth in New Orleans and Louisiana </li></ul></ul></ul><ul><ul><ul><li>Creates Training, Jobs, Income, Wealth, and Taxes </li></ul></ul></ul>Why a Production Studio in New Orleans?
    9. 9. <ul><li>Big Construction Impacts </li></ul><ul><li>200 Direct Jobs, 22 Indirect Jobs </li></ul><ul><li>$2 Million Federal Tax Revenues </li></ul><ul><li>$.75 Million State Tax Revenues </li></ul>Big Impacts : Construction Second Line Stages: A Sow’s Ear Into a Silk Purse
    10. 10. <ul><ul><ul><li>35 Filmed Productions </li></ul></ul></ul><ul><ul><ul><li>2,635 Direct Jobs </li></ul></ul></ul><ul><ul><ul><li>2,597 Indirect Jobs </li></ul></ul></ul><ul><ul><ul><li>$20 Million Federal Taxes* </li></ul></ul></ul><ul><ul><ul><li>$12 Million State and Local Taxes* </li></ul></ul></ul>Big Operation Impacts Over 7-Year NMTC Life Big Impacts : Operations * Figures do not take into account the 40% State Film Infrastructure Tax Credit or the 25% State Tax Credit for Productions over $300,000. Second Line Stages: A Sow’s Ear Into a Silk Purse
    11. 11. Big Opportunity : Lots of Training Lots of Jobs <ul><li>Second Line Stages Partners with Kingsley House to Create: </li></ul><ul><li>Apprenticeship Training for At-Risk-Youth </li></ul><ul><li>Green Collar Training for At-Risk-Youth </li></ul><ul><li>Neighborhood Security Training </li></ul><ul><li>Outcome: Skilled Employment Opportunity for Residents </li></ul><ul><li>Creative Arts Workshops with Visiting Artists and Professionals Studio </li></ul>Second Line Stages: A Sow’s Ear Into a Silk Purse
    12. 12. <ul><li>Concrete Slabs Have Very High Fly Ash </li></ul><ul><li>Recycled Steel </li></ul><ul><li>Locally Purchased Materials </li></ul><ul><li>Waste Recycled from Landfills to Green Projects </li></ul><ul><li>Reflective Roofs Save Energy </li></ul><ul><li>Going for LEED Silver Certification </li></ul>Big Deal : Sustainable Construction Second Line Stages: A Sow’s Ear Into a Silk Purse
    13. 13. <ul><li>Computer Automated Systems to Optimize Operations </li></ul><ul><li>High-Efficiency Air-Cooled Chillers </li></ul><ul><li>Variable Air Volume HVAC Systems </li></ul><ul><li>Premium Efficiency Motors </li></ul><ul><li>Variable Speed Drives on All Motors </li></ul><ul><li>Compact Fluorescent and High Output T5 Lighting with Electronic Ballasts </li></ul><ul><li>Going for LEED Silver Certification </li></ul>Big Deal : Sustainable Operation Second Line Stages: A Sow’s Ear Into a Silk Purse
    14. 14. Second Line Stages – Closing Financing $41 Million Total Funding to the Project $ 4.7 M Senior Loan to Project $ 5.1 M Master Tenant Loan A - Blend of NMTC Equity, Federal Historic Tax Credit Equity and Debt $ 1.7 M CDE Loan B - NMTC Equity $ 4.1 M Fund Loan A - NMTC Equity, Loan, and Developer Equity $ 0.7 M Fund Loan B - NMTC Equity, Loan, and Developer Equity $ 5.8 M NNMF CDE Loan - Blend of NMTC Equity, Federal Historic Equity, Developer Equity, and Debt $ 3.0 M CDE Equity - Blend of Sources $ 3.0 M Master Tenant Equity - NMTC Equity and HTC Equity $ 8.8 M SLS Developer Equity $ 3.0 M State Historic Tax Credit Equity – Direct to Project $ 1.0 M Book up/Contributed Property $ 0.1 M Interest Income on Loan $ 41.0 M  
    15. 15. Second Line Stages – Total Gross Financing $57.2 Million Total Gross Financing Over Project Life $ 10.2 M <ul><ul><li>Leveraged Loan - to SLS Lender </li></ul></ul>$ 8.5 M <ul><ul><li>SLS Equity contributed to SLS Lender </li></ul></ul>$ 6.9 M <ul><ul><li>$24MM in NMTC Allocation between 3 CDES </li></ul></ul>$ 4.7 M <ul><ul><li>Federal Historic Tax Credit Purchase </li></ul></ul>$ 4.7 M <ul><ul><li>Senior Loan - direct to project </li></ul></ul>$ 9.8 M <ul><ul><li>Developer Equity contributed over the life of project </li></ul></ul>$ 2.9 M <ul><ul><li>State Historic Tax Credit Equity Paid over time </li></ul></ul>$ 9.5 M <ul><ul><li>Infrastructure Tax Credit Equity </li></ul></ul>$ 57.2 M  
    16. 16. Second Line Stages: A Very Complicated Transaction Non-Member Manager Investment Fund SLS Lender LLC National Bank 1 National Bank CDC NNMF CDE 2 CDE 3 CDE 1 Master Tenant LLC Developer SLS LLC Second Line Stages National Bank 1 State Historic Tax Credit LLC CREDITS EQUITY DEBT SERVICE DEBT SERVICE DEBT SERVICE DEBT SERVICE LEASE PAYMENTS DEBT SERVICE, PRIORITY RETURN AND HTC CAPITAL CONTRIBUTION/ BOOK UP DEBT SERVICE, PRIORITY RETURN CREDITS QEI QEI QEI DEBT SERVICE AND PRIORITY RETURN
    17. 17. Second Line Stages: A Winner at Every Level <ul><li>A Devastating Tragedy Creates Enormous Needs </li></ul><ul><li>Building a Sound Stage Helps Anchor a New Industry </li></ul><ul><li>Training LMI Residents Creates New Job Opportunities: </li></ul><ul><ul><li>2,835 Direct, Often High Value Jobs </li></ul></ul><ul><ul><li>2,619 Indirect Jobs </li></ul></ul><ul><li>More Income, Wealth and Tax Base in the Community: </li></ul><ul><ul><li>$22 Million in Federal Taxes Over 7 Years </li></ul></ul><ul><ul><li>$13 Million in State and Local Over 7 Years </li></ul></ul><ul><li>Constructing and Operating Green: </li></ul><ul><ul><li>Creates a National Model for Film Production </li></ul></ul><ul><ul><li>Creates a Local Model for Green Development </li></ul></ul>

    ×