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A presentation my MassDevelopmnet's CEO Robert L. Culver to the Joint Committee on Economic Development and Emerging Technology.
Citation preview
The Joint Committee on Economic Development and
Emerging Technologies
February 23, 2010
2
MassDevelopment
• Established by legislature in 1998 from merger of Massachusetts Industrial Finance Agency (MIFA) and Government Land Bank (GLB)
• MIFA had lending and bond financing powers (including to non-profits). GLB had lending and real estate development powers in furtherance of job creation and elimination of blight
• Statutory merger implemented sound public policy of leveraging MIFA’s bond financing powers to also fund GLB’s economic development mission
3
Who We Are• Statewide finance and development authority with an
overarching mission of blight elimination and job creation. Specific powers include:– Redevelopment of surplus state and federal property
– Tax- exempt bond financing for non-profits, manufacturing and housing
– Lender to businesses and non-profits for facility expansion, equipment, emerging technologies, environmental assessment and remediation
– Lender to agricultural and seafood industries
– Technical and real estate assistance to municipalities
• 173 employees in statewide offices (includes 51 employees providing municipal services at Devens)
4
Who We Are
• During FY2009, MassDevelopment financed or managed 229 projects representing an investment of nearly $1.2 billion in the Massachusetts economy
• These projects are supporting creation of:– 8,232 jobs (3,362 permanent and 4,870
construction-related) – 1,488 new housing units
5
Where We Are
• Boston• Devens• Fall River• Lawrence• Springfield• Worcester
6
Impact of SB 2270• Eliminates some MassDevelopment non-profit
bond financing powers for:– Cultural institutions– Secondary schools– Primary schools– Higher education– Human service providers
• Loss of up to $2.3 million in recurring annual revenue that supports MDFA lending, development, and municipal services
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MassDevelopment Supports Non-Profits
• Financing programs for nonprofits:– Tax-exempt bonds– Real estate loans– Techdollars (technology upgrades)– Charter school loan guarantees– Community Service 501(c)3 loan fund – New Markets Tax Credits– Cultural Facilities Fund– Predevelopment loans
8
MassDevelopment Non-Profit Bond Financing FY 2007- FY 2009
• 180 issuances
• $4,550,257,717 in aggregate principal
• $8,716,267 in fees to MassDevelopment’s General Fund
• 2,921 jobs created
9
MassDevelopment General Fund and Restricted Loan
Funds FY07-FY09
• 183 loans/guarantees
• $120,388,255 in aggregate principal
• 3,640 new jobs created
• 5,483 jobs retained
10
MassDevelopment General Fund Loans / Guarantees FY2007-FY2009
• 85 loans/guarantees
• $54,432,791 in aggregate principal
• 1,528 new jobs created
• 3,044 jobs retained
11
MassDevelopment Non-Profit Lending FY2007-FY2009
• 48 loans/guarantees
• $32,421,812 in aggregate principal
• 178 new jobs created
• 2,398 jobs retained
• $45MM New Markets Tax Credits for non-profits
12
MassDevelopment Small Business Lending FY2007-FY2009
• 135 loans/guarantees
• $87,966,443 in aggregate principal
• 3,462 new jobs created
• 3,085 jobs retained
13
MassDevelopment Integrated Economic Development Program
• Surplus / Blighted Property– Kerr Mill / ATMC, Fall River– 100 Cambridge Street, Boston– Northampton State Hospital, Northampton– Former Fort Devens, Harvard, Ayer and Shirley– GSA Court House, Springfield
• Planning / Development– Chapter 43D Services– Cities and Towns Initiative / Predevelopment Services /
Municipal Consulting Services
14
MDFA’s Integrated EconomicDevelopment Program
Surplus/Blighted Properties
Planning/Development
Business support/ Investment
Barrier Elimination
15
Integrated Approach in Fall River
Surplus/Blighted Properties
Planning/Development
Business Support/ Investment
Barrier EliminationKerr Mill, Fall River
- Land Assembly- Demolition
- Road- Utilities- Building Construction- Planning
- Asset Management - Loans- Bonds - Marketing/Sales
- Remediation- Permitting
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Kerr Mill -> South Coast Research and Technology Park
• Current Status– 151 Martine St. fully
occupied• UMass anchor tenant • Celldex Therapeutics
– Meditech facility occupied
– More than 500 jobs
• MassDevelopment investment: $13.5M
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1550 Main Street, Springfield
• Former federal courthouse that could have gone dark
• Worked with City, State, Baystate, and federal government to structure deal
• Will be fully tenanted with public/private mix
• MassDevelopment investing $6M
18
100 Cambridge Street
• Abandoned sick building• Gutted, renovated, and
now wrapped with housing/retail
• Complex bond financing on a ground lease
• ½ private leases• State gets office space,
ground + contingent rent• MassDevelopment
investment: $22M
19
Village Hill Northampton
• Redevelopment of State Hospital site into housing and commercial spaces
• $29 million+ project• MassDevelopment investment:
$6.2M
20
Devens
• Redevelopment of former army base through:
– Cleanup and new infrastructure
– New businesses– Housing– MassDevelopment
direct investment of $10M for Evergreen Solar
21
Chapter 43D
• Met with 94 communities– Provided technical assistance to 42 communities– Provided predevelopment/municipal consulting
services to 15 communities– Funding 14 communities c. 43D grants
• Committed $3M in FY09 and $850,000 in FY10 to cover 43D costs at EOHED
22
Federal and State Grants Awarded to MassDevelopment or Partner
Communities Since 2007
• $6,280,740 federal funds with 1,300 new jobs created
• $23,659,885 in state funds with 2,001 new jobs created
• Representative projects/communities: Otis/MMR, Devens, Lawrence, Springfield, Lee, Gloucester, Athol
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MassDevelopment Contributions at Request of Governor or Legislature
• $2M Greenway• $3.85M Chapter 43D FY08-09• $2M Office of Small Business and
Entrepreneurship FY09-10• $500,000 Regional Planning Grants FY09• $5M new non-profit loan fund• $1M to WMEF and SEED• $3M Cultural Facilities (FY11 H2)• $700,000 Office of Small Business (FY11 H2)• $335,000 43D/EOHED (FY11 H2)