financing rural economic development james hamill principal bridge strategic partners 1700 n....
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Financing Rural Economic Development
James HamillPrincipal Bridge Strategic Partners1700 N. Broadway, Suite 405Walnut Creek, California [email protected]
Financing Tools for Economic Development
1. Infrastructure Financing (Water, Wastewater, Streets, etc.)
2. Energy Efficiency/Renewable Energy/Water Conservation
3. New Market Tax Credits
Statewide Communities Infrastructure Program (SCIP)
• SCIP is a pooled tax exempt bond financing program which can finance impact fees and public improvements for private developments.
• Any City/County/Special District can participate in SCIP
• SCIP has issued $200 MM in bonds since its inception in 2003
• These are 30 year tax exempt bonds secured by property owner assessments
Eligible Improvements Fees for infrastructure to be owned by public
agency but necessary for development
Improvements identified in the 1913 / 1915 Assessment Act/Community Facilities District Act of 1982/Infrastructure Financing District Act, include but are not limited to, are listed below:
Eligible Improvements
Street and Roadways Street lighting
Freeway Interchanges Parking
Pedestrian Malls Landscaping
Sidewalks Sewer and Pipelines
Storm Drainage Parks and Parkways
Flood Control Bridges and Thoroughfares
Water Supply Bicycle and Pedestrian Trails
Gas Supply Open Space and Greenbelts
SCIP Case Study
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Statewide Community Infrastructure Program Revenue Bonds
Transaction Summary
Four development projects for four local agencies
Total Assessment Amount: $9,190,000 Total Assessed / Structure Value: $45,810,409 Overall Value-to-Lien: 4.98x
Local Agency Project Name Land Use Purpose
Yuba City (4.19%) New Earth Property Commercial - RetailWater, Sewer, Public Facility, Levee
City of Manteca (11.55%) Union Ranch East ResidentialStorm Drain & Improvement
City of Tracy (78.85%) Tracy Gateway Commercial - Retail Public Improvements
El Dorado County DOT (5.42%) Diamond Center Commercial - RetailRoad, Water, Wastewater & Improvement
What is Property Assessed Clean Energy (PACE)?
• PACE is a way to finance energy efficiency, renewable energy and water conservation upgrades to buildings.
• 100% financing for energy/water conservation upgrades repaid as a property tax assessment for up to 20 years.
• Uses land-secured financing mechanism that local governments have used for over 100 years.
• Building owner can transfer repayment obligation to a new owner upon sale of such building.
www.pacenow.org
Energy Efficiency/Renewable Energy/Water Conservation
Property Assessed Clean Energy
(PACE)
• Office, industrial, agriculture, retail, hotel, nonprofits and multifamily can finance upgrades for up to 20 years.
• An assessment lien is placed on the property and repaid in semi-annual installments.
• Eligible improvements include but are not limited to: solar, HVAC, boilers & chillers, lighting, building controls, windows, water-efficient plumbing and others.
• CALED has a PACE program established for local governments.
Sonoma Mountain Village (Office Park)
Sonoma Mountain Village used PACE to finance a 1 MW solar electric system in Rohnert Park, CA, that combined with an older system allowed SMV to cover 100% of its electric needs from on-site renewable power.
Project Economics
Amount - $1,600,000
Term – 20 years
Rate – 7% fixed
Building Value - $50,000,000
PACE Assessment to Value – 3.2%
New Market Tax Credits (NMTC)
• NMTC’s authorized by the Community Renewal Tax Relief of 2000.
• Established to stimulate economic growth in low-income urban neighborhoods and rural communities.
• The program attracts capital by providing private investors with a federal tax credit.
• Economic development projects must be in census tracts where the poverty rate is at least 20% or the median family income does not exceed 80% of the area median income.
• Tax credits available through Community Development Entities (CDEs) throughout the State.
http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=5
Case Study: West Hills Community College District
Location: Coalinga, CA
Facility: Agricultural Science facility aka Farm of the Future
Benefits: • Career and technical education
complex, student run farmers market, solar facility ($400K in savings per year)
• Provides the community increased access to healthy foods through a food box program and community garden open to the public
Case Study: Shasta Community Health Center
Location: Redding, CA
Facility: Medical health clinic
Benefits: • 24 new, permanent full
time jobs, and 311 full time jobs retained.
• 24 new exam rooms providing access to 6,000 new patients and increasing capacity to 21,000-24,000 additional patients per year