Pennsylvania city development project centers on financing
2/4/2014 | Real Estate Blog
According to officials of one Pennsylvania community, a development project promises to bring in around $210 million in investment funds for the city. The city hopes to finance the redevelopment with financing incentives for private developers that take on various city projects. The incentives are then to be repaid through revenues generated in the 130 acre developed area.
Determining how much revenue will actually be brought in appears to be a challenge. City officials will need to determine what is currently being generated to get a better idea. This could include making inquiries with each property owner at the site.
One contractor with the city stated that accurate data was important. This could include tax information reporting. “The money only comes back into your community if they are reporting and they are reporting on time,” a spokesperson for this contractor stated.
The authority board for this development has voted unanimously to fund the project. This authority plans on providing a funding package of $5 million to replace fixtures, furniture and equipment at the county convention center. This money will to come from the sale of city bonds that will be repaid over a 20 or 30 year period. The convention center already is facing $64 million in construction debt.
Experienced real estate attorneys are needed to make certain planning of such a project is done correctly. As one can see, there are a great many considerations that need to be taken into account concerning any land use and development project. Especially important is figuring out how such a development will be financed as this is almost never a simple undertaking.
Source: My Lancaster News, “Lancaster begins making CRIZ promise a reality,” Bernard Harris, Jan. 28, 2014