1. 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

2. 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

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

4. 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)

5. Source and Use – City of Monticello
12/8/2016
Source and Use – City of Monticello
Source
Amount
Use
EIP
$ ,000
Rail spur construction
DevelopmentAuthority
$ 1,006,000
Land & Improvements
$ 1,006,000
OGA EDGE
$ ,000
Site Improvements
USDA
$ ,000
Building
RLF
$ ,000
Rail Spur Construction
City
$ ,997
Engineering
$ ,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

6. 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)

7. 12/8/2016
Georgia Department of Community Affairs CDBG Economic Development Redevelopment Fund Program (RDF)

8. 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.

9. 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”

10. 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

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

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

13. 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

14. 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

15. Greensboro RDF Award – Success!
12/8/2016
Greensboro RDF Award – Success!
--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

16. Program Manager Contacts:
12/8/2016
Program Manager Contacts:
Brock Smith – Manager, CDBG Set-Asides
(404)
Gabe Morris – Program Manager (EIP/RDF/ITAD)
(404)

17. 12/8/2016