presentation to joint committee on economic development and emerging technology 2 23 10
DESCRIPTION
A presentation my MassDevelopmnet's CEO Robert L. Culver to the Joint Committee on Economic Development and Emerging Technology.TRANSCRIPT
The Joint Committee on Economic Development and
Emerging Technologies
February 23, 2010
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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
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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)
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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
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Where We Are
• Boston• Devens• Fall River• Lawrence• Springfield• Worcester
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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
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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
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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
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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
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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
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MassDevelopment Small Business Lending FY2007-FY2009
• 135 loans/guarantees
• $87,966,443 in aggregate principal
• 3,462 new jobs created
• 3,085 jobs retained
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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
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MDFA’s Integrated EconomicDevelopment Program
Surplus/Blighted Properties
Planning/Development
Business support/ Investment
Barrier Elimination
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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
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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
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Village Hill Northampton
• Redevelopment of State Hospital site into housing and commercial spaces
• $29 million+ project• MassDevelopment investment:
$6.2M
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Devens
• Redevelopment of former army base through:
– Cleanup and new infrastructure
– New businesses– Housing– MassDevelopment
direct investment of $10M for Evergreen Solar
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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
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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)