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Economic Incentives for the Metro atlanta region

Economic Incentives for the Metro atlanta region. Why Economic Incentives?. People respond better to laws that give them some benefit and not just restrict their ability to live An economic incentive will motivate people to the region and not push them away.

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Economic Incentives for the Metro atlanta region

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  1. Economic Incentives for the Metro atlanta region

  2. Why Economic Incentives? • People respond better to laws that give them some benefit and not just restrict their ability to live • An economic incentive will motivate people to the region and not push them away

  3. Specific Industry Incentives based on location • Why? • Results based off of the Georgia Entertainment Industry Investment Act of 2008 • Imitation is the highest form of flattery

  4. Movies Shot in Georgia • More than 26 feature films were filmed in Georgia during the 2009 fiscal year* • Features include: • The Blind Side • The Crazies • Zombieland • The Last Song • Why Did I get Married Too *Source: Augusta Chronicle

  5. Financial year 2009results from the Georgia Entertainment Investment Act of 2008 • 180 Commercials • 29 Music Videos • 14 Feature films • 12 Independent Films • 78 Episodic and Television • Total Combined Budgets: $716.7 million Source: Dept of Economic Development, Georgia Film, Music & Digital Entertainment Office

  6. Financial year 2009results from the Georgia Entertainment Investment Act of 2008 • 348 Number of Combined Productions • $770.2 million Total value of all production budgets • $1.3 billion Economic Impact Source: Dept of Economic Development, Georgia Film, Music & Digital Entertainment Office (including interactive video games)

  7. Drawbacks to Media Act • Most of the filming has only taken place in Atlanta or Savannah • Recently, there was filming in 50 counties in Georgia • Georgia has a total of 159 counties *Source: Augusta Chronicle

  8. Industry specific incentives based on location needed • Easy for industries to know where they get breaks • Migration of workers, experts, and students in specific areas to certain parts of the metro region

  9. Industries with growth projections for the future • Biotechnology • Ecommerce & Online Auctions • Voice over Internet Providers • Environmental Consulting • Recycling Facilities • Land Development Josh Spiro, The Best and Worst Industries of the Next Decade (2010), http://www.inc.com/news/articles/2010/01/best-and-worst-industries.html

  10. General Assembly to pick where industry incentives are placed • To keep counties from competing with each other • Businesses will view the region with stability since the General Assembly have shown control

  11. Dividing up the Metro Atlanta Region

  12. Educational Enhancements in Specified Regions • Board of Regents of the University System of Georgia • Develop training programs for schools located within designated regions • The values of an educated workforce • Who works the cold room? • How school developments impact in the surrounding community

  13. Energy Consumption v. Production

  14. Energy Price Comparison

  15. Carbon Dioxide Projections

  16. Will new vehicles cause electricity consumption to increase? Ford Focus Electric Chevy Volt Nissan Leaf

  17. Property Assessed Clean Energy (PACE) Bonds • What is PACE used to finance? • Advantages associated with using PACE bonds • Differences in PACE for the various states with enabling legislation

  18. What are PACE bonds financing? • Joe Biden, Steven Chu, and Shaun Donovan • http://www.youtube.com/watch?v=2HpwQff2tIA • Bill Clinton • http://www.youtube.com/watch?v=-UjhPf6Go5A

  19. How to set up PACE Financing • The passage of state enabling legislation allowing for special municipal taxing districts • Municipality (city or county) creates a special “PACE” district • PACE districts issues a PACE master bond • Commercial/residential real estate owners apply for PACE funds to install hyper energy efficiency measures and renewable energy production • PACE funding treated as senior “property tax lien” and repaid by real estate owner over 20 years as an annual property tax surcharge

  20. PACE Bonds are coming to a state near you States with legislation enabling PACE Financing • California (AB 811) • Colorado (HB 08-1350) • Illinois (SB 583) • Louisiana (SB 224) • Maryland (HB 1567) • Nevada (SB 398) • New Mexico (HB 572) • Ohio (BH 1) • Oklahoma (SB 668) • Oregon (HB 2181 & 2626) • Texas (HB 1391 & HB 1937) • Vermont (H 446) • Virginia (SB 1212) • Wisconsin (AB 255)

  21. An example of PACE(warning some math involved!) • The amount of seniority to the existing mortgage created by a PACE lien will typically represent less than 1% of home value • This is because in most PACE states, upon foreclosure, only the delinquent tax lien gets paid (not the whole PACE loan) while the homeowner assumes the remaining balance • Assumptions: • Home Value: $300,000 • Mortgage: $250,000 • PACE Lien: $15,000(5% of home value) • Annual PACE: $1,392(7% rate, 20 year amortization) • Property Surcharge • Average Period Between Less than 12 months • Delinquency and Foreclosure • Assume 1 year PACE surcharge is delinquent and paid ahead of the mortgage: Senior Payment:$1,392 • % of Home Value:.5% • % of Existing Mortgage:.6%

  22. Let’s compare legislation • Texas • http://files.statesurge.com/file/896737 • California • http://info.sen.ca.gov/pub/07-08/bill/asm/ab_0801-0850/ab_811_bill_20080721_chaptered.pdf • Georgia • http://www.legis.state.ga.us/legis/2009_10/pdf/hb1388.pdf

  23. Berkeley Example • http://www.cityofberkeley.info/uploadedFiles/Planning_and_Development/Level_3_-_Energy_and_Sustainable_Development/Berkeley%20FIRST%20Initial%20%20Evaluation%20%20final%20%282%29.pdf • http://berkeley.solarmap.org/solarmap_v4.html

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