Item A: Downtown Development Financial Tools

Home Browse Search

obligations that are paid from Atrium building rentals. The Eugene Public Library was partially financed with City full faith and credit obligations that are paid from tax increment revenues. G. Assessments / Local Improvement Districts / Business Improvement Districts Assessments / Improvement / Business Districts Summary For transportation / utility projects Property owners may elect to finance over 10 years through City Assessments and improvement districts can be used for infrastructure improvements, such as transportation or utility projects. Assessments and improvement districts spread the cost of the project among those that benefit. Property owners contribute to the cost of the project through assessments. For local improvement districts, property owners may finance their obligations through the City over a 10-year period. Example: No recent downtown example. H. Business Development Fund (BDF) Business Development Fund Summary Available funds FY08: dependent on ongoing loan activity Below market interest rate Matched with private financing Eligible projects must create new jobs The BDF provides assistance to new and existing businesses through the federal Community Development Block Grant program. Established to create jobs and stimulate private sector investment, the BDF could assist local tenants start up or relocation to a downtown project. The BDF is a self-sustaining revolving loan fund that was started 21 years ago. Funds are available to new and existing businesses within Eugene. While businesses that receive BDF loans must create or retain one full time permanent job for every $35,000 in loan funds, companies have typically exceeded this minimum. Loan amounts can range from $10,000 to $500,000 and are generally between $75,000 and $150,000. The BDF can provide up to 50% of project financing. Remaining project financing is provided by private sources. Projects with greater needs may be eligible for the Emerging Business Loan Pool (EBLP), a program within the BDF, for businesses that face extraordinary credit barriers such as low-income status and female or minority owned business. Over 200 businesses have utilized the program and created more than 1,100 new jobs. The BDF program has loaned over $12 million and leveraged an additional $33 million in private investment. Examples:Historically, the BDF program has supported the start-up and expansion of several downtown businesses, including Lord Leebrick Theatre, Opus Six, Harlequin Beads and Jewelry, Due Donne, The Juice Boutique, and Hartwick’s. Page 9 of 13