experts in public + private partnerships Real Estate and Economic Advisory 865 S Figueroa St. 35 th Floor, Los Angeles, California ph fx Kosmont CompaniesRenaissance Community Fund Revitalization & Development Projects

Wil Soholt Senior Vice President Kosmont Companies Collaborative Economic Development Presentation to the CALED Conference Thursday, August 11, 2011

3 Overview Kosmont Companies Profile The Public Entity The Private Entity Sources of Synergy in Partnerships Examples Conclusions

4 Summary “Public” entities and “Private” entities can achieve results in both parties interest better than either party alone by using or supporting the unique skills, needs, resources, and appetites of the other.

5 The Original Public/Private Partnership 5 I will bring you jobs, sales tax, property tax, economic development, prosperity and abundant sunshine. Trust me. OKAY! (Purportedly an Actual Picture)

6 Kosmont Companies Profile Public/Private Transactions Focus on Real Estate & Economic Development Trusted advisors since 1986 Staff has experience in both public and private sectors Has broad experience in facilitating transactions in a variety of market conditions

7 The Public Entity Likes stability / consistent growth in revenues Traditionally slower in adapting to best practices (but this is changing) Is hurting from recent cyclical cuts Earns tax revenues from new ventures Traditionally has access to inexpensive capital and grants Is usually willing to give up upside to protect downside

8 The Private Entity Demands growth in revenues Establishes best practices to survive Creative, problem anticipating and solving entrepreneurial spirit expands the profit margin Traditionally more risk tolerant, but likes to protect the downside Established firms have access to capital May be nimble from recent market cycle, on the sidelines, and looking for investment opportunities

9 Sources of Synergy Knowledge of best practices Access to capital Sharing of new / incremental Tax Revenues Differencing risk tolerance Other?

10 Example - Retail Developments A Variety of Retail Re / Developments City: –Desire for / access to new tax revenues –Access to differing financing sources Developer: –Development expertise –Operational expertise –Tolerance for development risk

11 Example - Norco Silverlakes 128 Acre Equestrian and Sports Park City: –Property –Public Improvements –Market / Demand Developer: –Operational Expertise –Capital For Improvements

12 Example - Hotel Development New Hotel Development City: –Owns portions of property –Willingness to put incremental tax revenue at risk Developer: –Entrepreneurial –Willingness to work with alternative financing structures

13 Conclusions Understand the differing needs of each party Structure collaboration to support the needs of each party Bringing new ideas or structures can be difficult, but yield results

14 DISCLAIMER: Kosmont & Associates, Inc., doing business as Kosmont Companies has prepared the above based on a review of available documents and information in the public realm. The information provided is not a substitute for professional advice in the relevant area being addressed. Kosmont Companies does not guarantee the reliability of any information provided herein. Presentation of this information is not intended to create, and receipt of this information does not constitute a professional client relationship.