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| | Community
Development District Plans ("CDD Plans")...
The
Community Development
District Financing Plan is an alternative to the more commonly used TIF District Financing
Plan approach to providing additional funding resources.  Rainmaker
Marketing Corporation also offers a commercial
real estate investor syndication program that may be accessed for the
purposes of financing the pre-construction phase, construction phase or post
construction phase capital project costs. The most
common funding applications for the Community Development District (CDD)
Financing Plan approach are:
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Planning costs
(pre-construction designs, engineering, feasibility studies, etc.). |
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Land assembly costs (option or
purchase).
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Infrastructure development
costs (roads, utilities, site amenities, etc.). |
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Direct construction costs
(building and improvements construction).
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Reimbursements to businesses
affected by economic development programs. |
Community Development District Financing Plans offer a
somewhat broader application of funds than TIF plans (not to
be confused with TIC Plans), but these uses are in fact
limited from state to state, so it is necessary to understand the process in
each state and limitations imposed. CDD's are mainly formed to deal with
the dreaded issue of urban blight, as this is the focus of the statute in most
cities, meaning:
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There has to be a finding that
blight exists. If the subject area is already receiving federal
assistance, then it is considered a blighted area and a CDD can be formed with
the municipality's approval. |
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There has to be a finding of
blight being an imminent issue and/or property and economic opportunity for
low to median income households is being or may be compromised if it is not
addressed. |
The most common funding tool
used for CDD's is a bond float. The bond float is priced according to
market conditions and is normally offered at a premium over rated municipal
bonds. Generally, maturities of up to 30 years are available and the costs
are reasonable in terms of their impact on the overall capital funding structure
and budget.
Find out more about why you
should be looking at a TIF, a CDD, or even abandoning these strategies in lieu
of something more attractive and efficient. Start things off with a free
initial consultation by contacting Rainmaker today. If you need to acquire
financing much sooner, then consider having Rainmaker undertake a commercial
real estate fractional ownership syndication.
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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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