managing economic development organizations...atlanta is particularly attractive to firms in six key...
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Managing Economic Development Organizations
Dynamic Growing Economy
Technology, Innovation
Investment
Housing
Infrastructure,Transportation
Education
Balanced Growth
240,000 250,000 260,000 270,000 280,000 290,000 300,000
2009 2010 2011 2012
GDP Atlanta MSA
Jobs and Competitiveness
Source: BEA
Reality Check: Economic Cycle
3Business-cycle-graph better.jpgimagesndibeconomics.wikispaces.com.
Reality Check: Business Life Cycle
4
SBA estimates that the average life cycle of a business is 7 years
Cycle of Economic Development
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Reality Check: Economic Development Efforts
6
According to the US Census Bureau, this is the number of Cities in 2013
Economic Development Strategies/ Organization
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Retention
Expansion
Attraction
Creation
Economic Development
Organizational Structure
Housing Finance Business Development Redevelopment
Legal Finance
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Business Development
Business Development Goals
Clusters of FocusAttraction EffortsRetention/Expansion ProgramsEntrepreneurship ProgramsResults
Atlanta is particularly attractive to firms in six key sectors Economic development efforts should focus on growing:
1. Digital arts and new media production
2. Life sciences
3. Applied computational processing and engineering
4. Corporate headquarters and professional and management services
5. Advanced logistics
6. Conventions and tourism
• Motion picture production• Software and computer programming• Audio production• Broadcasting
Digital arts and new media production
Life sciences• Medical devices• Biological products• Medical laboratories• Biotechnology R&D• Pharmaceuticals
Conventions and tourism• Hospitality• Attractions and conferences• Food and beverage• Transportation
• Engineering services• Computer systems design services• Scientific R&D• Advanced manufacturing• Financial technology• Health information technology
Applied computational processing and engineering
Corporate headquarters and professional and management services
• Headquarters and back office• Management consulting
Advanced logistics
• Freight air transportation• Distribution and logistics consulting
services
PROGRAMS FOR BUSINESSATTRACTION
• Site Selection Assistance• Foreign Direct Investment
• Economic Opportunity Fund• Lease Purchase Bonds• 501c3 Revenue Bonds• Small Business Loans
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Business Outreach & Contact
Interview, Survey & Assessment
Recommendations and Referrals Action Planning Follow up and
ReviewAssess and Report Economic Impact
BUSINESS RETENTION & EXPANSION PROGRAM OVERVIEW
Operates as IA’s Business Customer Service Program
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Objectives
Entrepreneur
Educate
AdvocateMeasure
* Requirement Analysis* Idea Generation* Idea Evaluation* Project Planning
* Construction* Prototype Development* Pilot Application* Testing
* Production* Market Launch and Penetration (national/international)
3 Phases of a Simplified Innovation Process
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Conception Implementation Marketing
City of Atlanta Innovation Center:Demonstration Project
Goals:• Create new markets and new jobs • Support existing local innovators and Entrepreneurs• Improve quality and efficiency of City services and operations• Advance the City’s Sustainable Initiatives and economic development strategy• Position Atlanta as a location for cutting edge innovation• Retain entrepreneurs in the City of Atlanta• Attract and maintain investments as a result of new innovations• Create a collaborative community of relationships between government and
entrepreneurs
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City of Atlanta Innovation Center:Startup Atlanta Ordinance
DESCRIPTION: An ordinance to amend the Occupation Tax Ordinance to provide a tax exemption for new and emerging technology businesses.
GOALS:1. Job Creation2. Retention of entrepreneurs 3. Encourage investment in certain types of businesses in fields related to high
technology, life sciences, information technology and intellectual property4. Catalyze Atlanta’s entrepreneurial ecosystem 5. Position Atlanta as a location for cutting edge innovative companies
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$738,593,674
$1,775,431,503
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
$1,800,000,000
$2,000,000,000
2012 2013
Business Development Economic Impact
For this 3 year period, for every $1 invested the City received over $9 in local taxes
Return on an Economic Development Services Investment
2011-2013
$6,750,000
$260,800,000
$65,800,000
$141,550,000
$2,000,000$25,000,000 $15,500,000
$473,280,000
$0$50,000,000$100,000,000$150,000,000$200,000,000$250,000,000$300,000,000$350,000,000$400,000,000$450,000,000$500,000,000
Digital Arts andMedia
Production
Life Sciences AppliedComputationalProcessing andEngineering
CorporateHeadquarters
and ProfessionalServices
AdvancedLogistics
Conventions andTourism
AdvancedManufacturing
Other
2011‐2013 Investment Per Industry
Digital Arts and Media
Production10%
Life Sciences7%
Applied Computational Processing and Engineering
29%Corporate
Headquarters and
Professional Services26%
Advanced Logistics
2%
Conventions and Tourism
9%
Advanced Manufacturing
7%
Other10%
2011‐2013Wins Per Industry
Digital Arts and Media
Production, 580
Life Sciences, 1060
Applied Computational Processing and
Engineering, 2521
Corporate Headquarters and
Professional Services, 1237
Advanced Logistics, 25
Conventions and Tourism, 347
Advanced Manufacturing,
177
Other, 352
2011‐2013Jobs Per Industry
Business Attraction60 companies have relocated to the City of Atlanta occupying over
8.6M square feet of real estate space
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EOF GRANT Carter’s/Oshkosh
Phipps Tower-3438 Peachtree Road
• The City of Atlanta offered $350,000 from the economic opportunity fund (EOF Grant) for this competitive project to expand in the City of Atlanta.
• The company agreed to hire 200 jobs at an average annual wage of $88,000.
• The project’s capital investment was $30M. • The company absorbed 80K sf of class” A” office space.
LEASE PROJECT Novare Project
SkyHouse 100 6th Street
• $63,280,000 Lease Purchase Revenue Bond to Finance a Proposed Residential and Retail Project
• Approximately $500,000 increase in property tax • Workforce Housing Component• 100 construction jobs and 70-90 permanent jobs• Estimated Tax Savings is $3,093,031 within 10
years
SMALL BUSINESS LOAN PROGRAM
• From 2001-2012, Invest Atlanta has closed 117 loans representing $8,194,069 and leveraging $32,582,163
• Businesses in many sectors have been financed • Companies Include: Pencil Factory, White Oak Kitchen, Integrated
Capital Partners, Like A River Salon and Spa, Utopia Trading Inc.
RedevelopmentDepartment
Programs for Revitalizing Specific Atlanta Areas
Programs and Initiatives
• Tax Allocation Districts (TADs)– Community Improvement Fund– Downtown Façade Improvement Grant Program
• New Markets Tax Credits (NMTC)– Atlanta Seed Equity Initiative
• EB-5 Foreign Direct Investment Program (currently in the application process)
City of Atlanta TADs
• 10 Tax Allocation Districts
• To date, approximately $560 million in TAD bonds have provided gap financing for over $3.4 billion in private development
• Assessed property values in TADs have grown 20% since 1998 while City of Atlanta has grown at 5%
• Incentivize development in blighted and underdeveloped areas of City
Westside TAD
• Established in 1992, expanded in 1998 to leverage momentum from 1996 Olympics to redevelop Downtown
– Connect neighborhood assets– Create live-work-play community
surrounding Centennial Olympic Park– Redevelop blighted residential
neighborhoods west of Downtown
• 3 bond issues totaling: $161.3 million
– Allocations to Neighborhood Fund and Public Purpose Project Fund
• Base Assessed Value: $270,693,404• 2011 Assessed Value: $705,000,000
Bef
ore:
The Ellis Hotel
Afte
r:
Program Goals:• Enhance the appearance of commercial areas
while building safer, more attractive and stable neighborhoods
• Help new and established businesses attract customers and generate increased revenues
• Support the Atlanta Streetcar and generate ridership
• Leverage private investment
• Complement other community revitalization efforts
Downtown Façade Improvement Grant Program
NMTC: Overview
• Federal program enacted by Congress in 2000 to drive private sector investment to urban and rural communities with high rates of poverty and unemployment
• NMTC Program attracts private investment to finance commercial, industrial, manufacturing and mixed‐use projects in low‐income neighborhoods
• Federal priorities for NMTC investments:– Job Creation – Jobs Accessible to Low‐Income Persons– Goods and Services to Low‐Income Communities– Flexible Lease Rates for Locally‐Owned Businesses– Improved Access to Healthy Foods
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New Markets Tax Credits Program
• Atlanta Emerging Markets,Inc. (AEMI), a CommunityDevelopment Entity 100%owned by Invest Atlanta, hasbeen awarded $110 Millionin New Markets Tax Creditallocation since 2007
• The NMTC program providesreal estate developers andoperating businesses withbelow market rate debtproducts with favorableterms
Eligible Areas for Investment
NMTC Previous TransactionsAerotropolis Atlanta
National Center for Civil & Human RightsGeorgia Aquarium
200 Peachtree
$30 million mezzanine loan to finance the acquisition, demolition and remediation of the 122 acre Ford auto plant in May 2009. Over 400 annual permanent jobs created.
$12 million mezzanine loan to convert the historic Macy’s building into a special event center that includes a jazz club, banquet hall, meeting rooms and offices. Over 623 annual permanent jobs were created.
$25 million mezzanine loan to finance the expansion and renovation of aquarium exhibits in December 2010. Over 478 annual permanent jobs created.
$13 million NMTC loan to finance the construction of the NCCHR in January 2013. Over 300 annual permanent jobs created.
Invest Atlanta SupportsAtlanta Better Buildings Challenge
Invest Atlanta’s goals for energy savings projects:• Upgrade older buildings with new technology• Attract tenants to decrease vacancy• Create jobs
Four diverse buildings selected as priorities for TAD funding:1. Walton Building – historic building being converted to hotel2. 100 Peachtree – 35‐story office building3. English Avenue Yards – warehouse and industrial loft campus4. American Cancer Center – office building with interior atrium
Housing Finance Department
Programs for City Living
PROGRAMS FOR HOMEOWNERSHIP
• $60M available• 1st mortgage program• FHA loans only• Up to 5% grant• 120% ‐ 140% AMI• $374,268 max purchase price
HOME ATLANTA 4.0
• $500K available• 2nd mortgage program• Up to $15K• 5 year deferred loan• 115% ‐120% AMI• 203K loans eligible• No purchase price limit
NEIGHBORHOOD LIFT
• $800K available• 2nd mortgage program• Up to $10K• 5 year deferred loan• 80% AMI• First‐time homebuyer • $252,890 max purchase price
AAHOP
• $400K available• 10% of sales price – up to $15K
• 5 year deferred loan• 115% ‐120% AMI• Vine City/English Ave. area only
• No purchase price limit
HOAP
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PROGRAMS FOR DEVELOPERS
TAX EXEMPT BONDS
• $75M+ available annually
• Below market interest
• Up to 100% financing
• Leverage 4% LIHTC
• 15‐30 year affordability
• 20/50 or 40/60
• 15% market rate units
HOUSING OPPORTUNITY
• 2nd mortgage loans
• Low interest rate (1%‐3%)
• Up to 20% of project cost
• 15 year affordability
• 15% market rate units
• 20% of units at 60% AMI
BELTLINE TRUST FUND
• Grant dollars
• Must be in Beltline TAD
• Adherence to design guidelines
• Up to 30% of project cost
• 15 year affordability
• 15% of units at 60% AMI
VINE CITY TRUST FUND
• 2nd mortgage loans
• Low interest rate (1%‐4%)
• Must be in Vine City or English Ave Communities
• Up to 50% of project cost
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TAX EXEMPT BONDSM-Street Apartments
• $28M in TEB financing for $31M project (80% Market; 20% Affordable)• New construction of 308 apartment units in West Midtown• Includes 8,500 sq.ft. of commercial space, leasing center, clubroom,
fitness center, parking deck, swimming pool, limited access features• Rated, lower floater bonds with Region LOC• Developer: Julian LeCraw & Company
BELTLINE AFFORDABLE HOUSING TRUST FUND
Lofts at Reynoldstown Crossing
• $1.1M grant for $5.1M project • Conversion and adaptive reuse of warehouse to 30 condominiums• Avg. purchase price $150K • Includes sales office with clubhouse, business/computer center, fitness
center, community room, gazebo, picnic area• Developer: Atlanta Beltline, Inc. and Urban Realty Partners
BELTLINE AFFORDABLE HOUSING TRUST FUNDPonce City Market
• $2M grant for a $37M housing component project creating 52 workforce housing units located in higher cost area
• Adaptive Reuse of 2M sq ft into 450K sq ft of office, 330K sq ft of retail & restaurant, 259 residential units
• Athena Healthcare will occupy 80K sq ft of office space, providing 500 jobs• Total project investment of $200M • Developer: Jamestown Properties
2010-2013 ResultsDeployed $135 million in incentives and leveraged an additional $1.38 billion of real estate investment and business activity
Created and/or retained 9,051 jobs occupying 8,680,196 square feet of real estate space
Stabilized and transformed neighborhoods by financing 2,500 units of housing and making the dream of homeownership a reality for 520 families
Funded 12 Tax Allocation District (TAD) projects spurring $80M in capital investment to assist in revitalizing and redeveloping five (5) neighborhoods in the City of Atlanta
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Neighborhood Revitalization$80M of capital has been invested in Vine City, English Avenue,
Lakewood, Greenbriar and Downtown Atlanta to fund 12 catalytic projects and assist in the revitalization of these neighborhoods
Quest Resource Center
Historic Westside Village
Trestletree Apartments
Mims Park
Villas at the Dome
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Catalytic ProjectsInvest Atlanta has incentivized several catalytic projects to advance
the city’s economic recovery
200 Peachtree
New Stadium Project
National Center for Civil & Human Rights
Ponce City Market
Dolphin Exhibit
Wal-Mart Grand Opening Historic Westside Village
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Thank you!
133 Peachtree Street NE Suite 2900Atlanta, GA 30303
(404)880-4100www.investatlanta.com