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Last
Updated
05/05/2008
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Volume:
VI
Issue:
I
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Main Newsletter Navigation Menu
Click the Tabs Below to Navigate Through the Newsletter
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Federal, state, county, regional, city or borrough Economic Agencies
What are EDC's and CDC's?
For those not familiar with economic agencies, they exist in practically every community in the U.S. established mostly on the County and City level as "XYZ County Economic Development Corp" or as a CDC "Community Development/Redevelopment Corp." These agencies are generally private non-profit 501(c)(3) corporations subtitled 'economic development organization' incorporated by local governance for the purpose of assisting existing businesses and attracting new businesses in order to preserve and to create jobs for residents of their respective communities or representative areas. Some agencies may even be a branch of a chamber of commerce or chamber of business and industry. Many agencies are heavily involved in developing their region or communities infrastructure in cooperation with local governments Many of these agencies are monitarily supported through the state and local government and are answerable to that government. Many disburse monies from their own loan pools, government loans and both private and government grants for use in business and infrastructure.
In addition these organizations may be associated with the SBA (Small business Administration) a nationwide organization for business development, who themselves have enormous resources and know how.
Every county-level agency has a listing from their state's official web site and every city (community) level agency has a listing on their city or community web site, however they are generally buried under tons of other promotional state or locally related links. The goal of LLA's Economic Agency database is to gather together all of these resources in one definitive location rather than to have investors try to seek out information from hundreds of agency pages strewn over the internet.
How can an EDC or CDC help you the property investor?
An estimated 90% of all new business has dealt with one or both of these types of EDC's (Economic Development Corporations)
An EDC's or CDC's goals are primarily to focus state, regional, county and community-wide resources (land, capital, infrastructure and people) to aid and to direct businesses in relocation, incubation and entrepreneurial start-up, and utimately the retention of those and other businesses.
Many of these agencies, among the various developmental tasks they perform, may also own, distribute, hold, lease, advertise, rent or sell investment type property (land and buildings). That's right! EDC's and CDC's may actually hold the half of commercial investment properties throughout the US. Think of this the next time you get fed up looking through realtor listings! Even then, after finding a realtor listed property an EDC may be available to assist you as a new commercial investment property owner!
To invest with an EDC, meaning to purchase, rent or lease any of their property usually entails some type of economic aid package that is specific to that investment.
State loans and grants may be available for land, buildings, equipment, working capital, research & development and inventory. They may also administer monies from regional loan pools for special projects that meet certain developmental or investment criteria.
Some of the other services provided through EDC's or CDC's acting as developer and/or administrator working on your investment or project:
- Data collection, planning and project coordination
- Packaging and submission of loan applications
- Design of building and site layout
- Property surveys and appraisals
- Utility connections and communications
- Permits and approvals
How can LLA aid an EDC or CDC?
In some cases an EDC or CDC may also act as a Landlord with the properties they hold or have been intrusted, even though they may not desire or be mandated to do so.
Here at LLA we intend to help economic agencies that may play both roles as advertising-realtor and or landlord by offering our commercial/investment property database for the listing of such properties for sale or lease, generally these properties are communally entrusted to these organizations to be marketed for the economic advantage of the communities they represent. On the other hand many CDC's may outright own multiple facilities they intend to redevelop and then attempt to sell at far less than market value hoping to attract a business to buy or lease the property. Not to mention the fact these agencies often have economic or tax reduction incentives and entreprenurial/development and training oriented packages that may be associated with the property they are leasing, managing or selling.
The second service LLA provides is how to tackle issues about being a good landlord. Many times economic agencies may end up playing the unsuspecting role of landlord and may not be prepared to do so. We will continue to bring those agencies the scoop on the industry trends to shed some light on how we can help them run their agency more friendly and efficiently.
Because of the nature of the economic agency, wanting to aid new entreprenurial business and the such, they often own facilities to rent to such entreprenuers who can not outright purchase a facility for some time, due to start-up overhead. Many agencies handel industrial complexes that may have been abandoned by large corporations and are trying to sell, referbish or maintain them to be sold to other businesses.
Adding it all up using LLA's Economic Agency Services
What does all of this mean? Well, it's a win-win situation! You may find commercial property to own or lease with incentives from an economic agency. You may find assistance to sell, lease or operate a commecial property through your local agency (albeit it may need to be quite a substancial commercial property i.e. Steel Mill, Auto Plant, historically preserved area etc.)
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