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

2. 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

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

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

16. 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

17. 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.”

18. 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

19. 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)

20. 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

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

22. 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

23. 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

24. For additional information please contact our Central Mass Team through:
Claire O’Neill, VP Planning & Development
(508) ext. 134
Kelly Arvidson, VP Business Development
(508) ext. 127