CDFA // BNY MELLON DE DEVELOPMENT FIN FINANCE WEBCAST SERIES - - PowerPoint PPT Presentation

WWW.CDFA.NET / / WWW.BNYMELLON.COM

CDFA // BNY MELLON DE DEVELOPMENT FIN FINANCE WEBCAST SERIES Capital for Main Street

The Broadcast will Begin at 1:00pm Eastern

Submit your questions in advance using the GoToWebinar control panel View previous webcast recordings online at www.cdfa.net

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Are you a CDFA Member?

Members receive exclusive access to thousands of resources in the CDFA Online Resource Database. Create your unique login today at www.cdfa.net

Pearl-Jean Mabe

Director, Research and Technical Assistance Council of Development Finance Agencies Columbus, OH

Hello! Welcome to the webcast.

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Legal Disclaimer

CDFA is not herein engaged in rendering legal, accounting, financial or

• ther advisory services, nor does CDFA intend that the material

included herein be relied upon to the exclusion of outside counsel or a municipal advisor. This publication, report or presentation is intended to provide accurate and authoritative general information and does not constitute advising on any municipal security or municipal financial

• product. CDFA is not a registered municipal advisor and does not

provide advice, guidance or recommendations on the issuance of municipal securities or municipal financial products. Those seeking to conduct complex financial transitions using the best practices mentioned in this publication, report or presentation are encouraged to seek the advice of a skilled legal, financial and/or registered municipal advisor. Questions concerning this publication, report or presentation should be directed to info@cdfa.net.

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Join the Conversation

Listen through the telephone for best audio quality. Submit your questions to the panelists here.

WWW.CDFA.NET / / WWW.BNYMELLON.COM

CDFA Training Institute

16 courses in development finance designed for all skill levels. Learn more and register today at www.cdfa.net

Panelists

St Stuart Wei eiss ss, Mod

• derator

Vice President, Business Development, The Bank of New York Mellon Han annah Whi hite Director of Outreach and Engagement, The National Main Street Center Lau Laura Burns Community Impact Compliance Manager, National Trust Community Investment Corporation Suz Suzanne Per erreault Small Business Program Manager, Community Development Unit, Michigan Economic Development Corporation Lau Lauren Mau auldin Director of Neighborhood Revitalization, Historic Macon

Capital for Main Street

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Are you a CDFA Member?

Members receive exclusive access to thousands of resources in the CDFA Online Resource Database. Create your unique login today at www.cdfa.net

Stuart Weiss

Vice President, Business Development The Bank of New York Mellon Los Angeles, CA

Capital for Main Street

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Hannah White

Director of Outreach and Engagement, The National Main Street Center Chicago, IL

CDFA Training Institute

16 courses in development finance designed for all skill levels. Learn more and register today at www.cdfa.net

Capital for Main Street

MAIN STREET AMERICA

+ Main Street America is a program of the National Main Street Center. It is a national movement of 1,000+ local affiliate organizations and 45 State, City, County-level Main Street Coordinating Programs. + For 40 years, the Main Street program has been a leader in preservation-based economic development, supporting thousands of communities across the country bring new economic activity and enhance quality of life in their downtowns.

MAIN STREETS ACROSS THE MAP

MAIN STREETS ARE MORE IMPORTANT THAN EVER

ENGAGEMENT AND LEADERSHIP

PUBLIC SPACE

SMALL BUSINESS ECONOMY

COMMON CHALLENGES

Main Street redevelopment faces a number of fundamental challenges

– Aging infrastructure and historic buildings – Small lenders, which traditionally serve entrepreneurs and small businesses, have been disproportionately affected by new compliance measures – Consolidation of community banks – Local Capacity – Main Streets’ scale itself poses a challenges – the size of the deal is often too small to be considered worth the risk

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Laura Burns

Community Impact Compliance Manager, The National Trust Community Investment Corporation Washington D.C.

CDFA Training Institute

16 courses in development finance designed for all skill levels. Learn more and register today at www.cdfa.net

Capital for Main Street

Using Tax Credits in Your Main Street

LAURA BURNS | COMMUNITY IMPACT COMPLIANCE MANAGER

NTCIC

2

Who is NTCIC?

• NTCIC finances sustainable economic development in

communities nationwide by providing tax credit syndication, technical assistance & advocacy for the preservation of historic properties, especially in low- income communities, and the production of renewable energy

• Formed in 2000 to take advantage of the newly created

New Markets Tax Credit Program

• Qualified Community Development Entity (CDE)
• Tax Credit Syndicator

– Connect private investor capital with developers rehabilitating historic buildings

NTCIC

3

NTCIC’s Tax Credit Role

• As a Tax Credit Syndicator
• Provides guidance to developers and individuals

seeking tax credits for historic rehabilitation

• Evaluates specifics of development projects and

identifies additional sources of capital available

• Connects individuals to investors actively seeking

historic projects to support and finance

• Supports projects through their ongoing compliance

periods from financial closing to exit

NTCIC

4

NTCIC’s Tax Credit Role

• As a Community Development Entity
• Seek projects in underserved communities

looking for both New Markets Tax Credits and Historic Tax Credits

• Guide projects through the allocation process
• Offer products that directly support smaller-scale

real estate development projects located in Main Street Communities

• The Irvin Henderson Main Street Revitalization Fund

is actively seeking projects to support

NTCIC

5

The Irvin Henderson Main Street Revitalization Fund

NTCIC offers low-cost tax credit financing to historic properties in Main Street communities. NTCIC’s Main Street Revitalization Fund provides up to $2 million in NMTC allocation per project.

NTCIC

6

How it Helps

• Targets historic preservation efforts in

Main Street communities

• Historic Tax Credits are combined and

enhanced with New Markets Tax Credits to provide additional equity into a project

• Financing partnerships with legal and

accounting experts cap transaction fees

• Offers above market pricing and more

attractive rates than traditional real estate financing

• Provides vital gap financing for projects

that have $4MM - $8MM in QREs

NTCIC

7

NTCIC

8

Community Benefits

• How do community benefits factor in to tax

credit utilization?

– Overall impacts are very important

• Examples:

– Jobs

• Quantity
• Quality

– Low-Income Individuals served – Community input – Annual Participants

– Required reporting over full 7-year compliance period

NTCIC

9

Case Study:

The Owosso Armory

NTCIC

10

The Owosso Armory

NTCIC

• The Owosso Michigan National Guard Armory was constructed in

1915.

• During World War I, Company M deployed from the Armory for

France.

– These soldiers took part in the Battle of Argonne-Seuse and were among the first American troops to set foot on German soil during the war.

• By mid-century the Armory was home to the 144th National Guard

unit.

• Armory served as a community space by hosting debates, prize

fights, weddings and artists

• In 2007 the 144th left the nearly century-old building for a modern

facility and the Armory remained vacant until it’s redevelopment in been vacant until its restoration in 2017

11

The Owosso Armory

NTCIC

• Led by the local community and designed to catalyze economic

development

• Project sponsored by Shiawassee Chamber of Commerce whose

mission is to stimulate economic development in Owosso and Shiawassee County

• Project goal was to create and spin out new businesses into the

community by creating small business support and office space

• Initial starts in 2013

– Worked with a developer and created an early cost model

• Encountered early predevelopment challenges

– Reached out to several lenders

– Financing gap existed even with historic tax credits

12

Revitalization Efforts

NTCIC

• Member of Main Streets America Program
• Main Street Coordinators act as a connector at the local

level to support community transformation efforts

• Main Street connected Owosso Armory preservation

efforts to NTCIC and the Main Street Revitalization Fund

13

The Owosso Main Street

NTCIC

14

The Closing Process

• All sources of funding are identified and

secured

• Lenders, CDEs, investors, and project

sponsors engage their individual counsels as well as tax credit accountants to begin negotiating terms and determining how the funds will flow

• Project sponsors are simultaneously

working with the construction and development teams to finalize plans

NTCIC

15

Revitalization Efforts

NTCIC

16

NTCIC

17

Community Impact

20,320 total rentable square footage 2,138 square feet of small-business incubation and support

• 5 small businesses provided with flexible rental space

and business support 4,269 square feet of non-profit offices 2,000 square feet of community space

• Over 373 community events in 2018

Inspiration for other Downtown Owosso businesses.

NTCIC

• Partner with NTCIC

– NTCIC will provide assistance and guidance as you navigate the process of financing local historic preservation efforts – We can help you ready a Main Street preservation project to apply for allocation through the Main Street Revitalization Fund

• Reach out to your local Main Street program

– Become a member and gain access to toolkits, seminars, leadership training and more help you support revitalization efforts in your community

18

Main Street Toolkit

NTCIC

19

For More Info:

Laura Burns lburns@ntcic.com

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Suzanne Perreault

Small Business Program Manager, Community Development Unit, Michigan Economic Development Corporation Oakland County, MI

CDFA Training Institute

16 courses in development finance designed for all skill levels. Learn more and register today at www.cdfa.net

Capital for Main Street

Capital for Main Street

MEDC | CDFA WEBINAR – CAPITAL FOR MAIN STREET

Capital for Main Street

MEDC | CDFA WEBINAR – CAPITAL FOR MAIN STREET

Match on Main

MEDC | CDFA WEBINAR – CAPITAL FOR MAIN STREET

PROGRAM GOALS

Strengthen small businesses through working with the local Main Street program and through consulting with SBDC thus making the business more sustainable for the long term To reactivate underutilized and vacant commercial space in MMS district To grow the Community’s entrepreneurial ecosystem by supporting place-based businesses that fit within the Main Street Program’s strategy and priorities

FUNDING TRACKS

Track 1 – Technical Assistance for Interior design, layout.

• Up to $5,000.
• 10% match.

Track 2 – Interior Renovations.

• Up to $25,000.
• 10% match.

Track 3 – Working Capital.

• Up to $25,000.
• 10% match.

Match on Main

MEDC | CDFA WEBINAR – CAPITAL FOR MAIN STREET

WHO IS ELEGIBLE TO APPLY?

• Select or master level Michigan Main Street Programs with eligible businesses

may apply to Match on Main.

• Michigan Main Street Programs must be in good standing with MMS & RRC.
• MMS monthly reporting must be up to date.
• Community must be engaged with, in good standing, and making progress in

RRC.

• Small businesses:
• Must be locally owned and operated, non franchise.
• Must be located in or looking to establish themselves in a Michigan Main

Street district.

• “Expanding businesses” must be stimulating underutilized or vacant space within

buildings.

MEDC | CDFA WEBINAR – CAPITAL FOR MAIN STREET

Match on Main

MEDC | CDFA WEBINAR – CAPITAL FOR MAIN STREET

Evaluation Criteria

• Projects will be evaluated on a variety of factors,

including but not limited to:

• Overall impact of the business within the MS

district

• Fit with the community’s vision, priorities

and strategy

• Job creation
• Activation of underutilized or vacant space
• Leveraged private investment
• A clear understanding of the total project

costs and available matching funds

• Strength of the business plan

Match on Main

MEDC | CDFA WEBINAR – CAPITAL FOR MAIN STREET

The Cheese Shop of Saline

• Expansion – 560 sq. ft.
• Creating an additional 3 FTE
• Awarded $5K – Track 1
• Interior layout design,

lighting & signage, kitchen design, seating layout

• Awarded $25K – Track 2
• Functional kitchen space
• Dining area with tables and

chairs

• Display and storage

equipment, Wine display; lighting, code compliance items

• Leveraged private investment -

$2,500

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Lauren Mauldin

Director of Neighborhood Revitalization, Historic Macon Macon, GA

CDFA Training Institute

16 courses in development finance designed for all skill levels. Learn more and register today at www.cdfa.net

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Audience Questions

Submit t you

• ur ques

esti tions to

• th

the e panel el now by usin ing th the e GoT

• ToWebinar con
• ntrol

l pan anel. el.

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Register Online at www.cdfa.net

Upcoming Events at CDFA

CDF CDFA ED EDA Revolv lvin ing Loan Loan Fun Fund Webin ebinar Ser Serie ies: : Bu Building Par artnerships to

• Maxim

ximize You

• ur RLF

RLF Imp mpact August 6, 2019 2:00 PM Eastern CDF CDFA Fed ederal l Fi Fina nancin ing Webin ebinar Serie Series: : Opp Opportunit ity Zon

• nes an

and Transpor

• rtatio

ion Infr frastructure fea eaturing DO DOT T and and ED EDA August 22, 2019 2:00 PM Eastern

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Join Us for Future Webcasts CDFA // BNY MELLON DE DEVELOPMENT FIN FINANCE WEBCAST SERIES Tuesday, August 20 @ 1:00 pm Eastern

Ce Celeb lebratin ing 10 years of f th the CD CDFA // // BN BNY Mell llon Develo lopment Fin inance Webcast Se Serie ries!

WWW.CDFA.NET / / WWW.BNYMELLON.COM

Stuart Weiss

Vice President, Business Development 213-553-9510 stuart.weiss@bnymellon.com

The material contained herein is for informational purposes only. The content of this is not intended to provide authoritative financial, legal, regulatory or other professional

• advice. The Bank of New York Mellon Corporation and any of its subsidiaries makes no express or implied warranty regarding such material, and hereby expressly disclaims all

legal liability and responsibility to persons or entities that use this report based on their reliance of the information in such report. The presentation of this material neither constitutes an offer to sell nor a solicitation of an offer to buy any securities described herein.

Contact Us

Pearl-Jean Mabe

Director, Research and Technical Assistance 614-705-1315 pmabe@cdfa.net