Managing Economic Development Organizations

Dynamic Growing Economy

Technology, Innovation

Investment 

Housing 

Infrastructure,Transportation

Education

Balanced Growth

 240,000 250,000 260,000 270,000 280,000 290,000 300,000

2009 2010 2011 2012

GDP Atlanta MSA

Jobs and Competitiveness

Source: BEA

Reality Check: Economic Cycle

3Business-cycle-graph better.jpgimagesndibeconomics.wikispaces.com.

Reality Check: Business Life Cycle

4

SBA estimates that the average life cycle of a business is 7 years

Cycle of Economic Development

5

Reality Check: Economic Development Efforts

6

According to the US Census Bureau, this is the number of Cities in 2013

Economic Development Strategies/ Organization

7

Retention

Expansion

Attraction

Creation

Economic Development

Organizational Structure

Housing Finance Business Development Redevelopment

Legal Finance

8

Business Development

Business Development Goals

Clusters of FocusAttraction EffortsRetention/Expansion ProgramsEntrepreneurship ProgramsResults

Atlanta is particularly attractive to firms in six key sectors Economic development efforts should focus on growing:

1. Digital arts and new media production

2. Life sciences

3. Applied computational processing and engineering

4. Corporate headquarters and professional and management services 

5. Advanced logistics

6. Conventions and tourism

• Motion picture production• Software and computer programming• Audio production• Broadcasting

Digital arts and new media production

Life sciences• Medical devices• Biological products• Medical laboratories• Biotechnology R&D• Pharmaceuticals 

Conventions and tourism• Hospitality• Attractions and conferences• Food and beverage• Transportation

• Engineering services• Computer systems design services• Scientific R&D• Advanced manufacturing• Financial technology• Health information technology

Applied computational processing and engineering

Corporate headquarters and professional and management services

• Headquarters and back office• Management consulting

Advanced logistics

• Freight air transportation• Distribution and logistics consulting 

services

PROGRAMS FOR BUSINESSATTRACTION

• Site Selection Assistance• Foreign Direct Investment

• Economic Opportunity Fund• Lease Purchase Bonds• 501c3 Revenue Bonds• Small Business Loans

14

Business Outreach & Contact

Interview, Survey & Assessment

Recommendations and Referrals Action Planning Follow up and

ReviewAssess and Report Economic Impact

BUSINESS RETENTION & EXPANSION PROGRAM OVERVIEW

Operates as IA’s Business Customer Service Program

15

Objectives

Entrepreneur

Educate

AdvocateMeasure

* Requirement Analysis* Idea Generation* Idea Evaluation* Project Planning 

* Construction* Prototype Development* Pilot Application* Testing 

* Production* Market Launch and Penetration (national/international)

3 Phases of a Simplified Innovation Process

17

Conception Implementation Marketing

City of Atlanta Innovation Center:Demonstration Project

Goals:• Create new markets and new jobs • Support existing local innovators and Entrepreneurs• Improve quality and efficiency of City services and operations• Advance the City’s Sustainable Initiatives and economic development strategy• Position Atlanta as a location for cutting edge innovation• Retain entrepreneurs in the City of Atlanta• Attract and maintain investments as a result of new innovations• Create a collaborative community of relationships between government and

entrepreneurs

18

City of Atlanta Innovation Center:Startup Atlanta Ordinance

DESCRIPTION: An ordinance to amend the Occupation Tax Ordinance to provide a tax exemption for new and emerging technology businesses.

GOALS:1. Job Creation2. Retention of entrepreneurs 3. Encourage investment in certain types of businesses in fields related to high

technology, life sciences, information technology and intellectual property4. Catalyze Atlanta’s entrepreneurial ecosystem 5. Position Atlanta as a location for cutting edge innovative companies

19

$738,593,674

$1,775,431,503

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

$2,000,000,000

2012 2013

Business Development Economic Impact

For this 3 year period, for every $1 invested the City received over $9 in local taxes

Return on an Economic Development Services Investment

2011-2013

$6,750,000

$260,800,000

$65,800,000

$141,550,000

$2,000,000$25,000,000 $15,500,000

$473,280,000

$0$50,000,000$100,000,000$150,000,000$200,000,000$250,000,000$300,000,000$350,000,000$400,000,000$450,000,000$500,000,000

Digital Arts andMedia

Production

Life Sciences AppliedComputationalProcessing andEngineering

CorporateHeadquarters

and ProfessionalServices

AdvancedLogistics

Conventions andTourism

AdvancedManufacturing

Other

2011‐2013 Investment Per Industry

Digital Arts and Media 

Production10%

Life Sciences7%

Applied Computational Processing and Engineering

29%Corporate 

Headquarters and 

Professional Services26%

Advanced Logistics

2%

Conventions and Tourism

9%

Advanced Manufacturing

7%

Other10%

2011‐2013Wins Per Industry

Digital Arts and Media 

Production, 580

Life Sciences, 1060

Applied Computational Processing and 

Engineering, 2521

Corporate Headquarters and 

Professional Services, 1237

Advanced Logistics, 25

Conventions and Tourism, 347

Advanced Manufacturing, 

177

Other, 352

2011‐2013Jobs Per Industry

Business Attraction60 companies have relocated to the City of Atlanta occupying over

8.6M square feet of real estate space

4

EOF GRANT Carter’s/Oshkosh

Phipps Tower-3438 Peachtree Road

• The City of Atlanta offered $350,000 from the economic opportunity fund (EOF Grant) for this competitive project to expand in the City of Atlanta.

• The company agreed to hire 200 jobs at an average annual wage of $88,000.

• The project’s capital investment was $30M. • The company absorbed 80K sf of class” A” office space.

LEASE PROJECT Novare Project

SkyHouse 100 6th Street

• $63,280,000 Lease Purchase Revenue Bond to Finance a Proposed Residential and Retail Project

• Approximately $500,000 increase in property tax • Workforce Housing Component• 100 construction jobs and 70-90 permanent jobs• Estimated Tax Savings is $3,093,031 within 10

years

SMALL BUSINESS LOAN PROGRAM

• From 2001-2012, Invest Atlanta has closed 117 loans representing $8,194,069 and leveraging $32,582,163

• Businesses in many sectors have been financed • Companies Include: Pencil Factory, White Oak Kitchen, Integrated

Capital Partners, Like A River Salon and Spa, Utopia Trading Inc.

RedevelopmentDepartment

Programs for Revitalizing Specific Atlanta Areas

Programs and Initiatives

• Tax Allocation Districts (TADs)– Community Improvement Fund– Downtown Façade Improvement Grant Program

• New Markets Tax Credits (NMTC)– Atlanta Seed Equity Initiative

• EB-5 Foreign Direct Investment Program (currently in the application process)

City of Atlanta TADs

• 10 Tax Allocation Districts

• To date, approximately $560 million in TAD bonds have provided gap financing for over $3.4 billion in private development

• Assessed property values in TADs have grown 20% since 1998 while City of Atlanta has grown at 5%

• Incentivize development in blighted and underdeveloped areas of City

Westside TAD

• Established in 1992, expanded in 1998 to leverage momentum from 1996 Olympics to redevelop Downtown

– Connect neighborhood assets– Create live-work-play community

surrounding Centennial Olympic Park– Redevelop blighted residential

neighborhoods west of Downtown

• 3 bond issues totaling: $161.3 million

– Allocations to Neighborhood Fund and Public Purpose Project Fund

• Base Assessed Value: $270,693,404• 2011 Assessed Value: $705,000,000

Bef

ore:

The Ellis Hotel

Afte

r:

Program Goals:• Enhance the appearance of commercial areas

while building safer, more attractive and stable neighborhoods

• Help new and established businesses attract customers and generate increased revenues

• Support the Atlanta Streetcar and generate ridership

• Leverage private investment

• Complement other community revitalization efforts

Downtown Façade Improvement Grant Program

NMTC: Overview

• Federal program enacted by Congress in 2000 to drive private sector investment to urban and rural communities with high rates of poverty and unemployment

• NMTC Program attracts private investment to finance commercial, industrial, manufacturing and mixed‐use projects in low‐income neighborhoods

• Federal priorities for NMTC investments:– Job Creation – Jobs Accessible to Low‐Income Persons– Goods and Services to Low‐Income Communities– Flexible Lease Rates for Locally‐Owned Businesses– Improved Access to Healthy Foods

32

New Markets Tax Credits Program

• Atlanta Emerging Markets,Inc. (AEMI), a CommunityDevelopment Entity 100%owned by Invest Atlanta, hasbeen awarded $110 Millionin New Markets Tax Creditallocation since 2007

• The NMTC program providesreal estate developers andoperating businesses withbelow market rate debtproducts with favorableterms

Eligible Areas for Investment

NMTC Previous TransactionsAerotropolis Atlanta

National Center for Civil & Human RightsGeorgia Aquarium

200 Peachtree

$30 million mezzanine loan to finance the acquisition, demolition and remediation of the 122 acre Ford auto plant in May 2009. Over 400 annual permanent jobs created.

$12 million mezzanine loan to convert the historic Macy’s building into a special event center that includes a jazz club, banquet hall, meeting rooms and offices. Over 623 annual permanent jobs were created.

$25 million mezzanine loan to finance the expansion and renovation of aquarium exhibits in December 2010. Over 478 annual permanent jobs created.

$13 million NMTC loan to finance the construction of the NCCHR in January 2013. Over 300 annual permanent jobs created.

Invest Atlanta SupportsAtlanta Better Buildings Challenge

Invest Atlanta’s goals for energy savings projects:• Upgrade older buildings with new technology• Attract tenants to decrease vacancy• Create jobs

Four diverse buildings selected as priorities for TAD funding:1. Walton Building – historic building being converted to hotel2. 100 Peachtree – 35‐story office building3. English Avenue Yards – warehouse and industrial loft campus4. American Cancer Center – office building with interior atrium

Housing Finance Department

Programs for City Living

PROGRAMS FOR HOMEOWNERSHIP

• $60M available• 1st mortgage program• FHA loans only• Up to 5% grant• 120% ‐ 140% AMI• $374,268 max purchase price

HOME ATLANTA 4.0

• $500K available• 2nd mortgage program• Up to $15K• 5 year deferred loan• 115% ‐120% AMI• 203K loans eligible• No purchase price limit

NEIGHBORHOOD LIFT

• $800K available• 2nd mortgage program• Up to $10K• 5 year deferred loan• 80% AMI• First‐time homebuyer • $252,890 max purchase price

AAHOP

• $400K available• 10% of sales price – up to $15K

• 5 year deferred loan• 115% ‐120% AMI• Vine City/English Ave. area only

• No purchase price limit

HOAP

37

PROGRAMS FOR DEVELOPERS

TAX EXEMPT BONDS

• $75M+ available annually

• Below market interest

• Up to 100% financing

• Leverage 4% LIHTC

• 15‐30 year affordability

• 20/50 or 40/60

• 15% market rate units 

HOUSING OPPORTUNITY

• 2nd mortgage loans

• Low interest rate (1%‐3%)

• Up to 20% of project cost

• 15 year affordability

• 15% market rate units

• 20%  of units at 60%  AMI

BELTLINE TRUST FUND

• Grant dollars

• Must be in Beltline TAD

• Adherence to design guidelines

• Up to 30% of project cost

• 15 year affordability

• 15% of units at 60% AMI

VINE CITY TRUST FUND

• 2nd mortgage loans

• Low interest rate (1%‐4%)

• Must be in Vine City or English Ave Communities

• Up to 50% of project cost

38

TAX EXEMPT BONDSM-Street Apartments

• $28M in TEB financing for $31M project (80% Market; 20% Affordable)• New construction of 308 apartment units in West Midtown• Includes 8,500 sq.ft. of commercial space, leasing center, clubroom,

fitness center, parking deck, swimming pool, limited access features• Rated, lower floater bonds with Region LOC• Developer: Julian LeCraw & Company

BELTLINE AFFORDABLE HOUSING TRUST FUND

Lofts at Reynoldstown Crossing

• $1.1M grant for $5.1M project • Conversion and adaptive reuse of warehouse to 30 condominiums• Avg. purchase price $150K • Includes sales office with clubhouse, business/computer center, fitness

center, community room, gazebo, picnic area• Developer: Atlanta Beltline, Inc. and Urban Realty Partners

BELTLINE AFFORDABLE HOUSING TRUST FUNDPonce City Market

• $2M grant for a $37M housing component project creating 52 workforce housing units located in higher cost area

• Adaptive Reuse of 2M sq ft into 450K sq ft of office, 330K sq ft of retail & restaurant, 259 residential units

• Athena Healthcare will occupy 80K sq ft of office space, providing 500 jobs• Total project investment of $200M • Developer: Jamestown Properties

2010-2013 ResultsDeployed $135 million in incentives and leveraged an additional $1.38 billion of real estate investment and business activity

Created and/or retained 9,051 jobs occupying 8,680,196 square feet of real estate space

Stabilized and transformed neighborhoods  by financing 2,500 units of housing and making the dream of homeownership a reality for 520 families

Funded 12 Tax Allocation District (TAD) projects spurring $80M in capital investment to assist in revitalizing and redeveloping five (5) neighborhoods in the City of Atlanta 

1

Neighborhood Revitalization$80M of capital has been invested in Vine City, English Avenue,

Lakewood, Greenbriar and Downtown Atlanta to fund 12 catalytic projects and assist in the revitalization of these neighborhoods

Quest Resource Center

Historic Westside Village

Trestletree Apartments

Mims Park

Villas at the Dome

7

Catalytic ProjectsInvest Atlanta has incentivized several catalytic projects to advance

the city’s economic recovery

200 Peachtree

New Stadium Project

National Center for Civil & Human Rights

Ponce City Market

Dolphin Exhibit

Wal-Mart Grand Opening Historic Westside Village

10

Thank you!

133 Peachtree Street NE Suite 2900Atlanta, GA 30303

(404)880-4100www.investatlanta.com