Steed Robinson, Office of Community Development 12/8/2016 Georgia Department of Community Affairs CDBG Economic Development & Redevelopment Examples EIP and RDF March 14, 2017 Steed Robinson, Office of Community Development

Process - What happens after submitting an IPA or Pre-App? 12/8/2016 Process - What happens after submitting an IPA or Pre-App? Initial Project Assessment (DCA)/ Pre-Application (OGA) PACA Provides guidance for application development Application Development and submission Completeness letters help identify shortcomings in the application Applications often miss something Since most DCA ED and OGA funding is “threshold-based”, allows for Technical Assistance to get applications to funding range. Completeness Letter

EIP GRANT PUBLIC INFRASTRUCTURE 12/8/2016 EIP GRANT PUBLIC INFRASTRUCTURE

City of Monticello – Norton Packaging 12/8/2016 City of Monticello – Norton Packaging Recipient – City of Monticello Sub-Recipient – Norton Packaging Grant Amount – $420,000 Project – public rail spur Private Investment – $2.67 Million Jobs – Create 45, 23 LMI Persons --public rail spur --all land owned by Development Authority of Jasper Co --46,000 sq ft facility --production and warehouse space --EIP used to construct 990 track feet of rail spur --90 LF of 36” storm drainage pipe --facility makes plastic pails, paint cans, other custom packaging --serves paint, janitorial, petrochemical, agricultural, adhesives, and food packaging --leading supplier of containers in US (customers in Far East and Australian markets)

Source and Use – City of Monticello 12/8/2016 Source and Use – City of Monticello Source Amount Use EIP $ 420,000 Rail spur construction DevelopmentAuthority $ 1,006,000 Land & Improvements $ 1,006,000 OGA EDGE $ 50,000 Site Improvements USDA $ 85,000 Building RLF $ 80,000 Rail Spur Construction City $ 10,997 Engineering $ 10,997 Norton $ 2,670,588 Land, building, M&E, F&F $ 2,670,588 Total $ 4,322,585 $ 4,322,585 --Monticello (2,500 pop) --IDA donated property --local, state and federal tax revenue calculated at $800,000 per year --see multiple participants --6.3/1 ratio of private funds to EIP

Special Conditions – Inherent to Rail Spur Projects 12/8/2016 Special Conditions – Inherent to Rail Spur Projects Bid documents, Bid specifications, signed contract and Bid Bonds. Evidence of other funding source(s). Documentation certifying Rail Company has approved the final plans for the design for the rail spur. Railroad permits. “Intergovernmental Agreement” between local government and Development Authority. “Siding” / “Side Track Agreement” – Title varies according to Railroad Company. “Industrial Track Agreement” - Title varies according to Railroad Company. Economic Development and Construction Agreement – Do Not Execute. Letter of Credit (Surety). --Norfolk Southern rail line (class 1 railroad) --NS provided preliminary approval of design --20 year continued public ownership agreement between Monticello and IDA --consistent with local/state planning requirements --process 1) draft concept plan 2) local community notified 3) local PE is engaged for design 4) submit to class 1 railroad – 60 to 90 days for approval 5) term letter and siding agreement 6) total time 9-12 months --Do not execute ED and C (DCA, IDA, Co, UGLG)

12/8/2016 Georgia Department of Community Affairs CDBG Economic Development Redevelopment Fund Program (RDF)

Overview of the RDF Program 12/8/2016 Overview of the RDF Program Encourage communities with blighted properties to focus on long-term community development. Projects must demonstrate the following: Resolution of Spot/Area Basis Blight; Long-term planning and development efforts of the community; Significant impact on the overall project; Strong community commitment; Ready to Proceed; and Completed within 24 months.

Basic Program Parameters 12/8/2016 Basic Program Parameters Projects must alleviate a “slum or blighted” condition Grant - Public infrastructure in support of business/industry Direct Loan –Assistance to “for-profit” entities”

Successful Spot Basis Project 12/8/2016 Successful Spot Basis Project --Greensboro population – 3,359 --vacant, dilapidated --adjacent to downtown --11,000 sq ft of space --water and neglect are the issue Former Chero Cola Warehouse 204 N. West Street, Greensboro

Building Interior - Before Renovation 12/8/2016 Building Interior - Before Renovation

Greensboro – Oconee Brewing Company Microbrewery Building Floorplan 12/8/2016 Greensboro – Oconee Brewing Company Microbrewery Building Floorplan --start up

12/8/2016 Greensboro RDF Award RDF Grant to the City of Greensboro to acquire and stabilize the former Chero Cola warehouse building, a blighted structure located in historic downtown Greensboro to be repurposed as a new microbrewery Owner and operator: Oconee Brewing Company Award Amount: $ 500,000 Total Project Cost : $2,623,035 --Grant to Greensboro --Loan to the DDA --The company was renamed Chero-Cola in 1910, and in 1925 renamed Nehi Corporation after its colored and flavored drinks. In 1934, Chero-Cola was reformulated as Royal Crown Cola. --RDF is replacing rotted floors, ceilings, bring to code and provide accessibility --Loan for 20 years --Interest – 2% with interest only for two years at a rate of 1% --2 jobs to be created

City of Greensboro: Source and Use 12/8/2016 City of Greensboro: Source and Use Source Amount Use RDF $500,000 Building Acquisition $150,000 Building Stabilization $ 270,000 Architectural/Eng. Fees $50,000 Grant Administration $30,000 City of Greensboro $19,917 Utility Connection Fees, etc. SBA 7a Loan: Bank $1,385,000 Building Stabilization/Rehab. $761,732 Equipment/Inventory $520,095 Contingencies $103,173 Georgia Cities Foundation $241,618 Renovation: Collapsed wall Owner Equity $476,500 Equipment and Bank Financing Fees TOTAL $2,623,035 --appraised value of land and building before rehab is $165,000 --DCA was following bank 7a loan --Georgia Cities underwritten by DCA

Greensboro RDF Award – Success! 12/8/2016 Greensboro RDF Award – Success! https://www.facebook.com/oconeebrewingcompany/ --timeframe 1) had to replace 7a lender 2) wall collapsed requiring more $ form GA cities --principal has BA in political science --location is equidistant from Atlanta, Athens, Augusta, Milledgeville (two college towns) --GA law allows “sales” of tours

Program Manager Contacts: 12/8/2016 Program Manager Contacts: Brock Smith – Manager, CDBG Set-Asides (404) 679-1744 brock.smith@dca.ga.gov Gabe Morris – Program Manager (EIP/RDF/ITAD) (404) 679-3174 gabriel.morris@dca.ga.gov

12/8/2016