NEW MARKETS TAX
SERVICES: Development Finance Organizations
Powerful, multi-purpose development banks that bring global long-term debt capital (through taxable and tax-exempt bonds) to high impact development projects/initiatives. If properly designed and operated, these institutions are not simply a pass-through for capital, rather they can help:
- Build/rebuild neighborhoods, cities, regions;
- Redevelop abandoned military bases;
- Reposition large industrial sites;
- Conduct environmental cleanup;
- Create world class research centers;
- Build industrial and technology parks;
- Develop in-fill, affordable and mixed-income housing and mixed-use facilities, often in combination or partnership with other public and private development capital funds, and;
- Incorporate environmental sustainability.
SDS, with its partners Economic Innovation and First Infrastructure, specializes in helping states and regions create development finance organizations (DFO) to enhance their economic and community development arsenal. Our team structures and develops DFOs that incorporate: "best practices" of existing authorities, environmental sustainability, strategies and funding sources, and the ability to utilize a broad "toolbox" of economic and community development tools beyond itself. Working closely with our clients, we structure a program tailored to meet development and regional needs focused on client goals, capacities, resources and opportunities.
The following are general services we undertake as steps in creating effective DFOs:
SERVICES
- Evaluate state's current bond practices and statutes
- Evaluate need for development financing in the state
- Assess demand for bond financing based on the types of projects
- Assess potential bond management capacity
- Determine feasibility of a statewide DFO
- Determine the legal, financial and regulatory structure
- Develop a public relations strategy to garner support from local and statewide politicians, community leaders, unions and others
- Design the structure of the DFO
- Develop the organization and staffing plan
- Amend any legal statutes necessary to launch DFO
- Review transactions and provide transactional and process advice
- Assist leadership with organizational issues
- Provide organizational status reports to senior management and/or the Board
- Provide grant writing and fundraising assistance for high impact projects requiring additional capital