ECONOMIC DEVELOPMENT (ë/ke nom/ik d vel/ep ment), n. is the net creation of new
                employment and the generat...
Mission and Goal

 • To provide capital and advisory services that foster
 positive community development impacts in distr...
Board of Directors
                                        Elizabeth “Libby” Williams (Chair)
                            ...
Who We Are
             • Created in 1980 by the City of Los Angeles
             • Certified by US Department of Treasury...
Drapes 4 Show, Inc.                                     Drapes 4 Show, Inc. is a full service manufacturer of table/stage
...
Westerly School of Long Beach Westerly School was founded in 1991 by a group
                  an independent K-8 school  ...
Los Angeles Arts Loan Fund                              The Los Angles Arts
        Affiliated with Center for Non Profit ...
Asian American Drug Abuse Program
                         a community based service organization

                       ...
Frederick and Laurie Smith’s
                                           Samitaur Constructs, Frederick and Laurie Smith’s ...
LOS ANGELES LDC, Inc., and SUBSIDIARIES
                                      CONSOLIDATED STATEMENT of FINANCIAL POSITION...
Los Angeles LDC, Inc. Annual Report PDF produced by Russ Nichols
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Los Angeles LDC, Inc. Annual Report PDF produced by Russ Nichols

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This is the Annual Report, which I produced for the Los Angeles LDC, Inc., a financial institution which provides loans under $10 million to underserved businesses and non-profit organizations in Greater Los Angeles. Michael Banner is the President and CEO of the LDC.

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Los Angeles LDC, Inc. Annual Report PDF produced by Russ Nichols

  1. 1. ECONOMIC DEVELOPMENT (ë/ke nom/ik d vel/ep ment), n. is the net creation of new employment and the generation of net new wealth and tax base within a local or regional economy. Edward J. Blakely Planning Local Economic Development Sage Publications, 1994 www.losangelesldc.com
  2. 2. Mission and Goal • To provide capital and advisory services that foster positive community development impacts in distressed neighborhoods by aligning the needs of our borrowers and investors. • To be the leading community development finance Michael Banner, President and CEO of Los Angeles solutions provider for the markets we serve. LDC, Inc., is responsible for the daily operations of the LDC. He has been active in the area of community development finance for the past fifteen (15) years. Prior to becoming active in community development, Michael Banner was a banking executive specializing in commercial lending with several major California banks. www.losangelesldc.com
  3. 3. Board of Directors Elizabeth “Libby” Williams (Chair) Consultant Community and Economic Development Steven M. Herman (Secretary) Joseph Stanley Sanders, Esq. Vice President & CRA Manager Senior Partner California Bank & Trust The Sanders Firm LLP Laurie Hand (CFO /Treasurer) Keith Settle VP/Senior Business Relationship Mgr. Real Estate Appraiser Wells Fargo CA Business Banking Keith Settle & Company Georgina Escamilla Myron P. Perryman Project Manager Vice President /Client Manager Southern CA Edison Community Development Bank Bank of America John C. Russell Senior Vice President - Group Manager Marcia McAdams Real Estate Industries Department Vice President, CRA Officer Manufacturers Bank California United Bank Teresa Isago Operations and Administrative Manager Los Angeles LDC, Inc. www.losangelesldc.com
  4. 4. Who We Are • Created in 1980 by the City of Los Angeles • Certified by US Department of Treasury as a Community Development Financial Institution (CDFI) • Licensed as a commercial finance lender (CFL) by the California Department of Corporations • Experienced financial advisor for tax-exempt bond transactions Where We Add Value • Minority and women-owned businesses • Mission driven tax exempt organizations with financing needs • Small business owner/users of commercial real estate Our Sweet Spot • Small to middle-sized businesses • Transactions under $10,000,000 • Job-sustaining economic development transactions • Borrowers working to offer expanded access to social services • Complex community development transactions that require custom financing solutions www.losangelesldc.com
  5. 5. Drapes 4 Show, Inc. Drapes 4 Show, Inc. is a full service manufacturer of table/stage manufacturing table skirting and linens skirting, table linens, placemats, throw covers and drop-overs for the Hospitality, Healthcare, Display and Conference industries. The company has been in business since 1983 solving problems and developing new products to help their customers increase their revenue. LDC Role: Financial Advisor Impact: • July 15, 2008 Drapes 4 Show moved into their new plant in Sylmar, CA and did not relocate to Las Vegas, which they had been considering. • 30 living wage jobs are created or retained. • Drapes 4 Show acquires enough plant capacity to double its revenues. • City of Los Angeles retains a growing manufacturing business. Jason Honigberg, Drapes 4 Show’s Chief Financial Officer, with his mother, Karen Honigberg, founder and CEO of Drapes 4 Show Tools: • Bridge loan • Subordinated forgivable loan • Tax-exempt variable rate bonds Deal Size: $1,800,000 www.losangelesldc.com
  6. 6. Westerly School of Long Beach Westerly School was founded in 1991 by a group an independent K-8 school of visionary Long Beach families. The 5.5-acre campus currently operates using only modular buildings, but has an approved Master Plan for developing permanent buildings over time. The first building to be constructed was the Raymond F. Bizjack Arts Village, named after the founding Head of the School. The school has a strong track record of raising funds to support its operations and has the necessary pledges under its five-year Sending Down Roots (“SDR”) capital campaign to fund the design and retirement of the construction funding of the Arts Village. To expedite the construction, Westerly School sought the help of the Los Angeles LDC to arrange financing against its $2,000,000 SDR pledges. Impact: “Michael made it possible to close our On October 15, 2008, the Westerly School broke deal during the toughest financial ground on the Ray Bizjack Arts Village building. environment this country has seen since Construction was completed in October, 2009. the Great Depression, when no other organizations like Westerly had access to loans.” -- Byron Pinckert, Trustee LDC Role: Lender Tools: Mezzanine – Construction loan Deal Size: $1,450,000 www.losangelesldc.com
  7. 7. Los Angeles Arts Loan Fund The Los Angles Arts Affiliated with Center for Non Profit Management Loan Fund (LAALF) and Center for Cultural Innovation provides loans to artists and art organizations at a low cost while offering an expedited process. LAALF was launched in 2001 and its founding funders are a consortium of local foundations, corporations, the Los Angeles County Arts Commission and the Cultural Affairs Department of the City of Los Angeles. The services of the Los Angeles LDC were engaged for the 2008-2009 fiscal year to provide the LAALF with portfolio management, loan processing services and cash management services. The LAALF makes the credit decisions and the LDC provides all the back office support to this targeted micro lending program. Impact: LDC Role: Portfolio Manager • The LAALF is able to fund micro loans to artists and arts organizations in Los Angeles County with greater Tools: efficiency. • Loan Documentation & Closing • LAALF can focus its staff resources on developing • Loan accounting system awareness of the loan fund. • Cash management service • LAALF can focus its staff resources to loan approvals • Portfolio activity reporting and fund development. Deal Size: $200,000 www.losangelesldc.com
  8. 8. Asian American Drug Abuse Program a community based service organization The Asian American Drug Abuse Program (AADAP) serves the Asian American community throughout South Los Angeles County. Founded in 1972 to offer drug abuse prevention and treatment to the community, the AADAP has expanded its services in recent years to meet the communities’ changing needs. To support the growth of AADAP, the organization found a 25,000 AADAP President Mike Watanabe with Los square foot facility to house its Angeles LDC President/CEO Michael Banner entire administrative offices. “By working with the LDC, you get Having utilized the Los Angeles access to smart money - not only do LDC as its lead financing source for the past decade, AADAP engaged you get the best financing solution the Los Angeles LDC team for assistance with its latest acquisition. available, but you even learn a lot along LDC Role: the way.” -- Mike Watanabe: Financial Advisor and Lender Tools: Impact: • Bridge Loan The new tax exempt bonds provide AADAP with a reduced interest • Tax Exempt Bonds cost and annual debt service payments that are projected to produce a • New Market Tax Credits $2,000,000 savings during the next 10 years. Additionally, the new administrative facilities will provide the space for all necessary staff, Deal Size: $4,375,000 enabling the organization to continue serving the South Los Angeles community, which means about 50,000 clients each year. www.losangelesldc.com
  9. 9. Frederick and Laurie Smith’s Samitaur Constructs, Frederick and Laurie Smith’s planned 210,000 Samitaur Constructs square ft. office tower -- the Glass Tower -- for Jefferson and La Cienega, is a Transit-Oriented development sited to take advantage of the forthcoming Expo Rail Line The project carries with it aspirations to encourage the ongoing renewal of South LA, an area plagued with poverty and disinvestment for many years. It is the only proposed high-rise project in South Los Angeles. It will stimulate economic development by attracting retail and office tenants, including small businesses and creative/new media companies wanting to cluster in a knowledge worker hub. Samitaur Constructs holds the rights to build 3 towers. The Glass Tower is the 2nd building on this site, designed by Eric Owen Moss Architects, and will comple- ment the 3 story Samitaur building that was under construction during the 1993 LA Riots. LDC Role: Financial Advisor Impact: Creation of at least 1,200 new jobs is the goal for the project; additionally, it is the only commercial project planned along the new Westside EXPO light rail line This is the first new high-rise office building in South Los Angeles to attract creative/knowledge-based Tools: workers. • US Department of Housing and Urban Development (HUD) Section 108 Loan The Section 108 and BEDI assistance will fund future acquisition, Guarantee predevelopment and construction costs associated with the Project. A • Brownfield Economic Development primary impetus for the project was the advent of light passenger rail Initiative (BEDI) Grant running from Downtown to the University of Southern California along Jefferson Boulevard to the Beach. The LDC worked with the The Deal: $10,000,000 developer to secure funds for predevelopment costs and start the project to retain its entitlements. www.losangelesldc.com
  10. 10. LOS ANGELES LDC, Inc., and SUBSIDIARIES CONSOLIDATED STATEMENT of FINANCIAL POSITION ASSETS REVENUE AND EXPENSE 2009 Assets 2009 Revenues Cash and cash equivalents $ 1,311,343 Interest Investments 1,114,507 Loans $ 365,035 Notes receivables, less allowances for uncollectible Investments 41,088 loans of $459, $161 and $230,316, respectively 5,582,123 Loan Fees 35,286 Interest receivable 47,729 Service fee income 31,271 Prepaids and other receivables 7,094 Grants 43,000 Investment in 504 ACE Loan Fund I (2004), LLC 244,707 Investments in subsidary 9,200 Property and equipment, net of accumulated depreciation of $55,766 and $53,568, respectively Other 53,634 Total Assets $ 8,307,503 Total Revenues $ 57,514 Interest expense 214,756 Liabilities Liabilities and Net Assets Net interest, fees and other income 360,758 Lines of Credit $ 52,600 Allowance for uncollectable loans (378,845) Accounts payables and accrued expenses 128,891 Net interest, fees and other income after allowance for uncollectable loans (18,807) Loan Participations 978,300 Notes payable 3,800,000 Total Functional expenses 538,788 Total Liabilities 4,959,791 Change in net assets (556,875) Net Assets Net assets, beginning of year 3,904,587 unrestricted -- general $ 3,347,712 Net assets, end of year $ 3,347,712 Total liabilities and net assets $ 8,307,503 www.losangelesldc.com

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