1. Community Development Finance Resources for Downtown Revitalization Missouri Community Betterment Conference Jefferson City, MO October 19, 2009

2. Perspective “All that is valuable in human society depends upon the opportunity for development accorded the individual.” Albert Einstein “Man was made for action, and to promote by the exertion of his faculties such changes in the external circumstances both of himself and others, as may seem most favorable to the happiness of all.” Adam Smith in The Theory of Moral Sentiments

3. Goals of Development Increase economic opportunity Economic well-being and equity Economic growth Prosperous places to live and work Personal well-being Safe, decent and affordable housing Quality of life Public welfare Healthy environment Environment free from discrimination Vital community facilities Aid, counsel, assist and protect small businesses Others?

4. Why? Several views…there may be more: The past, present and future of CD finance Discrimination Knowledge and information is costly Requires special expertise Scarcity of profitable opportunities

5. Roles Explorer – “Discovery consists of seeing what everybody has seen and thinking what nobody has thought.” Albert Szent-Gyorgyi, Hungarian biochemist, Nobel Prize, 1937 Innovator - “It is a key competency that quite possibly represents the difference between a community’s success and its potential failure” paraphrased from Andrew Papageorge, author Entrepreneur – an entrepreneurial mindset

7. A new way to think and act? ProblemstoOpportunities/possibilities Problem-driventoVision-led MoneytoMeaning Scarcity toAbundance Using otherstoCollaborating with others TransactionstoRelations PessimismtoOptimism DeficitstoAssets

8. Topics Let’s start at the very beginning, a very good place to start.” Capital Finance Community development Community development finance

10. Definitions Capital Human, social, financial, natural, etc… Finance is the science of raising, investing and managing revenues and resources for the best possible advantage. Community development finance is economic growth in which people come together and make the decisions to organize and pool their assets and resources for the purpose of addressing unmet needs and opportunities.

12. Definitions Assets are any advantages, resources, goods or services available for use. Unmet needs are inadequately developed or insufficiently satisfied wants that may be met with community development finance. An opportunity is a favorable match of goals and objectives that may allow a good chance for community progress.

14. How? Intermediation Source and uses Case studies Tools and techniques

16. Tools and Techniques The value of good design: Mitigation Flexibility Customization Recognition and use of cycles Collaboration and community involvement

17. http://stlouisfed.org/community_development/selfstudy/ Matthew W. Ashby Senior Specialist Matthew.w.ashby@stls.frb.org