NEW YORK AVENUE CORRIDOR STRATEGY
Tax Credit Equity( Historic, New Market)
Project Specific
Conclusions / Observations
• Economic“ gaps” ranged from 18 % to 34 %; as noted, it is not unusual to have gaps ranging between 25 % and 40 % for urban infill projects.
• The largest gap was for Opportunity Project B, which includes the library / recreation center. Because these public uses do not typically generate revenue in excess of operating expenses, they only contribute to the cost side of the equation. Without the library / recreation center, the economic“ gap” for Opportunity Project B would be reduced to approximately 15 %.
• Potential contributions could offset the gaps estimated for Opportunity A and Opportunity B( without the library / recreation center). The gap for Opportunity C would likely require additional contributions, such as a land acquisition or writedown.
• Another measure of an opportunity project’ s success is the amount of private sector investment that can be“ leveraged” from public investment. Table 1 summarizes each Opportunity Project and the ratio of private investment resulting from“ filling the gap” with public investment( number of private dollars for every $ 1 of public investment). Individual economic analyses for each Opportunity Project are presented in Tables 2 through 4.
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FINAL REPORT | SEPTEMBER 2013