city of seattle
DESCRIPTION
City of Seattle. Recovery of the Rainier Valley NCDA June 2007. Rainier Valley. 60% low / moderate income households 40% foreign-born 82% non-Caucasian 15% of students passed W.A.S.L. Seattle CDBG $35 M. Seattle GF $7.8 M. King County & Sound Transit $7.2 M. - PowerPoint PPT PresentationTRANSCRIPT
City of Seattle
Recovery of the Rainier Valley
NCDA June 2007
Rainier Valley
• 60% low / moderate income households
• 40% foreign-born
• 82% non-Caucasian
• 15% of students passed W.A.S.L.
Seattle CDBG
$35 M
Seattle GF
$7.8 M
King County & Sound Transit
$7.2 M
Rainier Valley Community
Development Fund
• CBDO
• Mitigate Construction Disruption
• Invest for Development
Office of Economic Development
RVCDF Products
• Supplemental Mitigation
– Business Interruption Payments• cover loss of revenue due to construction activity
– Business Re-establishment Payments• permanent relocation
RVCDF Products
• Business Incentives
– Business Expansion Loan• lower rates, longer amortization
– Interest Subsidy Grants• weak credit histories, limited collateral• ½ of interest on CDFI loan
RVCDF Products
• Real Estate Development
– Real Estate Financing• Gap financing• low rates, longer amortization• CDF participates in cash flow
– Site Assembly• ease carrying costs
Supplemental Mitigation(March 2007)
• 292 Total eligible businesses
• 159 received financial assistance
• 52 chose not to apply
• 38 moved / closed (no assistance)
• 2 applications in process
• $9.67 M approved
Supplemental Mitigation
• Chuy El Mexicano– Since 1999– Placed in storage for 2 years; relocated– Before relocation, 2002, $182,000 in gross
sales– $127,000 in relocation / re-establishment
costs (tenant improvements)– $70,000 business interruption payments– $50,000 loan assisted with interest subsidy
Supplemental Mitigation
• Express Tires– Five employees– Gross revenues $800,000 down to $500,000– Construction of large retaining wall cut access
down to one driveway (out of three) for a two-year period
– $53,000 in business interruption payments
Development Financing
• $1.2M site assembly loan completed– 75 apartments above 7,500 square feet of
retail, and 9 townhomes by 2009
• $2M development loan in process
Lessons Learned
• Partners need to understand CDBG regulations
Seattle CDBG
$35 M
Seattle GF
$7.8 M
King County & Sound Transit
$7.2 M
Rainier Valley Community
Development Fund
• CBDO
• Mitigate Construction Disruption
• Invest for Development
Office of Economic Development
Lessons Learned
• Partners need to understand CDBG regulations
• Concentrate NRSA resources into one area to make a big difference
Resources
• www.rvcdf.org
• www.soundtransit.org
• www.seattle.gov/humanservices
• www.seattle.gov/economicdevelopment
• 206-615-1717