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- A federal rent subsidy program that provides monthly rental assistance to
- low-income individuals living in privately owned units. The rents must be within HUD limits, and
- the units must meet HUD Housing Quality Standards. Section 8 can be used in cooperatives to
- help lower-income households pay their monthly carrying charges.
Sector Plan/Small Area Plan
- It focuses on a manageable area (a section of a community) and considers the land use, transportation, environmental, and infrastructure needs unique to
- that portion of the community. It
- avoids both the generalities of a comprehensive plan and a single-issue,
- narrow planning outlook.
The pledging of assets to cover a liability in case of default.
- The chance that the value of the pledged collateral on an investment is less than
- the value of the investment.
Equity money supplied to help a company get off the ground. The money is almost always supplied by an
- entrepreneur and his/her family, friends, and relatives. Used to help attract (leverage) other
The exchange of goods, services, or ideas between two parties.
- A method used to examine a local area’s basic industries n terms of their
- growth and decline, relative to national or regional trends.
A fund to which contributions are made, periodically for the purpose of ultimately paying debt or replacing assets.
Site Location Assistance
- Local governments provide new, expanding, and relocating businesses with assistance
- for locating the sites that fit their facility’s needs. These services include providing
- information on sites and organizing visitation programs.
Small Business Administration (SBA)
- Founded in 1953, SBA’s mission is to “aid, counsel, and protect, insofar as is possible, the interests of small business concerns.” Its charter also mandates that the SBA
- ensure small businesses a “fair proportion” of government contracts and sales
- of surplus property. Since its
- inception, the SMA has delivered more than 13 million loans, loan guarantees,
- contracts, and other forms of assistance to small businesses.
Small Business Investment Company (SBIC)
- Privately owned and managed for-profit investment firms that use their own capital,
- plus funds borrowed at favorable rates with an SBA guarantee, to make venture
- capital investments in small businesses.
- A venture capital firm licensed and monitored by the SBA. The SBIC can be capitalized with SBA funds.
- The efficient use of all available assets.
- According to the American Planning Association, smart growth involves
- efficient land use; full use of urban services; missed use; mass
- transportation options; and detailed, human-scaled design.
- A comprehensive development strategy that makes efficient use of land,
- utilizes existing services and infrastructure, and promotes a variety of
- transportation and housing options.
Development costs for various services, including architecture and engineering fees, construction interest, loan fees, insurance fees, legal and accounting fees, and permit fees. . . . These costs typically include a developer fee or payment for the developer's professional time.
- Capital provided in the form of a loan for which payment is contingent on available cash flow. This debt is typically
- provided by a public sector entity, and usually structured with very liberal terms regarding principal repayment, interest rate, and maturity.
The entity's ability to meet interest expenses and obligation associated with long-term debt.
Special Assessment Districts
- Areas designated by a taxing authority to be assessed for tax purposes on a scale that differs from the rest of the taxed jurisdiction. Property in these districts may be taxed
- differently all together. They may be required to pay “special” taxes more reflective of the greater benefit earned
- by some public expenditure in the district.
Special Assessment Funds
Costs of a project that benefits a specific group of properties may be assessed to those individuals and accounted for in the special assessment fund.
Uses that require special review, e.g. an electric utility transformer in a residential neighborhood. Typically reviewed by a zoning board.
Special Improvement Districts
Mechanisms where local business and/or residents agree to voluntarily pay an additional tax, so local governments can finance and implement improvements within a specific and limited area. (Similar to Business Improvement Districts)Also known as Business Improvement Districts (BIDs) or Business Improvement Zones. It is a limited geographic area, primarily commercial in nature, designated to receive a range of enhanced services to improve the local business climate. This process is managed by an organization of local businesses. A BID organization coordinates and directly enacts specific activities and programs, such as marketing and promotion, maintenance, security, policy advocacy, and small-scale capital improvements. SIDs are also referred to as special tax districts, public investment districts, and single purpose districts.
Special Revenue Funds
Funding from sources that specify that money goes to a certain use, for example revenue from a special tax district created to fund infrastructure improvements in that district.
Uses allowed by zoning subject to special use permit: churches, theaters, etc. If limited in number, these uses are appropriate for a given zoning classification
Development that occurs when a facility is built prior to securing a tenant or all tenants. It provides a marketing tool that can appeal to tenants needing space in the short-term.
Storm Water Detention
A storm water system that delays the downstream progress of storm water runoff in a controlled manner, typically by using temporary storage areas and a metered outlet device.
Storm Water Retention
The amount of precipitation on a drainage area that does not escape as runoff. It is the difference between total precipitation and total runoff.
When a party, say the government, closes a street. A property owner can add the vacated or unused street to his or her existing commercial/residential property, increasing the value and size of the property.
The process wherein land is subdivided into two or more parcels for lease or sale. This process is also referred to as 'platting' and the subdivision map is called a 'plat' or 'plat map.'
A claim on a property, asset or repayment of a debt that is inferior to the interest of another party. Subordinate position can apply to all debt instruments.
Funds provided generally by government in the form of a grant, which reduces the cost of development or support ongoing operations.
Communities that lie outside of the city borders, yet either depend on, or maintain a direct link to the central city.
Development which does not destroy or eventually deplete a location’s natural resources. Sustainable development helps ensure a better, healthier living environment, which contributes to the quality of life in an area, one of the main goals of economic development.
A tool used in the economic development planning process to assess a communities Strengths and Weaknesses, factors from within a community that can be changed, as well as its Opportunities and Threats, factors from outside the community that cannot be changed.
The sector of a total market that an organization has selected to serve, this audience meets the community's economic development goals and competitive advantages.
Focusing marketing effort on one or more segments within a total market.
Exemption or reduction of local taxes of a project for a specific period of time.The lowering rates on specific taxes, normally taxes owed on real or other property, below the rate commonly levied within the community.
A form of tax incentive that allows the recipient to reduce the amount of tax obligation by the credit amount.
The use of various tax relief measures such as tax exemptions, tax credits, or tax abatements to recruit and attract businesses to a community, or help local businesses expand.
Tax Increment Financing
A mechanism to capture the future tax benefits of real estate improvements to pay the present cost of those improvements. A local jurisdiction does this by freezing property tax assessments at a base year. In future years, all the tax revenue up to the base year assessment continues to go to the taxing jurisdiction (city, county, school district, etc.) However, incremental tax revenue collected from rising property values is allocated to the TIF district through its governing agency.
Includes aid with preparing grant applications, training staff, applying for loans, and marketing the product. It may also include assisting a small business to improve the design of its product or manufacturing process. Technical assistance is generally aimed at providing specific services that a small business typically cannot afford, or general business planning. Technical assistance can also be provided to organizations such as EDOs, community organizations or neighborhood organizations.
The cost of finishing out the building; these costs include carpeting, lighting, floorboards, etc.
Debt capital repayable according to a specific schedule. It includes medium and long-term loans.
Selecting one or more markets in which to introduce a new product or service and marketing program to observe and assess performance and what revisions are needed, if any.
Short-term credit or loan provided by a goods or service supplier to its customers; that is, the supplier does not demand advance or simultaneous payment for its sales.
Generally refers to the requirement for the lessee to pay for its share of the property's taxes, insurance, and operating expenses.
Low-cost financing with lower interest rates for projects too small to qualify for normal revenue bond programs. Bond proceeds are used as loans for acquisition of land, building, machinery, and equipment. The umbrella is a pool of small bonds of $1 million or less packaged into a larger bond and issued by the state or local economic development agency.
Includes all persons whose skills, education, or training qualified them for a higher skilled or better-paying job than they presently hold. It also includes persons only able to find part-time rather than full-time work in their fields.
The process of evaluating a potential borrower in terms of its creditworthiness, risks involved, and performance potential.
Urban Entertainment Centers (UEC's)
Development that tends to offer a combination of entertainment, dining, and retail within an appealing pedestrian often open-air, environment. In addition, these centers usually attract large numbers of tourists. Two key components of UECs are cinemas, in particular megaplex theaters, an restaurants.
Item costs that change directly and proportionately with changes in the production volume (e.g. utility bills); the opposite of fixed.
Variable Interest Rates
Interest rates that are tied to a money-market indicator, normally a U.S. Treasury bill, and moves up and down with that market indicator. Also called floating rates or adjustable rates.
Modifications to development standards (part of zoning ordinance that deals with measurable requirements for development: height limits, setbacks, seating capacity, etc.) Variances typically are used to address unique situations related to lot size, shape or topography.
An investment made where there is a possibility of very substantial returns on the investment, as much as 40 percent, within a short period. It is usually invested in dynamic, growing, and developing enterprises, not in start-ups. The capital is subject to considerable risk and uncertainty.
A definition based on family income as a percentage of an area’s median income. Different programs may set different percentages. According to Section 8 of the US Housing Act of 1937, a household that earns 50 percent or less of the median income for a family of the same size n that metropolitan area, as determined by HUD guidelines.
Voluntary Cleanup Programs
State programs that address obstacles in developing brownfields, recognizing that public health must coexist with economic development. VCPs promote brownfields redevelopment by integrating issues involving legal liability, technical requirements, and economic incentives.
A government payment to, or on behalf of a household, to be used solely to pay a portion of the household’s housing costs.
An agreement that gives the owner the option within a specified period of time to purchase equity capital.
Workforce Investment Act
Workforce Investment Act of 1998 is the federal government’s effort to adapt workforce training system to current economic conditions. The economic development impact of WIA includes 1) decentralizing decision-making to the local level; 2) allowing local businesses to determine skill needs; 3) adapting training to local growth patterns; 4) promoting inclusion of economic development principles in plans; and 5) requiring states to submit economic development plans with the WIA implementation plan.
Current assets of an entity including cash, marketable securities, accounts receivables, inventory, and prepaid expenses. Net Working Capital is current assets less current liabilities.
Worst Case Housing Problems
Unsubsidized, very-low-income renter households with severe housing problems. HUD is required to submit an annual report to Congress on worst case housing problems.
Legislation that maps and designates the various zones and their respective land uses. The regulation of land use by local zoning must be enabled by state legislation.
Geographic designations of land by categories of use; residential; heavy and/or light manufacturing, commercial, agricultural, institutional, etc.The regulation of use, shape, and bulk restrictions on development.