A Case Study in IDB Finance:
Serving Expanding Manufacturers Through the Use of Industrial Development Bonds (IDBs)
IDBs made a big impact in 2006 across the country. One such case is in Missouri where CDFA member Stern Brothers & Co. assisted a local issuer with the financing of a major IDB to help expand a local manufacturers enterprise. The results speak for themselves and prove once again that IDBs are the premier development finance tool for assisting small to medium sized manufacturers.
IDBs Remain Popular, Spurred by Significant Legislative Changes
– Capital Expenditure Limitation Increase Already Paying Dividends for Issuers –
– CDFA’s Legislative Agenda On Track with Industry Needs –
In December, CDFA surveyed several hundred issuers throughout the country to gauge their use of Industrial Development Bonds (IDBs) in 2006 and gather insight into the legislative challenges facing the use of this important economic development tool. The survey also sought input on the impact that the increase in the capital expenditure limitation is currently having and will have in the future on the issuing agency’s IDB program. The results clearly validate the importance and timeliness of the increase passed by CDFA in May.

December 2006 Headlines:

Seminole Tribe Receives Negative IRS Rulings
Posted on Friday, December 08, 2006
By Alison L. Mcconnell

Be Wary Of Bid-Rigging, Players Warn
Posted on Wednesday, December 13, 2006
By Matthew Hanson

Enforcement: Court Documents Show What Bid-Rigging Looks Like
Posted on Tuesday, December 19, 2006
By Matthew Hanson

California Cities Eye Renewable Energy Utilities
Posted on Friday, December 15, 2006
By Jackie Cohen

Enforcement in Limelight
Posted on Tuesday, December 26, 2006
By Alison L. McConnell

Congress Approves Extension of New Markets Tax Credits Through 2008
In December, Congress approved HR 6111 the Tax Relief and Health Care Act of 2006. The bill includes an extension of the New Markets Tax Credit through 2008 with additional credit volume of $3.5 billion. In addition, the legislation also includes a provision to encourage the use of the Credit in non-metro areas. The President is expected to sign the bill.


Congress Approves, Broadens and Extends Brownfield Tax Incentive
Congress has approved language related to the brownfields tax expensing incentive, broadening and extending it to December 31, 2007 and making the incentive retroactive to last December. The brownfield tax credit, one of the strongest brownfield redevelopment tools available from the federal government had expired in 2005. Several groups, including CDFA, had been working to support an extension of the program and this legislative victory will allow projects and expenditures paid/incurred after December 31, 2005 to be eligible for the tax credits. The bill also broadens the use of the credit to now include petroleum cleanups.
CDFA Quoted in Albuquerque Journal TIF Article
Albuquerque, New Mexico is considering a major TIF redevelopment project that will impact a large area of the community. The TIF proposed for Mesa del Sol was featured in the Sunday, December 10, 2006 edition of the Albuquerque Journal. CDFA was interviewed concerning the general use of TIF and provide some historical information to the author in understanding how TIF has and is being used around the country.


CDFA Cited in The Journal News
Yonkers, New York is debating the use of TIF for a major, $3.1 billion, public improvement project in the city’s downtown. The project will transform Yonkers and CDFA was cited in a December 10, 2006 article concerning the project. The citation appears as a factual reference provided by CDFA on the use of TIF nationally and is evidence of the Council’s growing presence as an expert in the TIF industry.


Featured Resource: TIF Guidelines for Communities
TIF Guidelines Can Help Streamline Process, Improve Community Buy-In
As part of the CDFA TIF Policy & Practice Symposium in November 2006, a panel of experts discussed local TIF policy guidelines and standards. The panel discussed the best practices that communities should consider when adopting TIF guidelines and policy considerations. Maurice Strul from the Allegheny County Department of Economic Development provided the following guidelines as an example of this positive TIF practice. These general guidelines have been developed by the Allegheny County DED the Redevelopment Authority of Allegheny County in order to provide developers and all other interested parties with an understanding of the County’s and RAAC’s guidelines and requirements for TIF.
Auction Rate Securities
This article discusses auction rate securities (ARS). There are two primary variable interest rate products in the municipal marketplace. These are ARS and variable rate demand obligation bonds (VRDO). Issuers need to understand how ARS work and their advantages and disadvantages relative to variable rate demand obligation bonds (VRDO). This article also provides a number of resources on ARS now available through the BMA (now know as SIFMA).

JOB POSTINGS:

Infrastructure & Development Finance Specialist
National Association of Home Builders
Washington, DC


Call for Entries-
2007 Practitioner’s Showcase: Best TIF Program
Deadline March 30th
Last year, CDFA introduced its new annual award program called the Practitioner’s Showcase. The event, which included a live audience vote to select the country's Best IDB Program, was a resounding success. For 2007, the Practitioner’s Showcase is back featuring a different development finance topic.

This year CDFA will use the Showcase to recognize outstanding development finance programs and success stories from the tax increment finance industry.

The 2007 Showcase highlights the nation’s finest and most successful TIF Programs. CDFA is looking for excellence, efficiency and expertise in creating critical mass, marketing programs, executing projects and raising the awareness of this important economic development finance tool. TIF has emerged as the leading economic development finance tool in the country. As the use of the tool has grown the creativity and implementation of this mechanisms has increased ten fold. For 2007 CDFA is looking for the Best TIF Program in the country.

The Advanced Bond Finance Course (February 22-23, 2007 in Washington, DC) provides in-depth information about municipal finance issues, techniques, and tools of interest to practitioners with an understanding of tax-exempt financing. This course discusses and explores advanced topics and techniques being used across the country today. >>>LEARN MORE
The Annual Summit (May 22-24, 2007 in Miami, FL) is the premier development finance industry event of the year. Featuring dozens of sessions, workshops, distinguished speakers and presentations on a wide variety of finance topics, the Summit provides economic developers, finance professionals, private sector leaders and community advocates a prime opportunity for networking, education and information sharing. >>>LEARN MORE


Boynton Beach Community Redevelopment Agency - Boynton Beach, Florida

City of Miami - Florida

Fifth Third Securities - Cincinnati, Ohio

Hawes Hill Calderon LLP - Houston, Texas

Stark Development Board, Inc. - Canton, Ohio

Upper Illinois River Valley Development Authority - Springfield, Illinois



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