Definitions Flashcards
1
Q
Absolute Advantage
A
Term used when comparing two economies. An economy has an absolute advantage over another when it can produce more of a product, simply because it has more resources.
Absolute advantage says nothing of efficiency, nor opportunity cost.
2
Q
Ad Valorem Tax
A
A tax levied on the value of the taxed item. Local property taxes are generally ad valorem taxes.
3
Q
Adaptive Reuse
A
The rehabilitation of old property for a new purpose.
4
Q
AFDC
A
Aid to Families with Dependent Children provides income assistance to low income families. This has been replaced by TANF, Temporary Assistance to Needy Families
5
Q
Amortization
A
The liquidation of a debt via a specified schedule of payments.
6
Q
Anchor or “Key” Tenant
A
The most important tenant, and often largest, in a development project whose lease is usually instrumental in securing financing for the project and in attracting other tenants.
7
Q
Affordable Housing
A
Housing with consumers no more than 30% of household income.
8
Q
Angel Investor
A
An investor who provides equity investment to start-up businesses.
9
Q
Assessed Valuation
A
The monetary worth of a property for the purposes of taxation. Total assed valuation denotes the sum of the monetary worth of all taxable properties within a jurisdiction.
10
Q
Assets
A
Business property acquired at a measurable cost, the use of which is related to the business operations.
11
Q
BOTs (Build, Operate and Transfer)
A
Process in which a private company, finances, builds, and operates an infrastructure system for a fixed time, during which the government has a regulatory and oversight role. At the end of the project, usually 15 to 25 years, the system is transferred back to the government.
12
Q
Bankable
A
A person who can qualify for a loan at a commercial lending institution.
13
Q
Base Industry
A
Also known as “export” or “primary” industries, base industries sell or export their products and services outside the community and bring new dollars into the community, increase the total dollars that circulate within the community and that are spent on non-base industries.
14
Q
Benchmarking
A
Quantifiable measures of economic competitiveness and quality of life that can be collected on a regular basis. They are used to measure a region’s economic status and progress against comparable regions.
15
Q
Bond
A
A certificate of debt issued by a government or corporation guaranteeing payment of the original investment, plus interest by a specified future date.
16
Q
Bond Banks
A
State-level agencies that assist local governments in acquiring capital financing, usually through debt issuance.
Bond banks are especially helpful for smaller communities that typically have lower budgets and cannot afford the true costs of bond issuance.
17
Q
Bond Rating
A
An estimation of the relative credit-worthiness of a corporation or governmental unit. Private investment service companies make such estimates, generally designating the most credit-worthy borrowers as a triple A.
18
Q
Brownfields
A
Commercial or industrial sites that are abandoned or under-utilized and have real or perceived environmental contamination.
19
Q
Business Assistance Center
A
A one-stop center for streamlining local permitting, licensing, and fee payment processes and facilitating the decision-making processes.
20
Q
Business Climate
A
Usually referred to as the attitude of a local government toward business, but can also consider attitudes of local labor force, and local business networks.
21
Q
Business Incubator
A
Entity that nurtures and supports young companies until they become viable, providing them with affordable space, technical and management support, equity and long-term debt financing, and employment.
The three basic objectives in creating an incubator are 1. spur technology-based development, 2. to diversify the local economy, and 3. to assist in community revitalization.
22
Q
Business Improvement District (BIDs)
A
Legally defined entities formed by property and business owners, where an assessment or tax is levied for capital or operating improvements, as a means of supplementing city funding.
The district is created by the public law or ordinance, but is administered by an entity responsible to the district’s members, or to the local governing body.
Recent BID programs include economic and social development, transportation, parking management, and conversion of redeveloped commercial buildings for residential use.
23
Q
Business Recruitment and Attraction
A
Traditional approach to economic development to entice companies to relocate or to set up a new branch plant or operation in a state or locality; often referred to as “smokestack chasing”.
24
Q
Business Retention
A
Systematic effort designed to keep local companies content at their present locations, which includes helping companies cope with changing economic conditions and internal company problems.
25
CBD
The Central Business District of a locality. Usually this is an area with the highest concentration of businesses, including financial institutions, shops, offices, theaters, and restaurants.
26
CDBG
Its purpose is to encourage more broadly conceived community development projects and expand housing opportunities for low- and moderate-income persons.
The three primary goals of CDBG are to 1. serve low- and moderate-income people, 2. to eliminate slums and blight, and 3. to address other community development needs that pose a serious and immediate threat to the health and welfare of the community.
27
CDC (Community Development Corporation)
Community Development Corporation; organizations, typically non-profit 501 (c) (3), which can obtain federal and private support. They are governed by local residents, businesses, and community leaders through a board of directors that is in most cases elected from the CDC membership or the community.
28
CDC (Bank CDC)
Bank-sponsored community development corporations are a way for banks to contribute to economic revitalization by investing in local businesses and real estate investment projects that benefit low- and moderate-income groups. Bank CDC's can purchase, construct, or rehabilitate property.
29
CDC (Certified Development Company)
The originating and administrating body for the SPA 504 loans. The program provides long-term fixed-rate financing to small businesses to acquire real estate, machinery, and equipment for the expansion of businesses and modernization of facilities.
30
CDFI (Community Development Financial Institution)
Works in market niches that have not been adequately served by traditional financial institutions. CDFI's provide a wide range of financial products and services, including mortgage financing, commercial loans, financing for community facilities, and financial services needed by low income households.
To be a certified CDFI, an institution must engage in community development, serve a targeted population, provide financing, have community representatives on its board, and be a non-governmental organization.
31
CHAS (Comprehensive Housing Affordability Strategy)
A federally mandated five-year low- and moderate-income housing plan, describing needs, outlining strategies, and listening resources, which is required, with annual updates, for state and local governments to receive federal housing funds.
32
CHDO (Community Housing Development Organization)
A federally defined type of nonprofit low- and moderate-income housing provider eligible to receive 15% of all federal HOME Investment Partnership funds for housing development and 5% of HOME funds for operating costs.
33
CRO (Community Reuse Organization)
Organization which oversees the transition of a U.S. Department of Energy facility from governmental to civilian/commercial use.
34
Capacity Building
Developing the ability of a community-based neighborhood organization to effectively design economic development strategies through technical assistance, networks, conferences, and workshops.
35
Capital
Consists of property of wealth from which income is derived, expressed in terms of money, and which can be used to produce additional property or wealth.
36
Capital Costs
Costs of investment in major physical improvements, infrastructure and equipment, such as buildings, roads, and machinery.
37
Capital Projects Fund
Money that accounts for the acquisition of capital facilities. This money can be raised through bond issues or grants.
38
Capitalization Rate
The rate of return that deems investment in a development project reasonable, often referred to as the "cap rate".
39
Cash Flow
A statement showing total cash receipts and disbursements for a specific period of time.
40
Clawbacks
Clawbacks describe the punitive steps taken against firms that break incentive contracts.
41
Comparative Advantage
Term used when comparing economies of regions. It is the economic advantage gained by one area over another due to the fact that it can produce a particular product more efficiently. More efficient production of one good means there is a higher opportunity cost to produce another. This is the concept that drives trade between economies.
Inter-regional and international trade exploits the comparative advantages of economies.
42
Competitive Niche
A market in which a business or economic region finds itself to perform well.
43
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) or "Superfund"
Under this act, sites with the worst environmental damage may be designated National Priority List (NPL) sites. If an owner/operator fails proper remediation, fines can total up to 3 times the cost of clean up. They receive federal assistance.
44
Consolidated Plan
The consolidated plan, or ConPlan, combines all of the planning, application, and performance requirement previously required separately for CDBG, HOME, ESG, HOPWA, that require a Comprehensive Housing Affordability Strategy (CHAS).
45
Cost-Benefit Analysis
A method for evaluating the profitability of alternative uses of resources.
46
Cost Effective Analysis
Compares alternative projects or plans to determine the least costly way to achieve desired goals.
Usually, some index or point system is developed to measure the effectiveness of the proposal in meeting the goals and objectives.
47
Council-Manager
A form of city government which places all administrative authority in the hands of a professional manager who is hired by the elected council. The duties of the mayor are usually mainly ceremonial.
48
Deed restrictions
Clauses in a deed limiting the future uses of the property. Deed restrictions can take many forms. They may limit the density of buildings, dictate the type of structures that can be erected, prevent buildings from being used for specific purposes or used at all, and limit the resale price, etc.
49
Deferred Loan
A type of loan in which payment is put off until some later date. If all conditions are met at the later date, the loan may be forgiven and reclassified as a grant.
50
Depreciation
A decrease in value through age, wear, or deterioration. It is important for tax assessments. The rate of depreciation can be manipulated to effectively raise or lower tax paid on the value of an asset.
51
Development Authority
An agency independent of city government that usually possesses special powers beyond those of city government. Such powers could include eminent domain authority to issue special types of bonds, special taxing powers, and regulatory powers.
52
Discount Rate
The rate the Federal Reserve charges member banks for inter-bank loans. The interest rates that banks charge customers are based on the discount rate.
This is not to be confused with a discount rate for a development project, which reflects the opportunity cost and risk involved in the project.
53
Easement
The right to use the property of another which may be granted explicitly, or earned by implication.
54
Economic Base
A method of classifying all productive activity into two categories: base industries which produce and sell goods that bring in new income from outside the area, and service industries which produce and sell goods that simply circulate existing income in the area.
55
Economic Base Analysis
A comprehensive study of a locality's economy, focusing on the importance of exports. It should include an economic history, data on existing industries, trends, and forecasts of growth in wages and employment.
56
Economic Development Administration (EDA)
Created by the Public Works and Economic Act of 1965 as a part of the Commerce Department. The EDA's main goals are to alleviate unemployment and diversify the economy, as well as assist urban areas with planning and emergency public works programs.
57
Economically Disadvantaged
A person who is a member of a family which either receives cash welfare payments or has a total annual income in relation to the family size which does not exceed poverty level determined by the OMB.
58
Econometric Modeling
A qualitative method for analyzing the impact of a proposed action on the economy. A model permits testing the effects of an anticipated or hypothetical change.
59
Economies of Scale
The phenomenon of production where the average cost of production declines as more of the product is produced.
60
Edge City
A newly emerged city on the edge of an existing city that serves as a work and shopping center, with a large amount of office and retail space.
Also known as Exurb.
61
Elasticity
The proportion that represents the impact on one factor by a certain percentage of change in another. For example, price elasticity of demand represents the change in demand per change in a single unit of price.
62
Eminent Domain
The authority to "take" private property for a public purpose upon paying a fair price for the property and relocating the tenants.
The most frequent use of this authority is the act of "condemnation".
63
Empowerment Zones/Enterprise Communities (EZ/EC) Initiative
Established in 1994 and administered by HUD and Dept. of Agriculture, federal EZ/EC tools include not only business tax incentives but also transportation to work or school, drug and alcohol rehabilitation, and other local priorities.
The program creates incentives for localities to develop their own approaches to alleviate poverty.
All federally designated zones are areas of pervasive poverty, unemployment, and general distress. Each designated city receives a mix of grants and tax-exempt bonding, which employers in the EZ/EC receive tax credits for new hires and accelerated depreciation credits.
64
Enterprise Zones
State enterprise zones are designated geographic areas that are eligible for special treatment and incentives to attract private investment.
State guidelines define the size of a zone and the minimum level of economic distress to qualify as an enterprise zone.
65
Entitlement Community
An entitlement community is eligible to receive annual CDBG funds that it can use to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, principally to benefit low- and moderate-income persons.
Eligible grantees include local governments with 50,000 or more residents.
66
Entrepreneurial Training
Programs that provide guidance and instruction on business basics such as accounting and financing, to ensure that new businesses improve their chances of success.
67
Externality
A side effect of production or consumption that is not paid for. Pollution is a negative externality of oil refining, which the building of roads has a positive externality for later generations who use it.
68
Fair Market Value
The estimated worth of a property made by a certified appraiser, which reflects the price at which the property could be immediately sold in a competitive market.
69
Fiscal Impacts
The direct and indirect costs incurred and revenues received by local governments resulting from land use and other types of decisions.
70
501(c)(3)
Approval given by the IRS granting exemption from federal income tax to a nonprofit organization, under Section 501 (c)(3) of the Internal Revenue Code. Donations to such organizations are tax deductible.
71
501 (c)(6)
Approval given by the IRS granting exemption from federal income tax to a business league. Trade associations and professional associations are considered to be business leagues.
The business league must be devoted to the improvement of business conditions of one or more lines of business, as distinguished from the performance of particular services for individual persons.
72
Flex Space
Space that can be used for one or a combination of different types of production, e.g. manufacturing, office, service, or distribution.
73
Front-End Costs
Capital required at the early stages of a development project, such as the cost of land, plans and working drawings, construction materials, and labor.
74
Gap Financing
A loan required by a developer to bridge the gap, i.e. to make up a deficiency between the amount of mortgage loan due on project completion and the expenses incurred during construction.
75
General Fund
The portion of a municipal budget devoted to basic administrative functions. It includes funds that are not otherwise earmarked for specific uses.
76
General Obligation (G.O.) Bonds
Limited Tax G.O. Bonds: Tax-exempt bonds secured by the revenue from the application of a fixed rate against taxable property. Not all states permit limited tax G.O.s but in those that do, such bond issuance does not require voter approval.
Unlimited Tax G.O. Bonds: Tax-exempt bonds secured through taxes that are levied without rate or amount limitations, in order to repay the principal and interest of the bond. They are typically used to finance public works infrastructure and land acquisition for blight elimination.
77
General Partner
The co-owner(s) of a venture who is liable for all debts and other obligations of that venture as well as for the management and operation of the partnership. The general partner can have control of the business and can take actions which are binding on the other partners.
78
Gentrification
The migration of middle-class residents into a deteriorating area. This migration may help to revitalize an area, but it also tends to "squeeze out" lower-income families by inflating property values.
79
Geographic Interface Systems (GIS)
Computer programs that integrate social, economic, and demographic information and mapping. GIS is particularly useful for market studies, transportation analysis, crime studies, and housing impact analysis.
80
HOME Investment Partnership Program
The HOME program was created under the National Affordable Housing act of 1990. HOME provides grants to states, local governments, and Indian tribes to implement local housing strategies. HOME is intended to increase home-ownership and affordable housing for low- and very low-income households. It was also designated to stimulate creative partnerships with nonprofit community-based development organizations.
81
HUD
HUD was established as a cabinet department in 1965 as part of President Johnson's "War on Poverty". The department is responsible for "national policy and programs that address America's housing needs, that improve and develop the Nation's communities, and enforce fair housing laws. Administer CDBG and HOME
82
Hard Costs
Bricks and mortar costs of development, including contractor's fee and overhead.
83
Holding Costs
A term used by economic developers denoting the costs of owning land or property during the pre-development stages of a project.
84
Housing Development Corporations (HDC)
A private, multifamily housing corporation established to serve a specific geographic area (neighborhood, city, state, region). An HDC provides technical assistance, lends seed money, and directly sponsors housing developments.
85
Housing Finance Agency (HFA)
State agencies which are responsible for the financing of housing and the administration of subsidized housing programs. State HFAa also allocate LIHTC and tax-exempt bond authority in each state.
86
Impact Fees
Fees required to cover costs of improving and/or building infrastructure needed as a result of the expected impact of a development project on those facilities. Often required by localities for the approval of development projects.
87
Incentives
Benefits offered to firms as part of an industrial attraction, retention or expansion strategy. A few incentives are tax abatements and credits, low interest loans, infrastructure improvements, job, training, and land grants.
88
Industrial Development Bonds
These bonds are used to finance acquisition, construction, expansion, or renovation of manufacturing facilities and the purchase of machinery and equipment depending upon state law. IDB financing is subject to state and local laws, and federal income tax laws.
89
Industrial Park
A specified area or land zoned for industrial use which has specified covenants and restrictions to be followed by all occupants.
90
Industrial Revenue Bonds
Bonds that provide lower-cost financing for real property improvements, or the purchase or construction of buildings, facilities, or equipment.
91
Industry Clusters
Geographic concentrations of related businesses that are complementary or competing. Regions identify clusters as targeted businesses for future planning and marketing efforts. There are two types: (1) buyer-supplier clusters and (2) shared resources clusters.
92
Infrastructure Banks
Public-targeted lending facilities, financed through a combination of bond issues, government funds and external donor support. They mobilize domestic funds, and create an attractive vehicle for donor funding.
93
Investor Networks
Investor networks match up potential investors (either anonymous or "angel" investors or known investors) with start-up firms needing capital.
94
Land Banking
A program that preserves industrial space for a city. A city or local development authority acquires and holds land until a developer steps forward with a proposal for its use as an industrial site.
95
Local Development District
A multi-jurisdictional organization that is designated by the Appalachian Regional Commission, and serves a variety of functions for its member organizations.
96
Local Reuse Authorities
Agencies that oversee the transition of U.S. Department of Defense facilities from military use to civilian/commercial use.
97
Location Quotient
The percentage of total local unemployment in a particular industry compared to the percentage of total national employment in that same industry.
98
Localization Economies
The condition where costs decrease for firms in a particular industry as total industry output increases. The lower costs come as a result of the firms in an industry locating close to each other.
99
Low-Income
A definition based on family income as a percentage of an area's median income. Different programs may set different percentages. A household whose annual income is at or below 80% of the median income in a particular MSA, as determined by HUD, is considered to be low-income.
100
Low-Income Housing Tax Credit
A tax credit allowed for investors as an incentive for the development and preservation of multifamily rental housing that is affordable to low- and very low-income households.
101
Low-Income Neighborhood
A neighborhood that has at least 51% of its households at or below 80% of median income for the areas.
102
Matching Grant
A grant for the same amount that the grantee expends on a project. This effectively subsidizes the project, while giving the grantee incentive to spend more on the project.
103
Mayor-Council
A system of city government which separates legislative and executive power. Mayor council forms of government range along a continuum from extremely strong to very weak. The strong mayor often has executive powers, while the weak mayor sees power dispersed among separate agencies.
104
Microenterprise
A business that is "smaller-than-small". Operated by a person on a full- or part-time basis, usually out of a home, e.g. carpenters, day-care providers, crafts persons, and caterers.
105
Minority Business Development Agency (MBDA)
An agency within the U.S. Dept. of Commerce. The MBDA provides assistance to socially or economically disadvantaged individuals who own or want to start a business. MBDA provides funding for Minority Business Development Centers, Native American Business Development Centers, and Minority Business Opportunity Committees.
106
Moderate Income
A definition based on family income as a percentage of an area's median income. Different programs may set different percentages. According to HUD's CHAS guidelines, households whose incomes are between 81% and 95% of an area's median income with adjustments for smaller or larger families, are considered to be moderate income.
107
Mortgage Revenue Bonds (MRBs)
A bond issued to finance permanent mortgages on housing, the lien of which is conveyed to the bondholders by a deed of trust. Those bonds issued by a unit of state or local government are first mortgage bonds secured by specific real property, and generally not the full faith and credit of the municipality authorizing the bond issuance.
Most states issue MRBs through their state housing finance agency.
108
Multiplier
A quantitative estimate of the impact (in dollars, jobs created, demand) of a project.
109
Multiplier Effect
Describes the process of dollar or job generation as a result of a new or migrating business or project, or of a local business expanding production (to exports). The multiplier effect accounts for additional local income generated by local spending of money that came from outside a community.
110
Neighborhood Development Organization (NDO)
A community-based organization accountable in some way to the residents of its target area and whose purpose is to initiate and sustain neighborhood economic development.
111
NIMBY ("Not in My Backyard")
Term used to describe local (residential) opposition to development projects.
112
Neighborhood
A geographic location designated in comprehensive plans, ordinances, or other local documents as a neighborhood, village, or similar geographical designation that is within the boundary, but does not encompass the entire area of a unit of general local government.
113
Net Operating Income
Revenue less operating expenses. Also called operating cash flow.
114
Net Present Value
Value today of total discounted future income stream of a development project. It determines the property value considering its income potential.
115
North American Development Bank
Founded under the auspices of NAFTA, NADB is a "bilaterally-funded, international organization, in which Mexico and the U.S. participate as equal partners". It's purpose is to finance environmental infrastructure projects. All NADB-funded projects must be certified by the Border Environment Cooperation Commission, be related to potable water supply, wastewater treatment, or municipal solid waste management and be located within the border region.
116
North American Industry Classification System (NAICS)
The industrial classification code system used for categorizing industrial establishments. Beginning in 1997, NAICS replaced the Standard Industrial Classification (SIC) as the system for classifying firms in the U.S., Canada, and Mexico.
117
One-Stop Business Service Centers
They focus on reforming licensing and permitting regulations, and are facilities where businesspersons can go to obtain the licenses and permits needed to start-up, operate, and expand their facilities.
These centers improve the local business environment while reducing the number of separate agencies and offices a business must apply to for various licenses and permits, saving public and private time and financial resources.
118
Opportunity Cost
The revenue forgone by choosing one use of money and resources over another. The opportunity cost of investing in the stock market is the interest that the money could have earned while sitting in the bank.
119
Overall Economic Development Plan (OEDP)
A plan developed at the city, county, or EDD level, as required by EDA, to identify the subject area's problems and opportunities for economic development, to define goals and objectives which will be pursued, and listening infrastructure, and other projects needed to achieve those goals and objectives.
120
Penturb
An independent, smaller metro area that lies at quite a distance from a major metropolitan area.
121
Product Cycle Theory
Theory that describes the production of particular product over time. Products are developed by small firms in a particular region, then the product becomes standardized, and produced on a mass production scale, by larger companies.
122
Public Infrastructure Extension
Local governments provide public infrastructure extension to meet the infrastructure needs of new, expanding, or relocating firms whose facilities need better water, sewage, telephone, or road infrastructure.
123
Public Works Trust Funds
Public Works Trust Funds are used by states to provide loans instead of grants for infrastructure projects. These trust funds support project self-sufficiency, comprehensive planning, and allocation of funds based on management, and ability to repay the loans rather than severity of need.
124
Recoverable Grant
A no-interest loan that has to be repaid to the lender making the grant
125
Resource Audit
A process for inventorying potential resources or competencies anticipated to be available in a region during the planning period. Used in selecting strategies and strategic initiatives that are achievable.
126
Revolving Loan Fund (RLF)
A pool of public and private sector funds in which the money is recycled to make successive loans to businesses. Loans made by an RLF are repaid with interest and the payments are returned to replenish the lending pool so new loans can be made. The funds are thus recycled and the RLF grows as each generation of borrowers adds to the pool.
127
Risk Management
Strategically protecting against losses (financial) for any venture that has an uncertain outcome.
128
Seed Capital
Equity money supplied to help a company get off the ground. The money is almost aways supplied by an entrepreneur and his/her family, friends, and relatives. Used to help attract (leverage) other investment.
129
Secondary Financing
A loan secured by a second mortgage on a property, sometimes used to refer to any financing techniques other than equity and first-mortgage debt.
130
Section 7(a) Loan Program
Categorized as SBA's general business loan program, SBA 7(a) Small Business Loan guarantees between 70%-90% of a loan, up to a maximum of $750,000 for almost any legitimate business purpose.
131
Section 8
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.
132
Section 108 Loan Guarantees
Provide front-end financing for large-scale physical development projects to city agencies that are eligible for and receiving CDBG funds. Eligible communities can borrow against their CDBGs to finance economic development projects.
133
Section 504 Loan Program
Provides long-term, fixed-rate financing to small businesses to acquire real estate, machinery, and equipment for the expansion of business or modernization of facilities.
The loans must originate and be administered by a certified development company and cannot be used for working capital purposes or to refinance existing debt, and are not made to non-profits.
Loans are approached like "projects" where funds are provided by a conventional lender, an SBA guarantee, the borrowing business, or in rare cases the certified development company.
134
Shift-Share Analysis
A method used to examine a local area's basic industries in terms of their growth and decline, relative to national or regional trends.
135
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.
136
Small Business Administration (SBA)
Founded in 1953, SBA's mission is to "aid, counsel, assist, 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 SBA has delivered more than 13 million loans, loan guarantees, contracts, and other forms of assistance to small businesses.
137
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.
138
Smart Growth
The efficient use of all available assets. According to the American Planning Association, smart growth involves efficient land use; full use of urban services; mixed use; mass transportation options; and detailed, human-scaled design.
139
Soft Costs
Development costs for various services, including architecture and engineering fees, construction interest, loan fees, insurance fees, legal and accounting fees, and permit fees.
140
Soft Debt
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.
141
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.
142
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.
143
Special Improvement Districts
Mechanisms where local businesses and/or residents agree to voluntarily pay an additional tax, so local governments can finance and implement improvements within a specific and limited area.
144
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.
145
Subsidy
Funds provided generally by government in the form of a grant, which reduces the cost of development or support ongoing operations.
146
Suburb
Communities that lie outside of the city borders, yet either depend on, or maintain a direct link to the central city.
147
Sustainable Development
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.
148
SWOT Analysis
A tool used in the economic development planning process to assess a community's 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 charged.
149
Tax Abatement
Exemption or reduction of local taxes of a project for specific period of time.
150
Tax Incentives
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.
151
Tax Increment Financing
Funding for redevelopment of an area by using the increases in taxes generated by the redevelopment. It must have state and local enabling legislation.
152
Technical Assistance
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 can also be provided to organizations such as EDOs, community organizations or neighborhood organizations.
153
Transitional Housing
Shelter for homeless individuals and families for period of six months up to two years in an environment of security and support designed to help residents progress toward self-sufficiency. A middle point between emergency shelter and permanent housing.
154
Underemployed
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.
155
Umbrella Bonds
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.
156
Unemployed
All civilians who were not employed, but were available and actively seeking work within the past four weeks, were waiting to be called back to a job from which they had been laid off, or were waiting to report to a new job scheduled to begin within 30 days.
157
Venture Capital
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 development enterprises, not start-ups. The capital is subject to considerable risk and uncertainty.
158
Very-Low-Income
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 U.S. Housing Act of 1937, a household that earns 50% or less of the median income for a family of the same size in that metropolitan area, as determined by HUD guidelines.
159
Voucher
A government payment to, or on behalf of a household, to be used solely to pay a portion of the household's housing costs.
160
Workforce Investment Act
Created in 1998, it 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.
161
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.
162
Zoning
Geographic designations of land by categories of use; residential, heavy and or light manufacturing, commercial, agricultural, institutional, etc.
163
Zoning Ordinance
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.
