Cra group 1 powerpoint 1

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Cra group 1 powerpoint 1

  1. 1. CITY OF LA: POST REDEVELOPMENT USC SOL PRICE SCHOOL OF PUBLIC POLICY PPD 619: SMART GROWTH & URBAN SPRAWLGROUP 1JOY-ALONICA BAUTISTAJEFF KHAUMARISOL MACIELTHOMAS WONG
  2. 2. RESEARCH OUTLINEq Background Contextq Meeting w/ City of LA’s Planning Departmentq Case Study of California Cities q City of Alhambra Source: http://la.curbed.com/tags/budgetq Best Practices of Economic Development q Chicago, Ilinois q Phoenix, Arizona q New York, New York
  3. 3. BACKGROUND CONTEXTq California Redevelopment Agencies died on February 1, 2012.q Land-use conflicts and much more…q Successor agenciesq What is LA doing to spur economic development?
  4. 4. RECOMMDENDATION #1 CITY OF ALHAMBRA
  5. 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  fundsNew 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. 6. ADDITIONAL FINANCING TOOLSLoans 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  assetsCity 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. 7. RECOMMENDATION #2 NYCEDCq  Commercial Tax Incentivesq Empower Zone Benefitsq  Commercial Revitalization Program Source: http://www.nycedc.com
  8. 8. RECOMMENDATION #2 New York State EDC Example of IDA Benefits Project "X" builds 50,000 sq. ft. building for $5,000,000, and hasq 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 yearsq 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. 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. 10. Chicago ModelHED StructureSource: http://www.cityofchicago.org/content/city/en/depts/dcd/auto_generated/dcd_our_structure.html
  11. 11. RECOMMENDATION #4q  Streamlined processq  Simplified way to get involved with developmentq  Department that knows about the start-up process Source: http://phoenix.govq  Desire to have a relationship with business owners
  12. 12. CONCLUSIONq  Pass Limited Transition Ordinanceq  Institute economic development plan using alternative financing toolsq Capitalize on incentives and provide a customer advocacy programq Streamline planning & development processes
  13. 13. THANK YOU! QUESTIONS?

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