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Advocating For Economic Change 101From to

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F.A. Johnson, II, Esq. is a second generation managing member of the F.A.Johnson Development Group. He has twenty-five years experience in theplanning, financing, construction and management of large-scalecommercial, economic development, & community development projects.A graduate of Emory University School of Law, He has firsthandexperience handling land acquisition, relocation, demolition,rehabilitation, and new construction activities. He is the author, of VisionTo Fulfillment: The Non-Profit Developer’s Training Manual, a capacitybuilding guide for Public Private Partnerships. F.A. frequently speaks at thenational level on development related topics for organizations such as theInternational Council of Shopping Centers (ICSC), National League ofCities (NLC), and Auburn University Economic & CommunityDevelopment Institute.

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Presented By:

Marilyn Drayton is Senior Vice President and Community DevelopmentManager for Wells Fargo. She has responsibility for the Florida Region,including over 640 Store locations and 5 regional markets. She manages thecompany's community development strategic initiatives, and programmaticactivities impacting affordable housing, neighborhood stabilization/revitalization, community lending and investments, and relationshipmanagement with key community stakeholders. She is active in hercommunity and serves as a member of various professional boards andindustry committees including the Florida Housing Coalition, the FloridaAlliance of Community Development Corporations, Community AffordableHousing Equity Corporation, and Women In Local Leadership (WILL) of theNorth Florida United Way.

Advocating For Economic Change 101

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FA Johnson Consulting Group, Inc.Harbison: Our Flagship ProjectOver 40 years of working with Non-Profits, Municipalities, and Private DevelopersNeighborhood and Downtown RedevelopmentCommercialRetailMixed UseResidential (work force housing & market rate) Single Family Multi-Family (Market rate & tax Credit)Institutional

Strength In working with Public/Private PartnershipsOver 25 CDC’s organized and Managed over 13 CDC’s

From to Advocating For Economic Change 101

FA Johnson Consulting Group, Inc.

Our Clients Include...

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P.A.S.T.O.R.S., INC. P.A.S.T.O.R.S., INC.

is a Public Private Partnership between United Methodist, African Methodist Episcopal, Presbyterian, Reformed Episcopal, Baptist, and other faith based leaders working in concert with Neighborhood Presidents, Financial Institutions, and local units of government to create meaningful and lasting change in the community.

Our vision includes the opportunity for individuals and families to enhance their dignity by achieving independence and productivity in order to empower them to become integrated contributing members of their communities.

www.PastorsInc.com

OUR VISION:OUR VISION:

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Revitalization – Empowerment - Development

Economic Development And Community Advocacy

New Israel Reformed Episcopal Church

76 Simons Street Renal Rehabilitation

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New Israel Reformed Episcopal Church76 Simons Street Renal Rehabilitation

Revitalization – Empowerment - Development

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• Tell me and I forget.

• “Teach me and I remember.• Involve me and I learn.”- Benjamin Franklin

Action Plan Items (Begin With End In Mind)

Florida Economic Development Initiative

Realtist Renewal Committee & Wells FargoBeing A Change Agent • Identify 2 Projects Per City

• In Conjunction With Wells Fargo Regional Contacts• Capacity Building: Creating Capacity At Local Level

• Matching Members up With Experienced Project Managers• Revenue Generation: NAREB Members Doing Business Together:

• 3-4 NAREB Members Involved In Each Project (i.e. fees/revenue) Goal• Revenue (i.e. Fee For Service)

• Contribution To Local Board Chapter in the City of the Project• Contribution To State Chapter

• Goal: At least 1 Project Per City Completed by 2nd Annual Summit• Goal: “Shark Tank” Style Presentation of additional projects by2nd Annual

Summit

ü For A Copy of Handouts Text “NEEDTOKNOW” to 66866

Advocating For Economic ChangeBasics For Community Developers

The Basics: Stakeholder Analysis Barrier Identification The Implementation

Process (How To Make Partnering Decisions)

Strengths/Weaknesses Assessment

Action Steps(Creating The Plan)

Capacity Building

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Catalyst Project(s) Identification

Identify Point(s) of BeginningForming the Development Concept

Mission, Vision, Defining the Project

Feasibility Study

Testing The Market Viability

Project Construction

Creating/ReviewingMaster Plan (if applicable) Planning &Financial

Pre-Construction/Pre-Development

Operation & Management

Facility Management

First A Few Definitions

Non-Profits:• IRS Status • CDCs• CHDOs /CBDOs• CDBG, HOME,

HOPWA

• Market Rate Vs. Subsidized

• Grant, Deferred Forgivable Loan, Loan

• Pre-Development Risks & Range of Potential Expenditures

• Price vs. Cost

What is Affordable Housing?• Area Median Income• 25-30 % Household

Income• HOME Income/Rent

Limits

Federal Strings:• Procurement• Monitoring• Reporting• Eligibility

Others??

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üWhat will be developed?

üHow it will be Developed?

üWhen it will be Developed?

üWho Will Control the Development?

What Do You Want To Accomplish?

The Armstrong Galleria Augusta, GeorgiaBig Brothers Big Sisters Headquarters

Roanoke, Virginia

Preparing For Community Advocacy ConsiderationsSetting The Stage For Development: Key Ingredients To A Successful

Economic Development ProjectØ Leadership: Capturing and Setting The VisionØ Partnership: Forge A Healthy Public/Private PartnershipØ Empowerment: Community Support

How To Get EngagedØ Develop Relationships By Getting Active

Ø Attend Florida Conferences For CDCsØ Contact Neighbor works Affiliates (10)Ø Florida Housing CoalitionØ Others ??

Ø Do Your HomeworkØ Which Communities Have Unspent State or Federal FundsØ Take What You Hear Today and Apply It (Follow up)Ø Where Are Your Partners Targeting Their Money?

Ø Understanding it’s a Competitive ProcessØ Political Priorities – Check Your Local Comprehensive Plan

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Preparing For Community Advocacy Considerations

Issues To Consider When Undertaking Economic Development ProjectsØ Understand Local Market ForcesØ Develop An Implementation Plan (Strategic Plan)Ø The Value of A Public Private PartnershipØ Understanding The Development ProcessØ The Financing Package (Business Plan)Ø Lessons Learned With Universal Application

PRE-DEVELOPMENT (PRE-CONSTRUCTION) DUE DILIGENCE

Process ComponentsØ Capacity Building/Board & Community TrainingØ Neighborhood Grass Roots OrganizingØ Determine Structure To Carry Out RedevelopmentØ Developing the VisionØ Project Assessment & AnalysisØ Master PlanningØ Feasibility & Market AnalysisØ Project CoordinationØ AIA/Engineering Oversight: Ø Civil, Mechanical, Structural, & ElectricalØ Site & Traffic; Surveying, Soil borings/EnvironmentalØ Creation of a Business PlanØ Land Acquisition and InfrastructureØ Management/Administration of DevelopmentØ Housing Marketing/Sale Program

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Lender ParticipantsDevelopment Products

Non-Profit Corporation “CDC”

Management/Development Consultant FA Johnson Consulting Group, Inc.

Legal Cost Estimates Engineering

Special Purpose Development LLC Feasibility & Planning Design

Financing Lenders

Economics

Architect

General Contractor

ContractorContractor

Construction Management

Sales/Marketing Program

Elected Officials

Constituency

NON-PROFIT COMMUNITY DEVELOPMENT CORPORATIONSuggested Organizational Structure

Preparing the Action Plan

Project Planning: •Development of an Action Plan/ Predevelopment Activity•Outline Criteria

Project Launching•Preparation of Design & Construction Contract Provisions•Develop a Master Schedule•Total Project Budgeting

Design Phase Management•Request for Proposal (RFP) Preparation•Selecting & contracting with a design consultant

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Pre-Development (Pre-Construction)“Take a Drive of the Dirt”

Our Definition of Development:

Development is how you get the bricks & mortar financed.

Commercial Development Projects Norfolk, Virginia

Financing Your Initial Project

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Financing Your Initial Project

The project may need some enhancement (to look more conventional):

Ø Strengthen Collateral: Guarantees (USDA/HUD) and Loan Subordinations

Ø Reduce Expenses: Grants for Equity, Interest Rate SubsidiesØ Provide Management Assistance: Technical AssistanceØ Shift Transaction Costs/Risks: Partnering to have a Track RecordØ Increase Revenue

Common Financing Issues: Construction FinancingBridge FinancingDirect Project EquityLoan ParticipationPermanent Financing

Proceeds Needed For:Pre-DevelopmentLand AcquisitionConstruction Soft Costs

Alternative Financing Options:

Acquisition/Rehab Augusta, Georgia

Financing Your Initial Project

Federal Home Loan Bank Non-Traditional LendersUSDA Rural Development (Various) NTMC/Bond FinancingState Housing Finance Authority Other…

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Financing Your Initial Project Lincoln Terrace Roanoke, Virginia

Duplex Mixed-Income RentalSingle Family

Single Family

Rental, Homeownership, & Lease- Purchase

Financing Your Initial Project :Representative Examples

Scattered Site Single Family Housing

Queens Court

In-Fill

1200 Melrose Avenue

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Implementing the Plan

Schedule Management: •Review Detailed Construction Schedules•Review Requirements for Bid Packages

Bid/Award Management•Preparation of final bid packages•Stimulate Bidder interest•Conduct Pre-Bid Conference•Evaluate Bids & Make Recommendations

•Prepare & award Contract

Implementing the Plan

Construction Management:•Percent Complete Reporting•Progress Reports •Change Orders Control & Processing•Inspections Financial Management•Status Reports on Payments•Change Order Accounting & Budget Impact Analysis•Cash Flow ProjectionsGeneral Consulting•Consulting on non-specific tasks as requested

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Development Management

The management of construction programs or projects, beyond that provided by traditional architectural, engineering or construction management contracts, from inception to completion.

Operational Strategic AssessmentBoard Training:The Basics (Stakeholder Analysis)

Strengths/Weaknesses Assessment

Barrier Identification

Action Steps(Creating The Plan)Including Capacity Building

The Implementation Process (How To Make Partnering Decisions)

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Operational Strategic AssessmentThis page contains a picture that can be switched out for another graphic by right Responding to these questions will help formulate the Initial Action Plan Format Work Tasks:

Where are you going? (Mission)How do you get there? (Strategies)What is your blueprint for action? (Budget)How do you know if you are on track? (Task(s))Who are the key stakeholders? (Politics)tly on the image and clicking “change picture.” Replace your text here to give a description.

Operational Strategic Assessment

Work program generally includes five (5) major (tasks) areas:

1. Establish Separate Non-Profit Entity (part of Strategic Assessment)2. Capacity Building Board Training3. Strategic Plan Implementation (Identify Catalyst Projects); This

would include a Review/Modify Master Plan to Identify a Point(s) of Beginning

4. Socio-Demographic and Real Estate Market Analysis to support Catalyst Projects

5. Packaging and Financing; This includes identifying and recommending opportunities and potential options relative to Financing and other grant related options

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• Tell me and I forget.

• “Teach me and I remember.• Involve me and I learn.”- Benjamin Franklin

Action Plan Items Florida Economic Development Initiative

Realtist Renewal Committee & Wells FargoBeing A Change Agent • Identify 2 Projects Per City

• In Conjunction With Wells Fargo Regional Contacts• Capacity Building: Creating Capacity At Local Level

• Matching Members up With Experienced Project Managers• Revenue Generation: NAREB Members Doing Business Together:

• 3-4 NAREB Members Involved In Each Project (i.e. fees/revenue) Goal• Revenue (i.e. Fee For Service)

• Contribution To Local Board Chapter in the City of the Project• Contribution To State Chapter

• Goal: At least 1 Project Per City Completed by 2nd Annual Summit• Goal: “Shark Tank” Style Presentation of additional projects by2nd Annual

Summit

ü For A Copy of Handouts Text “NEEDTOKNOW” to 66866

www.FAJohnsonDevelopmentGroup.comFAJohnson@FAJohnsonDevelopmentGroup.com

1520 Senate Street, Suite 177Columbia, SC 29201

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Questions?Feel free to contact us.