tools of rural economic development finance. underwriting – art and science usually requires...
TRANSCRIPT
TOOLS OF RURAL ECONOMIC DEVELOPMENT FINANCE
Underwriting – Art and Science
Usually requires flexibility on collateral often unconventional. Yet funding sources may require more/different type
Hardly ever just one funding source; This requires knowing your partners and knowing what they can and can not do
Work outside the numbers – “Momma said that’s where the fun is” - Bruce Springsteen
Always capture the story
The usual acronyms….
SBAUSDA
RBEGIRP
SSBCI
CDBG
OCSRMAP
B & I
LIHTC
NMTC
HTC
REAP
CDFI
Funding sources….
Put ‘em all together and it spellsECONOMIC DEVELOPMENT !!
EIEIO…
Mayo Mill in Dover-Foxcroft, ME This project has it all – local, state, federal, bank, CDFI
and private equity funds 11 Sources of funding. Kids, don’t try this at home….
•Transformational project for the community•Great example and demonstration of the principles of community development and economic impact
Transformation to the 21st Century Mixed Use residential/commercial
•$12.3MM TDC•$10.9MM Construction cost•$1.0MM perm loan
•Geothermal heating/cooling•Hydro generation of all electricity•22 loft style apts.•8 commercial tenants•Key node of broadband fiber in this part of Maine•Historic Credits and Energy Credits•Largest non-industrial project in rural west/central Maine in years
Restored bell tower
58,000 sq. ft
Know your farmer.Know your power?
This dam provides all the power for the mill tenants
View from 3rd floor apartment
The Deal
USDA funds - RBEG program EPA – REAP grant, RLF soft loans Northern Border Commission – infrastructure EDA – the broadband expansion Federal and State historic rehab credits –
constr. CDBG – infrastructure TIF – local community loan fund for constr. CEI Construction loan – all the other stuff
