Economic Development Success Stories
EIP GRANT PUBLIC INFRASTRUCTURE
Page 3Economic Development | Upson County – Innoware Plastics, Inc. Recipient – Upson County Sub-Recipient – Innoware Plastics, Inc. Grant Amount - $375,000 Project – rail spur Private Investment - $7.1 Million Jobs – 30 jobs
Page 4Economic Development | Source and Use – Upson County SourceAmountUseAmount EIP$ 375,000Rail Spur Construction$ 352,500 Grant Administration$ 22,500 OGA Equity$ 500,000Site Preparation$ 200,100 Land Acquisition$ 194,112 Rail Spur Construction$ 105,788 TUCIDA$ 500,000Rail, Road, Eng, Land Acq, Admin$ 500,000 NSV$ 80,000Rail Switch/Turnout$ 80,000 Innoware$ 7,081,400Building Upgrades, M&E$ 6,600,000 Rail, site Prep, Eng, Admin, Env$ 481,400 Total$ 8,536,400Total$ 8,536,400
Page 5Economic Development | Upson County
EIP GRANT – LOAN TO PRIVATE FOR-PROFIT BUSINESS
Page 7Economic Development | City of Harlem – Lucky Lady Pecans, Gifts & More, Inc. Recipient – City of Harlem Sub-Recipient – Lucky Lady Pecans, Gifts and More, Inc. Grant Amount - $ 157,058 Project – Machinery & Equipment Private Investment - $ 253,504 Jobs – 20
Page 8Economic Development | Source and Use – City of Harlem SourceAmountUseAmount EIP$ 157,058Equipment$ 147,658 Grant Administration$ 9,400 Private$ 253,504Equipment$ 253,504 City$ 1,000Audit$ 1,000 Total$ 411,562Total$ 411,562
Page 9Economic Development | “Making it work” Underwriting public financing requires: ▪Flexibility ▪Keeping an eye open for potential ▪Remembering the public purpose ▪Looking at the “whole” project Not a rigorous quantitative scoring method!
Page 10Economic Development | C REDIT I NDICATORS: Sales Trends Profitability Management Cash Flow Trends Working Capital Adequacy Capitalization Industry Conditions Years in Business Business Plan D&B Rating Equity Injection into project Bank Participation in project Cash reserves/lines of credit Personal credit of principals
Page 11Economic Development | Business Plan: Description of Business ▪Form, type, product/service Marketing Plan ▪Customers, market analysis and trends, competition Management Plan ▪Background, experience of principals, personnel needs, employee benefits Financial Plan ▪Budget, working capital adequacy, break-even analysis, historical and projected financial statements
Page 12Economic Development | So where do you draw the line? SOLVENCY PROFITABILITY Solid Credit High Risk GREY AREA
Page 13Economic Development | Positive Attributes of a Successful Project Strong Management Access to Capital Marketplace Opportunities Targeted Industry Strong Commitment by Local Leadership
REDEVELOPMENT FUND
Page 15Economic Development | City of Donalsonville Recipient – City of Donalsonville Grant Amount - $150,918 Project – Demolition and Clearance of the vacant dilapidated building in historic downtown. Private Investment - $23,000 City - $113,281
Page 16Economic Development | SourceAmountUseAmount RDF$ 150,918Demolition$ 129,000 Engineering$ 12,867 Grant Administration$ 9,051 Holley Estate$ 23,000Donated Land/Bldg.$ 23,000 City$ 113,281Parking Lot construction$ 89,075 Engineering$ 8,941 Contingencies$ 15,265 TOTAL$ 343,591TOTAL$ 343,591 Source and Use – City of Donalsonville
Page 17Economic Development | City of Donalsonville