Southborough's Economic Development Committee (EDC), Broker Breakfast March 24, 2017

MassDevelopment Overview State’s Largest Economic Development and Financing Authority Established in 1998 by and Act of the Legislature (Mass. Government Land Bank and Mass. Industrial Finance Authority) Self-supporting Quasi-Public Agency with Offices Throughout the Commonwealth Numerous Finance Programs to Stimulate Economic Growth, Job Creation and Housing Development in Massachusetts FY16 results: Financed or managed 352 projects generating investment of more than $4.0 billion in the MA economy Projects created 8,200 new jobs and 4,200 housing units in MA

How We Work Promote capital investment in Massachusetts by providing creative and flexible financing and development solutions throughout all stages of a project. Primary tools used to accomplish this objective: Tax-exempt bonds Loans and guarantees Real estate planning and development services We partner with banks, businesses, RE developers, non-profit organizations and municipalities to deliver these programs and to help facilitate new projects. MassDevelopment also plays a key role in maintaining and strengthening Massachusetts Military and Defense Initiatives throughout the Commonwealth

Central Massachusetts Transactions * By Program 2010 - 2016 Tax-Exempt Bonds 1,238,300,000 Brownfields Loans and Grants 5,943,000 Community Health Center Grants 186,000 CoWorking Grants 84,000 Cultural Facilities Fund Awards 5,457,000 Guarantees 21,361,000 Direct Loans 67,941,000 Manufacturing Futures Fund 1,117,000 New Markets Tax Credits 29,250,000 Real Estate Services 247,000 Total $1,369,886,000

MassDevelopment’s Finance Programs Provide direct loans, guarantees and tax-exempt bonds to help organizations expand or grow their operations, spur economic development and create/retain jobs Partner with banks and other non-bank lenders to help mitigate credit and underwriting risks We try to think “outside the box” to provide creative and flexible financing solutions Projects must have some level of “public purpose” benefit (job creation, tax base expansion, etc.) Projects still need to be financially and economically feasible

Tax Exempt Bond Financing Eligible Borrowers Eligible Uses Non-Profit 501(c)(3) Organizations Assisted Living/Long Term Care Facilities Hospitals and Health Care Centers Manufacturers (Small Issue IDBs) Environmental Enterprises Governmental Entities Affordable Rental Housing Charter Schools, Independent Schools, Colleges and Universities New Equipment Building Acquisition and Expansion Land Acquisition New Construction Debt Refinancing (for Non-Profits only) Some Project Soft Costs

Tax-Exempt Bond (IDB) Case Study Landreau Realty, LLC (Tree House Brewery) Charlton, MA $860,000 Mortgage Insurance Guaranty Proceeds Used to Construct a New 53,000 sq. ft. brewery on 68 acres of land on Rt. 20 Country Bank for Savings was bond purchaser $18.5 MM total Project Cost Paired with SBA 504 Loan for M&E ($6.5 MM) 14 Existing Jobs; 15 New Jobs and 95 Construction Jobs Forecasted

WGM Fabricators, LLC Whitinsville, MA $5,000,000 Tax Exempt Bond $1,440,000 in Guarantees Through Three Different Programs Proceeds Used to Acquire and Expand 25,000 sq. ft. Building on 3.2 acres in Town of Northbridge Company Moved From RI to MA in 2015 Over $12 MM in Total Capital Investment at This Facility Town of Northbridge Provided TIF 24 Existing Jobs; 36 New Jobs Projected

MassDevelopment Loan Programs Equipment Loans Commercial Real Estate Mortgage Loans Economic Stimulus Loans Emerging Technology Fund Exporter Loans Working Capital Guarantees for Manufacturers TechDollars Loans Green Loan Program Manufacturing Growth and Improvement Loans Mortgage Guarantees Export Guarantees Brownfields Loans Affordable Housing Loans Charter School Guarantees New Markets Loan Fund Community 501c3 Loans Market Rate Housing Loans 9

Our Value Proposition Non-Bank Lender or Loan Participant Higher LTV’s on Collateral Leverage Private Investment Interest Rates at or Below Market Rates Not Subject to Bank Regulation Assist Community Banks if They Will Exceed Legal Lending Limits with Projects or Borrowers Able to Fill Gaps and Holes in Project Financing When and Where Necessary Creative and Flexible Financing Solutions Wide Range of Programs and Services 10

Projects Throughout the Region Ribbon Cutting at Pepperell Place, Pepperell MA Downtown Gardner MA Southbridge Business Center Southbridge, MA American Red Cross Building, Devens, MA 11

Predevelopment and Brownfields Financing: Brownfields Assessment Loans Provide Interest-Free Financing of up to $100,000 Per Redevelopment Site for Environmental Testing. Brownfields Remediation Loans Provide Low-Interest Financing of up to $500,000 for Environmental Clean-Up. Predevelopment Loans up to $100,000 Deferred Interest Payments The Borrower is Required to Provide a 50% Match for these Loan Funds. Eligible borrowers include businesses, nonprofits, municipalities, economic development organizations, and individuals. Site must be located in an EDA Borrower must have site control or right to enter to perform testing. Borrower must not have: Owned or operated the site at the time the contamination occurred; Caused or contributed to the contamination; Possess a business or familial relationship with the contaminator; Possess any outstanding administrative or judicial enforcement actions against their MA properties; and Have access to the Underground Storage Tank Program. MassDevelopment Brownfield Site Assessment & Remediation Awards over the last five years to Central MA projects: $5,942,660.49 © 2013 MassDevelopment

Real Estate Municipal Services Eliminating blight, revitalizing downtowns, creating opportunities for economic growth Technical Assistance to Support Growth throughout Massachusetts: Master Planning and Visioning for Sites and/or Districts Market Feasibility and Financial Analysis Management of Complex Demolition and Abatement Projects Developer Tours and Key Site Identification RFP/Q Development and Process Management Surplus Property Reuse and/or Activation Assistance Regional Economic Development Planning Programs and Grants TA Connect Technical Assistance Funding Commonwealth Places ULI Technical Assistance Panels (TAPs) House Doctor Consultants Site Readiness Program © 2016 MassDevelopment

Who We Help Real Estate’s Municipal Services Department assists municipal, regional and state entities with solving complex economic development challenges. Working closely with municipal officials, planners, local stakeholders and others, our team helps bring all partners together to develop creative solutions and identify a clear path forward. How We Help Through our in-house expertise and contracts with “house doctor” consultants, MassDevelopment is able to assist municipalities and other public entities address their planning and development projects quickly and efficiently. We also help communities identify funding sources, and coordinate with other local, regional and state agencies to deploy those resources. Furthermore, through programs like TA Connect, our team hosts workshops, panel discussions and peer groups to share insight about economic and real estate best practices. © 2015 MassDevelopment

Statewide Municipal Assistance providing: Making connections, coordinating efforts, maximizing impacts Statewide Municipal Assistance providing: Coordinated Networks Education and Capacity-Building Direct Tactical Assistance

How It Works Anticipated Outcomes Intake Review Execution Community submits info form describing their needs. TA Connect receives and coordinates review. Form can be found on all partners’ websites. Intake TA Connect partners exchange information and discuss what they know about the community. Team decides next steps to address proposed challenge. Review Community receives a recommendation regarding capacity-building and/or direct tactical assistance. TA Connect provides regular follow-up to ensure progress. Execution Anticipated Outcomes More succinct TA delivery Better communication both among partners and communities Leveraged opportunities Centralized portal of information Long-term economic development and improved planning

Site Readiness Program The 2016 Economic Development Bill authorizes $15M for the Commonwealth Site Readiness Program, to be administered by MassDevelopment, for the purpose of funding… “site assembly, site assessment, predevelopment permitting and other predevelopment and marketing activities that enhance a site’s readiness for commercial, industrial or mixed-use development; provided, that a portion of the funds shall be used to facilitate the expansion or replication of successful industrial parks; and provided further, that a portion of the funds shall be used to support the revitalization of downtown centers.”

Urban Land Institute Technical Assistance Panels (TAPs) Intensive one-day, expert-led study to address critical planning concerns at a particular site Initiated by an application from a public agency or local nonprofit 6-12 person multidisciplinary team of ULI members (consisting of developers, investors, designers, engineers, and planners) complete site visits, stakeholder interviews and give land use recommendations Final report is completed 6-8 weeks later TAPs are a catalyst for local development projects MassDevelopment sponsors 4 TAPs per year © 2016 MassDevelopment

Location of TAPs in Massachusetts This map highlights all of the completed ULI TAPs over the years, with a focus on MA cities and towns. There are a total of 41 TAPs (including three in Rhode Island, one in Connecticut, and one in Maine). This presentation is an analysis of the MassDevelopment-sponsored TAPs that took place from FY12 to FY16, in which I am narrowing down the common themes that seem to weave through many of the cities and towns – sharing the same challenges and constraints. Tiffany Leung, MassDevelopment (Summer 2016)

Common Themes across TAPs Improve pedestrian amenities (accessibility, safety, & aesthetics) Increase connectivity with physical improvements & programming Recruitment for commercial expansion Strengthen local business engagement Expand public participation, while preventing planning fatigue © 2016 MassDevelopment Source: Pittsfield TAP Source: Saugus TAP

Commonwealth Places Commonwealth Places, a partnership between MassDevelopment and Patronicity, launched in June 2016 Patronicity.com/CommonwealthPlaces

Commonwealth Places Apply How it works Review Live Projects apply through Patronicity.com Patronicity ensures fit, creates compelling story Review MassDevelopment approves or rejects via Patronicity Approvals within days instead of months Live Patronicity polishes up, launches Patronicity coaches through crowdfunding campaign

Project Examples East Main Street Pocket Park Orange, MA Sought $9,500 – Raised $9,773 Nature & Environmental Education Center Danvers, MA Sought $10,000 – Raised $18,000! The Corner Spot Ashland, MA Sought $25,000 – Raised $36,000+! Cracker Barrel Alley Northampton, MA Sought $10,000 – Raised $10,150 CoCreative Center New Bedford, MA Sought $50,000 – Raised $50,603 Honeybee Meadow at ArtSpace Maynard, MA Sought $6,500 – Raised $8,595

For additional information please contact our Central Mass Team through: Claire O’Neill, VP Planning & Development (508) 363-2799 ext. 134 coneill@massdevelopment.com Kelly Arvidson, VP Business Development (508) 363-2799 ext. 127 karvidson@massdevelopment.com