interfaith neighbors
TRANSCRIPT
National Center for Arts and Technology Feasibility
Analysis in Asbury Park, NJA Project for Interfaith Neighbors
The Community Development Finance Lab Team Task:
To determine the feasibility of building a National Center of Arts and Technology along a Springwood Avenue
Asbury Park is a Destination City With a Rich History of Music in the Jersey Shore
oRental AssistanceoMeals on Wheels oAffordable Housing oNJ Youth CorpoNeighborhood Revitalization
Interfaith Neighbors is a Versatile and Financially Stable Organization
The Gateway Zone in the The Springwood Avenue is the entryway to the West Side
The Amended Springwood Redevelopment Plan calls for the creation of
•Housing
•Retail
•A Park
•Public Space
The Gateway Zone Has Specific Building Design
Requirements
Residents in Asbury Park are at an Economic Disadvantage
US Census – 2005 – 2009 American Community Census
Residents in Asbury Park are at an Educational Disadvantage
51-66.9%
66.9-77.0%
77.0-84.7%
84.7 – 90.7%
90.7-100.00%
High School Graduation Rates
25% of people have not received a high school diploma or GED
Schools have not met Adequate Yearly Progress (AYP) goals as defined by No Child Left Behind Act of the U.S. Department of Education
US Census – 2005 – 2009 American Community Census
The NCAT Replication Process Helps Affiliates Design and Implement Programming
NCATs are Designed to Meet the Communities’ Educational and Vocational Needs to Enter the
Workforce
Manchester Bidwell
Careers in Healthcare Provide Living Wages
Living Wages in Asbury Park
One Adult One Adult, One Child Two Adults Two Adults, One Child Two Adults, Two Children
Living Wage $11.87 $21.41 $17.02 $26.59 $33.75
Poverty Wage $5.04 $6.68 $6.49 $7.81 $9.83
Calculator by the Pennsylvania State University http://www.livingwage.geog.psu.edu/places/3402501960
NCAT Programming Aligns With Job Creation in Monmouth
County Industries in
Monmouth County with the Largest
Number of Projected
New Jobs for 2018
New Jersey Department of Labor
Local Economic Development Strategy and County-wide Job Opportunities Should Inform Programming Design
Health & Medical ServicesMusic, Entertainment & Recreation
APCAT Operating BudgetYouth Program Students / Year
60
Adult ProgramStudents / Year
30
Manchester Bidwell
Youth Progam Students / Year 60
Operating Assumptions for Three yearsAssumptions Planning Year 1 Year 2 Year 3
Youth ProgramsDigital Arts PC $963 57,780 57,780 57,780 173,340 Design $963 57,780 57,780 57,780 173,340 Adult ProgramsMedical Coding $2,067 62,000 62,000 62,000 186,000 Admin Personnel* $207,080 116,064 207,080 207,080 207,080 248,000 Fees to MBC* $150,000 150,000 150,000 150,000 150,000 600,000
Rent* $7.58 200,202 200,202 200,202 600,605
Capital CostsEquipment* 10 267,496 10 Furniture & Fixtures* 11 297,000 138,600 435,611
Subtotal 2,416,907 Overhead`15% of all costs* 15% 362,536
Total 2,779,443 Total Cash Required 830,560 734,842 734,842 873,442
Average Cash Required Per Year 793,421
Models 1-3 Build-Out and Financial Sources
Overview of ModelsLow-Income Housing 13,200SF X $190
= $2,508,000
Community Space (APCAT) 13,200SF X $150 = $1,980,000
Community Space (APCAT) 13,200SF X $150 = $1,980,000
Community Space (APCAT) 13,200 SF X $150 = $1,980,000
Community Space (APCAT) 13,200 SF X $150 = $1,980,000
Commercial 13,200 SF X $150 = $1,980,000
Low-Income Housing 13,200SF X $190 = $2,508,000
Low-Income Housing 13,200SF X $190 = $2,508,000
Community Space (APCAT) 13,200SF X $150 = $1,980,000
Community Space (APCAT) 13,200SF X $150 = $1,980,000
$2.1 NMTC Credits
$985,000 NRTC Equity(after fees)
$4.9Capital Campaign
CDE (QEI)
Investors Bank
NJ Department of Community Affairs
Interfaith Neighbors
Diagram 1: NMTC SchematicAsb
ury
Park
LLC
(QLC
IB)
Limited Partnership
$706,780 9%LIHTC Credits
/year
NJ Departm
ent of Community Affairs
New Jersey
Housing Finance Agency
Investors
Syndicate
Equity Fund
Asbury Park
Community, LLC
Bank Debt
InterfaithNeighbors
Diagram 1: LIHTC Four Floor Schematic
NMTC LIHTC – 3 LIHTC - 4
Total Development Costs $8.3 $8.9 $12.5
Equity Generated by Tax Credit
$1.6 $4.0 $8.0
Capital Campaign $5.0 $2.8 $1.3
NPV over 15 Years (LIHTC) and 7 Years (NMTC)
$1.7 $2.0 $3.4
Annual Debt Payments $103,189 $105,768 $203,033
Model 1-3 Financial Highlights
The Four Story Building With Two Stories of Low Income Housing is the Best Option
Next Steps