Curious to Competent - Advocating For Economic Change 101

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Advocating For Economic Change 101
From to
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F.A. Johnson, II, Esq. is a second generation managing member of the F.A.
Johnson Development Group. He has twenty-five years experience in the
planning, financing, construction and management of large-scale
commercial, economic development, & community development projects.
A graduate of Emory University School of Law, He has firsthand
experience handling land acquisition, relocation, demolition,
rehabilitation, and new construction activities. He is the author, of Vision
To Fulfillment: The Non-Profit Developer’s Training Manual, a capacity
building guide for Public Private Partnerships. F.A. frequently speaks at the
national level on development related topics for organizations such as the
International Council of Shopping Centers (ICSC), National League of
Cities (NLC), and Auburn University Economic & Community
Development Institute.
From to
Presented By:
Marilyn Drayton is Senior Vice President and Community Development
Manager for Wells Fargo. She has responsibility for the Florida Region,
including over 640 Store locations and 5 regional markets. She manages the
company's community development strategic initiatives, and programmatic
activities impacting affordable housing, neighborhood stabilization/
revitalization, community lending and investments, and relationship
management with key community stakeholders. She is active in her
community and serves as a member of various professional boards and
industry committees including the Florida Housing Coalition, the Florida
Alliance of Community Development Corporations, Community Affordable
Housing Equity Corporation, and Women In Local Leadership (WILL) of the
North Florida United Way.
Advocating For Economic Change 101

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FA Johnson Consulting Group, Inc.
Harbison: Our Flagship Project
Over 40 years of working with Non-Profits,
Municipalities, and Private Developers
Neighborhood and Downtown Redevelopment
Commercial
Retail
Mixed Use
Residential (work force housing & market rate)
Single Family
Multi-Family (Market rate & tax Credit)
Institutional
Strength In working with Public/Private
Partnerships
Over 25 CDC’s organized and Managed over 13
CDC’s
From to
Advocating For Economic Change 101
FA Johnson Consulting Group, Inc.
Our Clients Include...

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P.A.S.T.O.R.S., INC.P.A.S.T.O.R.S., INC.
is a Public Private Partnership
between United Methodist, African
Methodist Episcopal, Presbyterian,
Reformed Episcopal, Baptist, and
other faith based leaders working in
concert with Neighborhood
Presidents, Financial Institutions, and
local units of government to create
meaningful and lasting change in the
community.
Our vision includes the opportunity
for individuals and families to
enhance their dignity by achieving
independence and productivity in
order to empower them to become
integrated contributing members of
their communities.
www.PastorsInc.com
OUR VISION:OUR VISION:
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Revitalization – Empowerment - Development
Economic Development And Community Advocacy
New Israel Reformed
Episcopal Church
76 Simons Street Renal Rehabilitation
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New Israel Reformed Episcopal Church
76 Simons Street Renal Rehabilitation
Revitalization – Empowerment - Development

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• Tell me and I forget.
• “Teach me and I remember.
• Involve me and I learn.”
- Benjamin Franklin
Action Plan Items
(Begin With End In Mind)
Florida Economic Development Initiative
Realtist Renewal Committee & Wells Fargo
Being A Change Agent
• Identify 2 Projects Per City
• In Conjunction With Wells Fargo Regional Contacts
• Capacity Building: Creating Capacity At Local Level
• Matching Members up With Experienced Project Managers
• Revenue Generation: NAREB Members Doing Business Together:
• 3-4 NAREB Members Involved In Each Project (i.e. fees/revenue) Goal
• Revenue (i.e. Fee For Service)
• Contribution To Local Board Chapter in the City of the Project
• Contribution To State Chapter
• Goal: At least 1 Project Per City Completed by 2nd Annual Summit
• Goal: “Shark Tank” Style Presentation of additional projects by2nd Annual
Summit
ü For A Copy of Handouts Text “NEEDTOKNOW” to 66866
Advocating For Economic Change
Basics For Community Developers
The Basics:
Stakeholder
Analysis Barrier Identification
The Implementation
Process (How To Make
Partnering Decisions)
Strengths/Weaknesses
Assessment
Action Steps
(Creating The Plan)
Capacity Building

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Catalyst Project(s) Identification
Identify Point(s) of Beginning
Forming the
Development
Concept
Mission, Vision,
Defining the Project
Feasibility Study
Testing The Market
Viability
Project Construction
Creating/Reviewing
Master Plan (if applicable) Planning &Financial
Pre-Construction/Pre-
Development
Operation &
Management
Facility
Management
First A Few Definitions
Non-Profits:
• IRS Status
• CDCs
• CHDOs /CBDOs
• CDBG, HOME,
HOPWA
• Market Rate Vs.
Subsidized
• Grant, Deferred
Forgivable Loan,
Loan
• Pre-Development Risks
& Range of Potential
Expenditures
• Price vs. Cost
What is Affordable
Housing?
• Area Median Income
• 25-30 % Household
Income
• HOME Income/Rent
Limits
Federal Strings:
• Procurement
• Monitoring
• Reporting
• Eligibility
Others??

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üWhat will be developed?
üHow it will be Developed?
üWhen it will be Developed?
üWho Will Control the Development?
What Do You Want To Accomplish?
The Armstrong Galleria Augusta, Georgia
Big Brothers Big Sisters Headquarters
Roanoke, Virginia
Preparing For Community Advocacy
ConsiderationsSetting The Stage For Development: Key Ingredients To A Successful
Economic Development Project
Ø Leadership: Capturing and Setting The Vision
Ø Partnership: Forge A Healthy Public/Private Partnership
Ø Empowerment: Community Support
How To Get Engaged
Ø Develop Relationships By Getting Active
Ø Attend Florida Conferences For CDCs
Ø Contact Neighbor works Affiliates (10)
Ø Florida Housing Coalition
Ø Others ??
Ø Do Your Homework
Ø Which Communities Have Unspent State or Federal Funds
Ø Take What You Hear Today and Apply It (Follow up)
Ø Where Are Your Partners Targeting Their Money?
Ø Understanding it’s a Competitive Process
Ø Political Priorities – Check Your Local Comprehensive Plan

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Preparing For Community Advocacy
Considerations
Issues To Consider When Undertaking Economic
Development Projects
Ø Understand Local Market Forces
Ø Develop An Implementation Plan (Strategic Plan)
Ø The Value of A Public Private Partnership
Ø Understanding The Development Process
Ø The Financing Package (Business Plan)
Ø Lessons Learned With Universal Application
PRE-DEVELOPMENT (PRE-CONSTRUCTION) DUE DILIGENCE
Process Components
Ø Capacity Building/Board & Community Training
Ø Neighborhood Grass Roots Organizing
Ø Determine Structure To Carry Out Redevelopment
Ø Developing the Vision
Ø Project Assessment & Analysis
Ø Master Planning
Ø Feasibility & Market Analysis
Ø Project Coordination
Ø AIA/Engineering Oversight:
Ø Civil, Mechanical, Structural, & Electrical
Ø Site & Traffic; Surveying, Soil borings/Environmental
Ø Creation of a Business Plan
Ø Land Acquisition and Infrastructure
Ø Management/Administration of Development
Ø Housing Marketing/Sale Program

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Lender Participants
Development Products
Non-Profit Corporation “CDC”
Management/Development
Consultant
FA Johnson Consulting
Group, Inc.
Legal Cost Estimates Engineering
Special Purpose
Development LLC Feasibility & Planning Design
Financing
Lenders
Economics
Architect
General
Contractor
ContractorContractor
Construction Management
Sales/Marketing
Program
Elected Officials
Constituency
NON-PROFIT COMMUNITY DEVELOPMENT CORPORATION
Suggested Organizational Structure
Preparing the Action Plan
Project Planning:
•Development of an Action Plan/
Predevelopment Activity
•Outline Criteria
Project Launching
•Preparation of Design & Construction
Contract Provisions
•Develop a Master Schedule
•Total Project Budgeting
Design Phase Management
•Request for Proposal (RFP) Preparation
•Selecting & contracting with a design
consultant

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Pre-Development (Pre-Construction)
“Take a Drive of the Dirt”
Our Definition of Development:
Development is how you
get the bricks & mortar
financed.
Commercial Development Projects
Norfolk, Virginia
Financing Your Initial Project

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Financing Your Initial Project
The project may need some enhancement (to look more
conventional):
Ø Strengthen Collateral: Guarantees (USDA/HUD) and Loan
Subordinations
Ø Reduce Expenses: Grants for Equity, Interest Rate Subsidies
Ø Provide Management Assistance: Technical Assistance
Ø Shift Transaction Costs/Risks: Partnering to have a Track Record
Ø Increase Revenue
Common Financing Issues:
Construction Financing
Bridge Financing
Direct Project Equity
Loan Participation
Permanent Financing
Proceeds Needed For:
Pre-Development
Land Acquisition
Construction Soft Costs
Alternative Financing Options:
Acquisition/Rehab Augusta, Georgia
Financing Your Initial Project
Federal Home Loan Bank Non-Traditional Lenders
USDA Rural Development (Various) NTMC/Bond Financing
State Housing Finance Authority Other…

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Financing Your Initial Project
Lincoln Terrace Roanoke, Virginia
Duplex
Mixed-Income Rental
Single Family
Single Family
Rental, Homeownership, & Lease- Purchase
Financing Your Initial Project:
Representative Examples
Scattered Site Single Family Housing
Queens Court
In-Fill
1200 Melrose Avenue

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Implementing the Plan
Schedule Management:
•Review Detailed Construction Schedules
•Review Requirements for Bid Packages
Bid/Award Management
•Preparation of final bid packages
•Stimulate Bidder interest
•Conduct Pre-Bid Conference
•Evaluate Bids & Make Recommendations
•Prepare & award Contract
Implementing the Plan
Construction Management:
•Percent Complete Reporting
•Progress Reports
•Change Orders Control & Processing
•Inspections
Financial Management
•Status Reports on Payments
•Change Order Accounting & Budget
Impact Analysis
•Cash Flow Projections
General Consulting
•Consulting on non-specific tasks as
requested

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Development Management
The management of construction
programs or projects, beyond that
provided by traditional architectural,
engineering or construction management
contracts, from inception to completion.
Operational Strategic Assessment
Board Training:
The Basics (Stakeholder Analysis)
Strengths/Weaknesses Assessment
Barrier Identification
Action Steps(Creating The Plan)
Including Capacity Building
The Implementation Process (How To Make Partnering
Decisions)

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Operational Strategic Assessment
This page contains a picture that can be switched out for another graphic by
right Responding to these questions will help formulate the
Initial Action Plan Format Work Tasks:
Where are you going? (Mission)
How do you get there? (Strategies)
What is your blueprint for action? (Budget)
How do you know if you are on track? (Task(s))
Who are the key stakeholders? (Politics)
tly on the image and clicking “change picture.” Replace your text here to give
a description.
Operational Strategic Assessment
Work program generally includes five (5) major (tasks) areas:
1. Establish Separate Non-Profit Entity (part of Strategic Assessment)
2. Capacity Building Board Training
3. Strategic Plan Implementation (Identify Catalyst Projects); This
would include a Review/Modify Master Plan to Identify a Point(s)
of Beginning
4. Socio-Demographic and Real Estate Market Analysis to support
Catalyst Projects
5. Packaging and Financing; This includes identifying and
recommending opportunities and potential options relative to
Financing and other grant related options

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• Tell me and I forget.
• “Teach me and I remember.
• Involve me and I learn.”
- Benjamin Franklin
Action Plan Items
Florida Economic Development Initiative
Realtist Renewal Committee & Wells Fargo
Being A Change Agent
• Identify 2 Projects Per City
• In Conjunction With Wells Fargo Regional Contacts
• Capacity Building: Creating Capacity At Local Level
• Matching Members up With Experienced Project Managers
• Revenue Generation: NAREB Members Doing Business Together:
• 3-4 NAREB Members Involved In Each Project (i.e. fees/revenue) Goal
• Revenue (i.e. Fee For Service)
• Contribution To Local Board Chapter in the City of the Project
• Contribution To State Chapter
• Goal: At least 1 Project Per City Completed by 2nd Annual Summit
• Goal: “Shark Tank” Style Presentation of additional projects by2nd Annual
Summit
ü For A Copy of Handouts Text “NEEDTOKNOW” to 66866
www.FAJohnsonDevelopmentGroup.com
FAJohnson@FAJohnsonDevelopmentGroup.com
1520 Senate Street, Suite 177
Columbia, SC 29201
30
Questions?
Feel free to contact us.