ECONOMIC INCENTIVES FOR THE METRO ATLANTA REGION

Why Economic Incentives?

People respond better to laws that give them some benefit and not just restrict their ability to live

An economic incentive will motivate people to the region and not push them away

Specific Industry Incentives based on location

Why? Results based off of the Georgia

Entertainment Industry Investment Act of 2008

Imitation is the highest form of flattery

Movies Shot in Georgia More than 26 feature films were filmed in

Georgia during the 2009 fiscal year* Features include:

The Blind Side The Crazies Zombieland The Last Song Why Did I get Married Too

*Source: Augusta Chronicle

Financial year 2009results from the Georgia Entertainment Investment Act of 2008

180 Commercials 29 Music Videos 14 Feature films 12 Independent Films 78 Episodic and Television Total Combined Budgets: $716.7 millionSource: Dept of Economic Development, Georgia Film, Music & Digital Entertainment Office

348 Number of Combined Productions $770.2 million Total value of all

production budgets $1.3 billion Economic Impact

Source: Dept of Economic Development, Georgia Film, Music & Digital Entertainment Office (including interactive video games)

Financial year 2009results from the Georgia Entertainment Investment Act of 2008

Drawbacks to Media Act Most of the filming has only taken place

in Atlanta or Savannah Recently, there was filming in 50 counties

in Georgia Georgia has a total of 159 counties

*Source: Augusta Chronicle

Industry specific incentives based on location needed

Easy for industries to know where they get breaks

Migration of workers, experts, and students in specific areas to certain parts of the metro region

Industries with growth projections for the future

Biotechnology Ecommerce & Online Auctions Voice over Internet Providers Environmental Consulting Recycling Facilities Land DevelopmentJosh Spiro, The Best and Worst Industries of the Next Decade (2010),

http://www.inc.com/news/articles/2010/01/best-and-worst-industries.html

General Assembly to pick where industry incentives are placed

To keep counties from competing with each other

Businesses will view the region with stability since the General Assembly have shown control

Dividing up the Metro Atlanta Region

Educational Enhancements in Specified Regions

Board of Regents of the University System of Georgia Develop training programs for schools located

within designated regions The values of an educated workforce Who works the cold room? How school developments impact in the

surrounding community

Energy Consumption v. Production

Energy Price Comparison

Carbon Dioxide Projections

Will new vehicles cause electricity consumption to increase?

Chevy Volt

Nissan Leaf

Ford Focus Electric

Property Assessed Clean Energy (PACE) Bonds

What is PACE used to finance? Advantages associated with using PACE

bonds Differences in PACE for the various states

with enabling legislation

What are PACE bonds financing?

Joe Biden, Steven Chu, and Shaun Donovan http://www.youtube.com/watch?v=2HpwQff2tI

A

Bill Clinton http://www.youtube.com/watch?v=-UjhPf6Go5

A

How to set up PACE Financing

1. The passage of state enabling legislation allowing for special municipal taxing districts

2. Municipality (city or county) creates a special “PACE” district

3. PACE districts issues a PACE master bond4. Commercial/residential real estate owners apply

for PACE funds to install hyper energy efficiency measures and renewable energy production

5. PACE funding treated as senior “property tax lien” and repaid by real estate owner over 20 years as an annual property tax surcharge

PACE Bonds are coming to a state near you

States with legislation enabling PACE Financing California (AB 811) Colorado (HB 08-1350) Illinois (SB 583) Louisiana (SB 224) Maryland (HB 1567) Nevada (SB 398) New Mexico (HB 572) Ohio (BH 1) Oklahoma (SB 668) Oregon (HB 2181 & 2626) Texas (HB 1391 & HB 1937) Vermont (H 446) Virginia (SB 1212) Wisconsin (AB 255)

An example of PACE(warning some math involved!)

The amount of seniority to the existing mortgage created by a PACE lien will typically represent less than 1% of home value

This is because in most PACE states, upon foreclosure, only the delinquent tax lien gets paid (not the whole PACE loan) while the homeowner assumes the remaining balance

Assumptions: Home Value: $300,000 Mortgage: $250,000 PACE Lien: $15,000(5% of home value) Annual PACE: $1,392(7% rate, 20 year amortization)

Property Surcharge Average Period Between Less than 12 months

Delinquency and Foreclosure Assume 1 year PACE surcharge is delinquent and paid ahead of the mortgage: Senior Payment:$1,392 % of Home Value:.5% % of Existing Mortgage:.6%

Let’s compare legislation Texas

http://files.statesurge.com/file/896737 California

http://info.sen.ca.gov/pub/07-08/bill/asm/ab_0801-0850/ab_811_bill_20080721_chaptered.pdf

Georgia http://www.legis.state.ga.us/legis/2009_10/pdf

/hb1388.pdf

Berkeley Example

http://www.cityofberkeley.info/uploadedFiles/Planning_and_Development/Level_3_-_Energy_and_Sustainable_Development/Berkeley%20FIRST%20Initial%20%20Evaluation%20%20final%20%282%29.pdf

http://berkeley.solarmap.org/solarmap_v4.html