International Economic Development Council
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Economic Development Training Class


Economic Development Finance Programs


Date:February 17-19, 2010
Location: Lansing, MI


Please note: This class is conducted in partnership with the Michigan Economic Developers Association (MEDA) and the National Development Council (NDC). For information on fees, accommodations, the agenda, and speakers - and to register online for this class - please visit medaweb.org/398524.ihtml.


» Agenda
» Instructors
» Accommodations


As economic developers initiate programs and projects to improve the economic health of a community, it is essential to have a clear understanding of how these activities are financed. Covered in this course is a broad spectrum of finance programs, including small business development and real estate development. The goals and requirements of the programs will be discussed and participants will have an opportunity to work through case studies in order to solidify their knowledge of the programs.

Course Highlights:

  • Small business lending
  • Community development financial institutions
  • Revolving loan funds
  • New markets tax credit
  • Real estate financing
  • Historic preservation tax credit
  • Low income housing tax credit

 

Agenda

February 17

8:30 - 9:00 am

Registration (Coffee Available)

9:00 - 9:30 am

Welcome and Introductions

9:30 am - 12:30 pm

Economic Development Financing
• The Goals of Economic Development Finance
• Tools and Incentives
-- Public Sector
-- Private Sector
• Loans, Guarantees, Grants and Tax Incentives
-- Calculating Debt Service

Case Study
• Source and Use Statement

12:30 - 2:00 pm

Lunch

2:00 - 4:30 pm

Operating Business Financing Programs
• Program Models
-- Subordinated Financing
-- Loan Guarantees
-- Micro Lending
-- Equity Investments
• Small Business Administration (504, 7(a), and micorlending)
• Community Development Finance Institution
• Industrial Development Bonds (IDBs)

4:30 pm

Homework – Case Study

February 18

8:30 - 9:00 am

Homework Review

9:00 - 10:00 am

Revolving Loan Funds
• Matching Sources and Uses of Funds
• Funding Sources
-- CDBG
-- Foundations
-- Community Reinvestment Fund
-- Banks and “Lending on a Spread”

Case Study

10:00 am - 12:00 pm

Financing Example: Business Loan Fund

12:00 - 1:00 pm

Lunch

1:00 - 3:00 pm

Real Estate Financing

Key Financial Analysis Documents
• Source and Use Statement
• Operating Pro Forma

Permanent Lender Underwriting and Ratio Analysis
• Underwriting Issues
• Lender Ratios
-- Loan to Value Ratios
-- Debt Coverage Ratio

Case Study

3:00 - 4:00 pm

Public Financing Programs
• Subordinated Loan Programs
• CDBG – Float Loan Program
• CDBG – Section 108 Program
• Other methods public sector assist real estate development

4:00 pm

Homework - Case Study

February 19

8:30 - 9:00 am

Homework Review

9:00 - 10:30 am

Taxes and Real Estate Development
• Cash Flow After Tax
• Depreciation
• Passive Income/Loss Limitations

Case Study

10:30 am - 12:00 pm

Low-Income Housing Tax Credits Rehabilitation Tax Credits (Historic Tax Credits)
• Tax Credit Thresholds
• Limited Partnerships

Case Study

12:00 - 1:30 pm

Lunch

1:30 - 2:30 pm

Real Estate Development and New Markets Tax Credits
• Key Issues

Case Studies

2:30 - 3:00 pm

Pulling It All Together: Structuring
• Financing Tools
• Debt and Equity Vehicles
• Tax-exempt bond financing

3:00 pm

Adjourn

* Agenda subject to change

**PLEASE NOTE: In order to receive full IEDC certification credit for this course and a certificate indicating course completion, participants must attend the entire course and stay through the final session on the last day. Please make travel plans accordingly.**

 

Instructors

Kevin Gremse
Director
National Development Council

Kevin Gremse is an economic development entrepreneur with two decades of experience in community economic development, particularly with real estate finance, affordable housing development, and small business development. Mr. Gremse has full working knowledge of financial underwriting for business credit, commercial real estate, and residential development. In addition, he is skilled in structuring creative financial packages that bridge the gap between public and private sector investment in distressed urban areas.

As Director at National Development Council, Mr. Gremse has coordinated and delivered a multi-disciplined set of economic and housing development services, including technical assistance, training, and financial services to public and private sector clients, consisting of municipal economic development offices, community development corporations, and national financial institutions.

Mr. Gremse has represented and delivered NDC financial products, including a housing and historic tax credit investment fund, real estate development division, and small business lending company, to client communities. Mr. Gremse has provided entrepreneurs and developers in NDC client communities with small business and real estate finance assistance - structuring, packaging and securing public, private and equity funding for projects that create jobs and investment.

Mr. Gremse is a graduate of the University of Scranton and earned a master’s degree from the University of Pennsylvania’s Fels Institute of Government. He lives in Connecticut with his wife and four children. He serves on the board of directors for Catholic Charities of Fairfield County and the Community Capital Fund, a community development financial institution (CDFI).

 

Accommodations/Training Location

Training Location

Thomas M. Cooley Law School
Cooley Temple Conference Center
217 South Capitol Avenue
Lansing Michigan 48901
Email: avery.john@medaweb.org
Phone: (517) 241-0011


Accommodations

Radisson Hotel Lansing
111 North Grand Avenue
Lansing, MI 48933
Phone: (517) 482-0188 or (800) 333-3333
Website: www.radisson.com/lansingmi?s_cid=L6845348

IEDC room rate: $116 single/double
Cut-off date: Sunday, January 17. 2010

The Radisson Hotel Lansing is within walking distance (0.3 miles) to the Cooley Temple Conference Center.

 

Registration Fees

By Jan 6

Jan 7 - Feb 3

*After Feb 3

IEDC Member

$525

$625

$665

Non-member

$625

$725

$765

*Walk-in registrations will be accepted. Full payment must be made on-site in order to attend the course.

 

 

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Upcoming IEDC courses:

Economic Development Finance Programs
February 17-19 | Lansing, MI

Economic Development Credit Analysis
March 3-5 | Los Angeles, CA

Economic Development Strategic Planning
March 18-19 | Springfield, MO

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