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be financially feasible, 4) be within reasonable risk, 5) be likely to be repaid, and 6) provide permanent, full- time employment for low and moderate income individuals. Example: Purchase of Centre Court and Washburne Buildings The Urban Renewal Agency used Section 108 loan and BEDI grant funds to purchase the Centre Court and Washburne buildings in July 2008, as part of the Beam Development project. Beam then purchased the properties from the Agency for a total purchase price of $3.6 million. The URA provided financing to Beam totaling $3.55 million for the property acquisition. The sources of funds for the URA’s financing included HUD Section 108 loan funds ($2.7 million), BEDI grant funds ($440,000), and DRLP funds ($404,000). The primary source of repayment for the Section 108 loan is payment from Beam Development on the loans from the URA. The secondary source of repayment is urban renewal, to the extent that there are funds available. The final source of repayment is future CDBG allocations. Business Development Fund (BDF) Business Development Fund Summary ? Available funds FY10: 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 CDBG. Established to create jobs and stimulate private sector investment, the BDF could assist local tenants to start-up or relocate to downtown. The BDF is a self-sustaining revolving loan fund that was started 25 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 have ranged 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 $16 million and leveraged an additional $43 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, and Hartwick’s. D. Tax Exemptions Tax exemptions differ from other types of financial tools because they do not represent a direct expenditure by the City to another party for a development purpose. Instead, they represent foregone tax revenue. The theory behind the tax exemption is that the development would not have occurred “but for” the granting of the exemption. If the project would not have occurred without the exemption, then the tax revenue would not have ever been received. Multi-Unit Property Tax Exemption (MUPTE): MUPTE Summary ? 10-year property tax exemption on core-area housing investment in 5 or more units ? Council approves each exemption MUPTE is enabled under state law for the purposes of stimulating the construction of multi-unit housing in the core area, and to ensure use of the core area as a place where citizens have the opportunity to live as well as work. The MUPTE program offers tax exemptions for the construction, addition, or conversion of rental or