1 / 13

Opportunity Funds In Action

Discover how M&S Development utilizes Opportunity Funds and various funding sources to empower community revitalization initiatives. Learn about the benefits, requirements, and success stories of their projects.

kingsbury
Download Presentation

Opportunity Funds In Action

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Opportunity Funds In Action

  2. Agenda • Who we are • What we do • How we do it • What does this have to do with Opportunity Zones?

  3. Who We Are Bob Stevens, P.E. CNU, LEED AP Principal Katie Stuart-Buckley Director of Project Development Skye Morse Investment Director Principal Martha Ratcliffe Senior Project Manager Gabrielle Ciuffreda Project Manager

  4. What We Do • Development Consultants • Deep Understanding of Rural Economies • Dedicated to Empowering Community Revitalization

  5. So What? Reality of Rural Development Average Project Cost: $300/sf Average Project Value at Completion: $100/sf Local rents will not support a “typical” return on equity given the implied risk These projects just don’t pencil out

  6. How to cover the gap? • Tax Credits are a key ingredient: they make the impossible, possible • Banks lend based on appraised value at completion • Grants and Tax Credits will get you part way there • Not economically viable without community investment

  7. Utilizing Every Source Available • Community Equity • Leadership Equity • Preferred Equity • Debt • Traditional Senior • VEDA Junior • Town Loan • Environmental Loans • Tax Credits • Federal Historic • New Markets • VT Downtown • Grant Funding • CDBG • Efficiency Vermont • Brownfields • Affordable Housing • Public / Private Partnerships • Tax Increment Financing • Tax Stabilization • Municipal Infrastructure Support

  8. Community Enabled Development • Community Leaders as Owners • Community Leaders as Bankable Tenants • Community Leaders for Tenant Recruitment • State Offices or other Institutions as Tenants

  9. Case Study - Putnam Block

  10. Case Study - Putnam Block

  11. Opportunity Zone Funds Requirements • Untaxed Capital Gains • Reinvested within 180 days (ish) • Qualified Opportunity Zone Investments Benefits • Deferral of original capital gains tax until 12/31/26 • 15% Step up in basis if held for at least 7 years • Gains from Opportunity Zone Fund are untaxed Community Investment + Tax Avoidance = 

  12. Case Study – Putnam Block

  13. M&S Development Empowering Community Revitalization 802-246-2100 95 Main Street PO Box 1586 Brattleboro, VT 05302 www.msdevelopmentllc.com Skye Morse Investment Director Principal Katie Stuart-Buckley Director of Project Development

More Related