Public-Private Partnerships:
Evolving Resources
Counselors of Real Estate
Mid-year Meeting
New York, NY
March 30, 2009
Stephen B. Friedman, CRE, AICP
Vision | Economics | Strategy | Finance | Implementation
Overview
1.
2.
3.
4.
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The Stimulus and Development
New Markets Tax Credits
Low Income Housing Tax Credits
The Local Tool Kit
Tax Incremental Financing
Business Improvement Districts
Other Tools
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1
Sales Tax Sharing
Special Assessments
Infrastructure Bonding
Vision | Economics | Strategy | Finance | Implementation
1. The Stimulus and Development
Not your Grandfather’s Keynesian Economics
Several Major Initiatives
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Troubled Assets Relief Program (TARP)
Housing and Economic Recovery Act of 2008 (HERA)
Heartland Disaster Tax Relief Act of 2008
American Recovery and Reinvestment Act (ARRA)
Special Katrina Provisions Holding Over
Pending: Transportation Reauthorization Bill
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Push for Integration of Land Use/Transportation Decisions
Confluence of Infrastructure/Land Use/Environment
Vision | Economics | Strategy | Finance | Implementation
Stimulus, Cont’d
Tax-exempt Bonds
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Recovery Zone/Empowerment Zone
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Economic Development Bonds ($10 Billion)
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Facility Bonds ($15 Billion) Tax Exempt Private Activity Bonds
Heartland Disaster Tax Relief Act of 2008 (Arkansas, Illinois,
Iowa, Indiana, Missouri, Nebraska and Wisconsin Counties)
$14.1 Billion
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Taxable
Federal Reimbursement to County/Muni of 45% of Interest Paid
Multi-family Rental Housing
Public Utility Property
Mortgage Financing
Commercial Development Broadly
Vision | Economics | Strategy | Finance | Implementation
Stimulus, Cont’d
Highways and Bridges
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29 Billion
Airport Improvements
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$1.3 Billion
Mostly FAA, Safety Improvements
Brownfields and Environment
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$100 Million for Clean-Up Grants; $600 Million Superfund Sites
Part of Broader $10 Billion Environmental Infrastructure
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Clean Water
Superfund
Watershed and Flood Prevention
Vision | Economics | Strategy | Finance | Implementation
Stimulus, Cont’d
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Other Public Works including
Army Corps and Public
Buildings
Transit
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Intercity Rail
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$8.4 Billion including New
Starts/TOD Opportunities
$9.3 Billion, $8 Billion of
Which Is for High-Speed Rail
School Funds
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5
Including Modernization
Vision | Economics | Strategy | Finance | Implementation
Stimulus, Cont’d
Additional New Markets Tax Credits (NMTC)
Authorization
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$3 Billion, ½ Added to Each of ’08 and ’09
Two-year Total: $10 Billion
Housing Provisions
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Additional $.20 per Capita LIHTC
Treasury Exchange Window for LIHTC at $.85
$2.25 B Home Funds for LIHTC Project Gaps
$1 B Additional CDBG
$2 B Additional Section 8 Funding for Rehab
$2 B Additional Neighborhood Stabilization
Vision | Economics | Strategy | Finance | Implementation
2. New Markets Tax Credits
The New-New Thing
New Markets Tax Credits
Support Commercial and
Industrial Development in
Qualifying Areas
Increases Access to and/or
Lowers Cost of Capital
Supplements TIF, EZ and
Other Funds
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7
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NMTC: A Tax Credit for
Equity Investments in CDEs
Community Development
Entities (CDEs): Mission to
Serve Low-income
Communities
Low-Income Communities
(LICs): 20% Poverty or
Where Median Family
Income Is Below 80% of AMI
Vision | Economics | Strategy | Finance | Implementation
New Markets Tax Credits, Cont’d
Created in 2000 as part of Community Renewal Tax
Relief Act
Companion program to Low Income Housing Tax
Credit
Administered by CDFI Fund division of U.S. Treasury
Primarily support industrial, community facility, and
commercial development in qualifying Census tracts
Can also support direct loans/equity investments to
operating businesses
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8
Vision | Economics | Strategy | Finance | Implementation
New Markets Tax Credits, Cont’d
7-year stream of federal income tax credit benefits
triggered by the flow of debt or equity capital through a
“CDE”
Increase access to and/or lower cost of capital (e.g., lower
interest rates, partial loan forgiveness, etc.)
Awarded on a competitive national basis to CDEs
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9
Vision | Economics | Strategy | Finance | Implementation
Federal Authorization
2001-02
$2.5 billion
2003-04
$3.5 billion
2005
$2 billion
2006
$3.5 billion
2007
$3.5 billion
2008
$3.5 billion *
2009
$3.5 billion *
*Additional Approved Allocation for 2008 and 2009
per Stimulus Bill: $3 billion for $5 billion total each year
10
Vision | Economics | Strategy | Finance | Implementation
New Markets Tax Credits, Cont’d
CDFI Fund
(U.S. Treasury)
Allocation of NMTCs
QEI
Private
Investors
7-year
Stream of
NMTC
Benefits
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Community
Development
Entity
(CDE)
QLICI
Qualifying
Project/Business
(QALICB)
Vision | Economics | Strategy | Finance | Implementation
What is a CDE?
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Community Development Entity, certified by CDFI Fund
(division of U.S. Treasury)
Domestic corporation or partnership
 For-profit or non-profit
 Controlled by private, non-profit, or government
organizations
Intermediary vehicle for the provision of loans or other
investments in “Low-Income Communities” (LICs)
CDEs are required to demonstrate that they:
 Have a primary mission of serving LICs and/or Low-Income
Persons
 Are accountable to residents of the LICs that they serve
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Vision | Economics | Strategy | Finance | Implementation
Areas of Eligibility in
City of Chicago
13
Vision | Economics | Strategy | Finance | Implementation
New Markets Tax Credits, Cont’d
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CDEs Use Investments to Make “Qualified LowIncome Community Investments” (QLICIs)
QLICIs include:
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Capital or Equity Investment in, or Loan to, any “Qualified Active LowIncome Community Business” (QALICB)
Equity Investment in, or Loan to, any CDE
Purchase of a Loan from Another CDE
Financial Counseling and Other Services to Businesses Located in LICs
Vision | Economics | Strategy | Finance | Implementation
What Is the Tax Credit Benefit?
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For investment (QEI) of $1.00, investor would
receive a seven-year federal income tax credit of:
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
$0.05 $0.05 $0.05 $0.06 $0.06 $0.06 $0.06
TOTAL VALUE OVER 7 YEARS
= $0.39
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Up-Front Discounted Value: Generally $0.25 to $0.30
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Above Example Consumes $1 of “Allocation”
15
Vision | Economics | Strategy | Finance | Implementation
Allowable Uses of NMTC Financing
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Must be provided to a Qualified Active Low-Income
Community Business (QALICB)
Debt, equity, or “hybrid” financings
Commercial, industrial, institutional, not-for-profit
projects
For-sale housing (challenging timing issues)
Mixed-use project (provided rental housing is <80%
of income stream)
Operating businesses
16
Vision | Economics | Strategy | Finance | Implementation
Qualified Low-Income Community
Investments (QLICIs)
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Capital provided by a CDE to a “Qualified Active LowIncome Community Business” (QALICB or “Qualifying
Project”)
Generally have term of 7 years
Debt or equity with better-than-market terms
Potential for partial forgiveness by CDE at end of Year 7
17
Vision | Economics | Strategy | Finance | Implementation
Who has NMTC Allocations?
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Competitively allocated at federal level
Strong competition for the credit – demand exceeds
supply by about 10 to 1
In 2008 round, 239 CDEs applied for credits and 70
received an allocation
Average allocation award per CDE is $50 million
Banks are the dominant recipients of credit to date
City and state agencies
Non-profits
18
Vision | Economics | Strategy | Finance | Implementation
NMTC Investors
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Type of Investors:
 Banks/Financial Institutions (e.g., US Bank,
JPMorgan Chase, Capmark, Bank of America)
 Corporations (e.g., Target)
With proper structuring, Investor can also play other
roles in the transaction (lender, CDE, borrower)
Credit begins to flow when investor makes the
Qualified Equity Investment (QEI)
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Vision | Economics | Strategy | Finance | Implementation
Allocatees Nationally
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115 Community Development Entities (CDEs)
currently have NMTC allocations according to the
Community Development Finance Institutions (CDFI)
Fund
20
Vision | Economics | Strategy | Finance | Implementation
Allocatees Serving Illinois
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Chicago Development Fund
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Citibank NMTC Corporation
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HEDC New Markets, Inc
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Hospitality Fund, II LLC
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Local Initiatives Support Corporation
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M&I New Markets Fund, LLC
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National City New Market Fund, Inc
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Urban Research Park CDE, LLC
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Chase New Markets Corporation
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Fifth Third New Markets Development Company LLC
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Gateway CDE LLC
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Related Community Development Group, LLC
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Urban Development Fund, LLC
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USBCDE, LLC
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Vision | Economics | Strategy | Finance | Implementation
How Deals are Assembled
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Project Sponsor identifies a CDE (or Investor) and submits
project proposal
CDEs have differing geographic service areas and targeted
project types
CDE typically will assist in identifying the Investor or vice versa
Possible to have multiple CDEs for larger projects, but it will
drive up transaction costs
Find out CDE and Investor fees up-front. Average fees for
2008 allocatees were 6.75% for for-profit allocatees and 7.25%
for non-profit allocatees
Expect Investors to be looking for IRR at 7-9% on non-profit
deals and 8.5-10% on for-profit deals
$4MM or larger transactions with high community impact are
most attractive to CDEs and Investors
22
Vision | Economics | Strategy | Finance | Implementation
Imperial Zinc
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Applicant : Manufacturer of
zinc anodes and alloys
Project: 80,000-squarefoot production facility to
replace building destroyed
by fire in March 2008.
Project will allow for
expansion into two new
product lines.
Location: 103rd Street &
Woodlawn Avenue,
Pullman Community Area
23
Vision | Economics | Strategy | Finance | Implementation
Sample $10 Million Deal
Lender
Interest-Only Debt Service
w/Balloon In Year 7
7-Year Loan at Conventional Market
Terms ($7-$7.5MM)
Cash Up-Front
($2.5-$3MM)
NMTC
Investor
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Tax Credit Benefits
($3.9 MM over 7 Yrs)
7-Year Mini-Perm Loan
@ Low Blended Rate
($9.5MM)
QALICB
(Project)
CDE
$500k in CDE fees and
other transaction costs
(placeholder amt)
Sinking Fund
for
Loan Repayment
Vision | Economics | Strategy | Finance | Implementation
Year 7
Lender
Principal Repayment
($7-$7.5MM)
Principal Repayment
($7-$7.5MM)
QALICB
(Project)
CDE
NMTC
Investor
Remaining $2-$2.5MM
can be forgiven or
restructured
Return on and of capital
provided via tax credits
25
Vision | Economics | Strategy | Finance | Implementation
CSTLC/Homan
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Henry Ford Learning Institute
Charter high school at Homan
Square in Lawndale
$41 million project with $22
million of NMTC allocation
LEED Gold
Historic rehab
450-500 students
NMTCs used to make lowinterest forgivable loans
26
Vision | Economics | Strategy | Finance | Implementation
Sample “Non-Economic” Deal
Charitable
Donations
$5MM Loan
QLICI
Government
Grant
$2MM
Loan
Investment $10MM
Fund
QEI
CDE
Nominal Interest
Loan
($9.5MM)
QALICB
(Project)
$3MM
Equity
NMTC
Investor
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Tax Credit Benefits
($3.9 MM over 7 Yrs)
•$500k in CDE fees and
other transaction costs
(placeholder amt)
Vision | Economics | Strategy | Finance | Implementation
Year 7 Unwind
Charitable
Donations
Government
Grant
No
Repayment
Needed- Loans Can be
Forgiven
CDE
Loan Can be
Forgiven
($9.5MM)
QALICB
(Project)
NMTC
Investor
Return on and of capital
provided via tax credits
28
Vision | Economics | Strategy | Finance | Implementation
NMTC Structure with For-Sale Housing
Lender
Construction
Loan
Disbursements
7-Year Loan
($7MM)
$3MM
Equity
Investment
NMTC
Investor
Investment
Fund
$10MM
QEI
CDE
$9.5MM
Revolver
Principal Payments
w/Sales Proceeds
Tax Credit Benefits
($3.9 MM over 7 Yrs)
Construction
Home
Builder
(QALICB)
Sales
Proceeds
Home
In
QCT
Home
In
QCT
•Principal must stay at CDE level or below for 7-year NMTC compliance period
•CDE must re-deploy repaid principal within 1 year
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Vision | Economics | Strategy | Finance | Implementation
Use of Condo Structure to Combine
LIHTC & NMTC
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With careful structuring, can create mixed-use building
with an NMTC-financed transaction:
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NMTC-financed commercial/community facility transaction on
lower floors
LIHTC-financed affordable rental transaction on upper floors
Requires division of ownership between the two deals
within the same building
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Vision | Economics | Strategy | Finance | Implementation
States May Create Piggy-Back Credits:
Example -- New Illinois NMTC
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Limit allocations to amount that will result in max of $10M of tax credits in
any fiscal year
Follows Federal program with a couple of exceptions:
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Excludes businesses that derive 15% or more of annual revenue from rental or for-sale real
estate (carve-out for sponsor lease so long as sponsor passes test)
7-year credit percentages are different split
QEI can be debt or equity
Max QLICI to any one entity and its affiliates is $10MM
Small and shallow state credit
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
$0.00
$0.00
$0.07
$0.08
$0.08
$0.08
$0.08
TOTAL VALUE OVER 7 YEARS = $0.39
QEI for federal purposes can also be considered QEI
for state NMTC purposes
31
Vision | Economics | Strategy | Finance | Implementation
3. Low Income Housing Tax Credits
The Workhorse
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Created in 1986
Credits Allocated to States Per
Capita
Allocated Using QAP to
Developers
9% (+/-) of Eligible Basis for 10
Years
Sold to Investors $.70 to $.90
4% Option With Bonds
30 Year Restriction to Low
Income
32
Vision | Economics | Strategy | Finance | Implementation
Lasagna Financing
Tax Credits (assuming 9%
credits) typically are between
60% and 70% of total
development costs. The 60 70% swing ultimately depends
on credit pricing and/or if the
applicant gets the full amount
of credits requested. First
mortgages are typically 10% of
TDC or less. The rest could
be just about anything.
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Assuming a $20M deal:
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LIHTC Yield
Home Funds
First Mortgage
Other Soft $
TIF
$13M
$2M
$1.5M
$2M
$1.5M
Vision | Economics | Strategy | Finance | Implementation
The Process
Application
Issues
State Housing Agencies
 Developer Compensation is
Upfront with Limited
 Qualified Allocation Plan
Ongoing Cash Flow
 Competitive Process
 Bank and Corporate Buyers
 Multiple Financing Sources
Out of Market
 Local Support
 Stimulus Provides Treasury
 Site Control
Window and Added Gap
Significant upfront effort to
The Program for New
prepare competitive application
Affordable Housing Will
Increase in Importance
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34
Vision | Economics | Strategy | Finance | Implementation
4. The Local Tool Kit
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Tax Incremental Financing
Business Improvement Districts
Other Tools
 Sales Tax Sharing
 Special Assessments
 Infrastructure Bonding
35
Vision | Economics | Strategy | Finance | Implementation
Tax Incremental Financing
36
Vision | Economics | Strategy | Finance | Implementation
TIF in Virtually All States
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TIF exists in 49 states and
Washington D.C.
Only Arizona does not
have TIF legislation
TIF, TAD, RAD, TIRZ…
Vision | Economics | Strategy | Finance | Implementation
But the Midwest is the Leader…
38
Vision | Economics | Strategy | Finance | Implementation
Tax Incremental Financing , Cont’d
Criteria Vary by State
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1.5-Acre Minimum (IL)
Blight and Conservation Factors
But For…
Industrial and Special Vacant Land
Factors
Maximum Length of District
Usual Factors
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50% over 35 years
Deterioration
Dilapidation
Excessive Vacancy
Lack of Growth of EAV
Environmental Contamination
Deleterious Land Use or Layout
Obsolescence
Code
Others
Vision | Economics | Strategy | Finance | Implementation
Uses of TIF Funds: Vary by State
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Property Assembly/Site
Preparation/Remediation or
Capping of Contaminated Soils
Relocation
Rehabilitation, Reconstruction,
Repair, or Remodeling of Existing
Structures
Low-income Housing
Construction
Public Works or Improvements
(Including Parking Facilities)
Interest Subsidy
Studies, Surveys, Planning, Legal,
Consulting, and Administration
Job Training/Welfare to Work
Day Care
40
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Financing Costs
Taxing Districts’ Capital Costs
Payment in Lieu of Taxes
School and Library Costs
Park Improvements
Hiking and Biking Trails
Pedestrian Pathways and Bridges
Facilitating Intermodal
Transportation
Pedestrian Platforms at Transit
Stations
Public Golf Courses and Buildings
Hospitals
Community Colleges
Convention Centers
Vision | Economics | Strategy | Finance | Implementation
Range of TIF Projects
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Manpower
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Bryn Mawr/Belle Shore
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Block 37/Lowes Hotel
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Uptown at Park Ridge
41
Vision | Economics | Strategy | Finance | Implementation
Deal Criteria and Process
Criteria
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District creation varies
Financing gap
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Formal application
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Extraordinary costs
Weak market
High risk
Competitive locations
Project increment vs.
District increment
Leverage
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Process
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Market
Gap Analysis
Increment Projections
Ownership Review
Underwriting of pro forma
Public review
Review of parties
Vision | Economics | Strategy | Finance | Implementation
Structure and Funding
Structure
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Grants
Junior Mortgage Loans
Clawbacks
Cessation of Payments
Funding Methods
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Front Funding from
Balances
Alternate Revenue Bonds
(G.O. Backed)
Special Revenue Bonds
Developer Notes
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43
Sold at Discount
Held
Annual Payments
Vision | Economics | Strategy | Finance | Implementation
44
Vision | Economics | Strategy | Finance | Implementation
Business Improvement Districts
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Special Districts Providing
Special Services or
Infrastructure
Additional Tax Results in
Complex Approvals
Both Urban and Greenfield
A Rose by Any Other
Name….
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45
Business Improvement Districts
Business Development Districts
Special Service Areas
Community Improvement
District
Vision | Economics | Strategy | Finance | Implementation
BIDs and Their Cousins
Parameters
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Designated Sub-area of
Community
Additional Tax to Pay for Facilities
or Services beyond Usual
Downtown District Improvements
& Marketing
Greenfield Infrastructure
Back-up for Owner’s Associations
51% of Owners & Electors Can
Block
46
Issues and Concerns
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Tax Rates (Commercial Districts:
.5% To 1.0% Typical)
Shifting Infrastructure Costs –
Windfall Profits?
Subsequent Owner Disclosure
Equity Issues
But Can Be Useful
Vision | Economics | Strategy | Finance | Implementation
Two Broad Uses
Business Districts
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Special Streetscape and Lighting
Marketing and Promotions
Security/Concierge
Additional Cleaning and Snow
Removal
Special Events
Festivals
Small Tax Rate (1%)
47
Greenfield Infrastructure
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Streets, Water, and Sewer
Stormwater facilities
Parks and Open Space
Improvements
Other Typical Subdivision
Improvements Dedicated or
Granted to Public
Substantial Tax Rate (May be ½ up
to Equal Other Property Tax)
Vision | Economics | Strategy | Finance | Implementation
Back-up for Property Owner
Associations
Obligations
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Maintain public
infrastructure
Maintain open space
Maintain stormwater
facilities
Other responsibilities in
which there is a public
right or responsibility
assumed by POA
48
Reasons for Failure
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Disagreement
Economic distress of
members
Refusal of some to pay
Allows Public Sector to
Step In and Levy Tax to
Pay for Missed Obligation
Vision | Economics | Strategy | Finance | Implementation
Other Examples

New York City: 60 BIDs; $80 Million

Alliance for Downtown New York
 Serves the Wall Street financial district; provides supplemental security and sanitation; economic
development; streetscape, design and transportation services
Center City District in Philadelphia
 Encompasses 120 blocks and more than 4,500 individual properties; provides sidewalk cleaning,
graffiti removal, landscape maintenance, crime prevention, and advertising and promotion
Downtown D.C.
 Approximately 140 blocks and 825 properties; provides services for hospitality, safety,
maintenance, public space programming, streetscape, homeless services, and so on
Hollywood Entertainment District
 Spans an18-block stretch of Hollywood Boulevard and is funded by 225 property owners;
provides security, cleaning, and marketing services
Historic Third Ward Association in Milwaukee
 Includes over 350 business and 400 residences; focused on converting various manufacturing
and warehousing structures into commercial and residential uses
Downtown BID in Grand Rapids
 Located in the Heart of Downtown Grand Rapids; focuses on maintenance and beautification,
business development, event programming, and marketing
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Vision | Economics | Strategy | Finance | Implementation
Other Variants
Business Development
District
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Missouri and Illinois
Blighted Areas
Additional Taxes in Area
Only
Differing Revenue Sources
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An Interest in Land (MI)
Ad Valorem Tax (IL and
Others)
Hotel Tax
Sales Tax
If it is a property tax, it is likely
to be deductible from Federal
Income Tax
50
Vision | Economics | Strategy | Finance | Implementation
Other Tools: Sales Tax Sharing
Parameters
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Available in Some States
Where a Portion of Sales
Tax Returned to Point of
Origin
Compete for STGs
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51
Auto Dealers
Shopping Centers
Large Appliance/Electronic
Stores
Big-box Stores
Form of Rebate
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Share of Increase
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Sometimes Net Impact on
Other Stores
Time Limits
Dollar Limits
Sometimes Linked to
Extraordinary Costs
Often Linked to Major
Investment
Vision | Economics | Strategy | Finance | Implementation
Sales Tax Sharing, Cont’d
Sales Tax Sharing
Assumptions
Inflation
Sales Tax Rate
NPV Discount Rate
Occupancy Factor for Non-Anchors
3.0%
1.0%
10.0%
90.0%
Sales Generation
Big-box-anchored
380,000 S.F. Shopping
Center
Developer Requested
Approximately $5.8
Million in Municipal
Assistance
Recovery Period for
Sharing % Scenarios
100% 8 Years
75% 11 Years
50% 21 Years
52
Sales psf
Sales Area
Anchor 1 [1]
$
422.00
203,091
Anchor 2 [1]
$
268.00
88,248
Non-Anchor [2]
$
195.00
71,022
Pads [2]
$
195.00
20,000
[1] Based on annual reports.
[2] Based on Dollars and Cents of Shopping Centers .
Year
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
Anchor 1
Sales [1]
57,136,268
85,704,402
88,275,534
90,923,800
93,651,514
96,461,060
99,354,891
102,335,538
105,405,604
108,567,772
111,824,805
115,179,550
118,634,936
122,193,984
125,859,804
129,635,598
133,524,666
137,530,406
141,656,318
145,906,007
150,283,188
154,791,683
159,435,434
164,218,497
Anchor 2
Sales [1]
15,766,976
23,650,464
24,359,978
25,090,777
25,843,501
26,618,806
27,417,370
28,239,891
29,087,088
29,959,700
30,858,491
31,784,246
32,737,773
33,719,907
34,731,504
35,773,449
36,846,652
37,952,052
39,090,613
40,263,332
41,471,232
42,715,369
43,996,830
45,316,735
Non-Anchor
Sales [2]
6,232,181
9,348,271
12,464,361
12,838,292
13,223,441
13,620,144
14,028,748
14,449,611
14,883,099
15,329,592
15,789,480
16,263,164
16,751,059
17,253,591
17,771,198
18,304,334
18,853,464
19,419,068
20,001,640
20,601,690
21,219,740
21,856,332
22,512,022
23,187,383
Pads
Total
Sales [2]
Sales
1,755,000
80,890,425
2,632,500
121,335,637
3,510,000
128,609,873
3,615,300
132,468,169
3,723,759
136,442,214
3,835,472
140,535,481
3,950,536
144,751,545
4,069,052
149,094,091
4,191,124
153,566,914
4,316,857
158,173,922
4,446,363
162,919,139
4,579,754
167,806,713
4,717,146
172,840,915
4,858,661
178,026,142
5,004,421
183,366,927
5,154,553
188,867,934
5,309,190
194,533,972
5,468,466
200,369,992
5,632,520
206,381,091
5,801,495
212,572,524
5,975,540
218,949,700
6,154,806
225,518,191
6,339,450
232,283,736
6,529,634
239,252,249
TOTAL
2005-2029
NPV
2005-2029
PV @ 10%
2005-
100%
Sales Tax
808,904
1,213,356
1,286,099
1,324,682
1,364,422
1,405,355
1,447,515
1,490,941
1,535,669
1,581,739
1,629,191
1,678,067
1,728,409
1,780,261
1,833,669
1,888,679
1,945,340
2,003,700
2,063,811
2,125,725
2,189,497
2,255,182
2,322,837
2,392,522
41,295,575
12,134,702
6,080,005
75%
Sharing
606,678
910,017
964,574
993,511
1,023,317
1,054,016
1,085,637
1,118,206
1,151,752
1,186,304
1,221,894
1,258,550
1,296,307
1,335,196
1,375,252
1,416,510
1,459,005
1,502,775
1,547,858
1,594,294
1,642,123
1,691,386
1,742,128
1,794,392
30,971,681
9,101,027
5,809,180
50%
Sharing
404,452
606,678
643,049
662,341
682,211
702,677
723,758
745,470
767,835
790,870
814,596
839,034
864,205
890,131
916,835
944,340
972,670
1,001,850
1,031,905
1,062,863
1,094,748
1,127,591
1,161,419
1,196,261
20,647,787
6,067,351
5,713,100
Note: Shaded portions of columns represent recovery period.
[1] Anchors phased in at 67% in first year of operations, 100% in second year of operations.
[2] Non-Anchors phased in at 50% in first year of operations, 75% in second year of operation, 100% in third year of operations.
Vision | Economics | Strategy | Finance | Implementation
Other Infrastructure Tools
Special Assessments







Traditional Tool
Assessment Based on
Benefit
Court Process in IL
Key Role for Appraisers
Methods Vary –
Historically Lineal
Lien on Property
Not Tax Deductible
53
Infrastructure Bonding



Omnibus Approach
Special Sales Tax in IL;
Likely Variants Elsewhere
Can be Combined




Developer Payments
Impact Fees
SSA Type Vehicles
Recapture Agreements
Vision | Economics | Strategy | Finance | Implementation
In Closing…





Stimulus Should Provide Opportunities and Turnaround
Public Project Opportunities Accelerated
A Complex Tool Kit
To Close Gaps
Through Public-Private Partnerships
54
Vision | Economics | Strategy | Finance | Implementation







Real Estate Economics
Public-Private Partnerships
Developer Solicitation
Development Management
Public Financing
Area Plans & Implementation
Fiscal & Economic Impact
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Chicago, IL 60601
(312) 424-4250
www.friedmanco.com
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Vision | Economics | Strategy | Finance | Implementation