Page 1Heritage Tourism August 2006 ©2006 GDEcD

Alternative Funding Sources for Heritage Tourism Presented by Bruce Green Georgia Department of Economic Development August 21, 2006

Page 3Heritage Tourism August 2006 ©2006 GDEcD Finance Tools Grants - State & Federal Loans – State & Federal

Page 4Heritage Tourism August 2006 ©2006 GDEcD

Page 5Heritage Tourism August 2006 ©2006 GDEcD Financial Tools Local Funds Funds derived from tax base Special Tax District CBID $ CID $$ TAD $$$

Page 6Heritage Tourism August 2006 ©2006 GDEcD Finance Tools Indirect Financial Incentives Enterprise Zone Opportunity Zones Land Bank Authority 501-C3 Charitable Org Investment Tax Credits Deferred Property Tax

Page 7Heritage Tourism August 2006 ©2006 GDEcD Downtown Dalton – tax district

Page 8Heritage Tourism August 2006 ©2006 GDEcD City Business Improvement District Advertising Promotion Sanitation Security Business Recruitment & Development

Page 9Heritage Tourism August 2006 ©2006 GDEcD The CID generally covers Peachtree Road from Shadowlawn to Peachtree Dunwoody; Piedmont Road from Peachtree to Habersham; and Lenox Road (Buckhead Loop) from Piedmont to East Paces Ferry. The district "has applied for $17 million in federal and state funding to begin the Peachtree Corridor Project. The Buckhead CID and the City of Atlanta will provide an additional $7.5 million in local funds." Buckhead CID

Tax Allocation District

Page 11Heritage Tourism August 2006 ©2006 GDEcD

Page 12Heritage Tourism August 2006 ©2006 GDEcD Indirect Financial Incentives

Page 13Heritage Tourism August 2006 ©2006 GDEcD Enterprise Zones Creates a local ad valorem tax abatement incentive expressed over a 10 year period.

Page 14Heritage Tourism August 2006 ©2006 GDEcD Enterprise Zones An area must meet three out of the four following criteria: Poverty, Unemployment, General distress; and Underdevelopment Must increase employment by five or more new full time jobs or create improvement 5x greater than value of land.

Page 15Heritage Tourism August 2006 ©2006 GDEcD Opportunity Zones HB 984 State's Job Tax Credit Program of "Opportunity Zone" tax credits. DCA to designate as a "less developed area" an area that is contained by two or more census block groups with 20% or greater poverty, within an enterprise zone and where an urban redevelopment plan exists. Opportunity Zones are intended to encourage development and redevelopment in smaller geographic areas than are served by existing economic development programs. State resources are directed towards these "pockets of poverty" in a way that can be supplemented by federal programs that DCA administers.

Page 16Heritage Tourism August 2006 ©2006 GDEcD HB Opportunity Zones Eligible OZ Model from Department of Community Affairs

Page 17Heritage Tourism August 2006 ©2006 GDEcD Land Bank Authority

Page 18Heritage Tourism August 2006 ©2006 GDEcD Historic Rehab Investment Tax Credits

Page 19Heritage Tourism August 2006 ©2006 GDEcD Economic Development Cities and Towns can take charge of their own economic development destinies if they have: Political will; A plan and an implementation strategy; Effective community organization and Communication; Appropriate tools and regulations; Financial resources; and Capable development partners.

Page 20Heritage Tourism August 2006 ©2006 GDEcD A plan and an implementation strategy If the current plan is not working, Then change it. If there is no plan, Then make one.

Page 21Heritage Tourism August 2006 ©2006 GDEcD Effective community organization and communication Identification of the Vision Dissemination of the Vision Codification of the Vision Execution of the Vision Celebration of …

Page 22Heritage Tourism August 2006 ©2006 GDEcD Financial Resources Capitalization of the Vision

Page 23Heritage Tourism August 2006 ©2006 GDEcD Sometimes the private sector can't or won't undertake development projects that the community deems important-even when development incentives are offered. An innovative way to get these projects developed is to use community initiated development (CID). Economic Development

Page 24Heritage Tourism August 2006 ©2006 GDEcD The effective reuse of a city’s historic built environment is a significant component of any strategy that claims to be "sustainable economic development." Preservation Economics Principle

Page 25Heritage Tourism August 2006 ©2006 GDEcD … I would suggest to you that the safekeeping of a locality’s cultural assets, natural environment, and especially its historic built environment is critical to positioning a community to effectively compete on a sustainable basis in the 21 st Century world economy. Donovan Rypkema

Page 26Heritage Tourism August 2006 ©2006 GDEcD In market economies it is the differentiated product (community) that commands a monetary premium. It seems to me that the heart of historic preservation is not having "the world covered by a sole Atlanta which does not begin and does not end." Historic Preservation is a strategy that not only has aesthetic, cultural, and sociological merit. It is an effective economic development strategy as well.

Page 27Heritage Tourism August 2006 ©2006 GDEcD Contact Us Bruce Green, Tourism Product Development Manager Georgia Department Of Economic Development 75 5th Street, Suite 1200 Atlanta, GA