Going Beyond Traditional Public Private Partnerships To Promote Community Development

Going Beyond Traditional Public Private Partnerships To Promote Community Development

Who is NDC and What Do We Do? Oldest national non-profit community development organization in the United States. Mission: increase the flow of capital to underserved urban and rural areas for job creation and community development Core services: Development Based Technical Assistance Small Business Credit Equity for Community, Economic and Housing Development Project Low Income Housing Tax Credits Rehabilitation Tax Credit New Markets Tax Credits Financing/Developing Public Facilities Economic and Housing Development Finance Training Economic Development Policy Advocacy www.nationaldevelopmentcouncil.org

What Comes to Mind When We Think of a P3 Project?

Or This?

Most Likely Not This

Public Private Partnerships: A New Resource for Community Development New Partnerships are emerging that include the Private Sector, Government, Govt. Sponsored Financing Vehicles and Non-Government Organizations (501(c) (3)) combing to fund both the public and private portions of a community economic development project.

The NGO/Not-For-Profit Partner Must have A specific and relevant mission AND Experience and achievements AND Knowledge of public sector requirements AND Knowledge of private sector processes including development and asset management AND Understanding of bond compliance AND Commitment to return benefit back to public sector AND Commitment to accountability and transparency AND Structure: single-asset, bankruptcy-remote entity

What an Experienced Not-For-Profit Partner Can Provide Access to Government sponsored loans and grants Access to equity derived from federal and state tax-credit programs Public infrastructure and public facilities financing with501(c)(3), or similar Revenue Bonds Small Business Loans Innovative financial structuring A mission driven approach to project financing

Partnerships Help Both Large and Small Scale Projects Close Financing Gaps Partnerships with not-for-profit entities can provide: Real Estate and public/private financing technical assistance Access to debt Capital Markets Tax Exempt and Taxable Public sector lending and guarantee programs HUD 108; SBA; USDA; EDA; HUD Access to equity LIHTC, HPTC, NMTC, State and local credits Help communities achieve their development goals.

NDC Housing and Economic Development Corporation (HEDC) The National Development Council s 501 (c)(3) finance and development affiliate National footprint Unique organizational structure Group Exemption Debt and Equity Financing $6 billion in project financing and development

Where Has This Approach Been Successful? Ithaca, New York Development strategy: Bring major regional economic player, Cornell University downtown Scope and Scale of multi-project development outside capabilities of City

The Public Private Partnership The National Development Council NDC Housing and Economic Development Corporation Cornell University The City of Ithaca The Ithaca Urban Renewal Agency Ciminelli Development Bloomfield/Schon + Partners

Ithaca, New York Step 1 Municipal parking identified by University as a prerequisite for a downtown presence NDC provided its knowledge of public financing and experience with private development to use 501(C)(3) bonds to build the parking garage

Ithaca, New York Cayuga Green Parking Garage 679 spaces $19,305,000 501 (c)(3) Bonds

Ithaca, New York Step 2 Moving Cornell University downtown by providing Class A office space for the University, along with a new Hilton Garden Inn

Ithaca, New York o o o o o o o o Ciminelli Development Cascade Partners 85,000 S.F. commercial/retail Hilton Garden Inn Conventional Debt New Markets Tax Credits Developer Equity Above Market Rate Cornell Lease

Ithaca, New York Step 3 Promote Additional Development: Cayuga Place 34,000 S.F. Retail 12,000 S.F. 5 Screen Theater 68 Residential Rental Units 45 Condominiums Transportation HUB

Ithaca, New York Bloomfield/Schon + Partners Cayuga Place Mixed Use Private Debt New Markets Tax Credit Equity Urban Renewal Land

Ithaca, New York

Ithaca, New York Final Phase Condominium Residences Attached to Cayuga Green Garage Completes Long Standing Redevelopment Plan

Results Cornell University made an investment in the community and moved its Development Office downtown The City received a municipal parking garage without taking development risk or increasing its General Obligation Debt The City now has Class A office space, additional retail and commercial development, new market rate housing a theater and hotel and conference space downtown

Bottom Lines NGO partners bring a unique solution to development challenges NGO partnerships preserve and protect the public interest, with accountability and transparency NGO partnerships give communities access to financial resources they would not otherwise have.

Contact Information National Development Council Daniel Marsh III 708 Third Ave., Suite 710 New York, NY (212) 682-1106 o (917) 559-6188 m www.nationaldevelopmentcouncil.org dmarsh@nationaldevelopmentcouncil.org