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Location

Location. Prestigious neighbors: Tournament Players Golf Course & The Alario Center. Near Huey P. Long Bridge, improvements and expansion of which began in early 2006.

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Location

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  1. Location • Prestigious neighbors: Tournament Players Golf Course & The Alario Center • Near Huey P. Long Bridge, improvements and expansion of which began in early 2006 Situated at the center of Jefferson Parish, 12 miles from Louis Armstrong International Airport and 20 minutes from Downtown New Orleans.

  2. Image • Churchill Technology & Business Park is a high-profile development in an attractive setting. The park will provide multiple configurations and uses with attractive land and development cost.

  3. Future of Area • Future location of JEDCO Administrative Offices and the Technology Incubator • Home of Patrick F. Taylor Science and Technology Academy • Business, research, retail and recreation

  4. Future of Area – Conceptual

  5. Future of Area – Conceptual

  6. Future of Area – Aerial View

  7. Project Status • Initial 40 acres donated to JEDCO on July 19, 2005. • Clearing and Surcharge completed on July 1, 2006. • Pre-Katrina Infrastructure Cost - $4,700,000 • Post-Katrina Infrastructure Cost - $6,100,000

  8. Project Finance • Jefferson Parish allocated $500,000 to fund infrastructure design and engineering in 2005. An additional $1,850,000 is available for infrastructure during FY ’06. • State of Louisiana appropriated $1,500,000 as “Priority 2” in the 2006 – 2007 State Capital Outlay Budget. • The U.S. Economic Development Administration awarded an $850,000 grant for infrastructure. • $2,700,000 funding request in to Louisiana Recovery Authority for infrastructure completion.

  9. Impact • Investment value - $442 million within 20 years. • The 500-acre park will provide 12,700 jobs with wages totaling $286,896,197 for an average annual wage of $41,441 over that same 20 year period. • Park includes Office Buildings, Film Soundstage, Hotel and Conference Center

  10. Jefferson Parish: Business Gateway • Jefferson Parish Moody’s Bond Rating: AA2 • Population approaching 500,000 • Multi-modal transportation: international air service, access to two large ports, major rail lines • 11 Universities/Colleges within 15 miles, including Tulane & Loyola • Nationally recognized hospitals • Business oriented, world class restaurants, regional shopping, numerous festivals, rich history & diverse culture

  11. Patrick F. Taylor Science & Technology Academy • Designing and building a state-of-the-art school facility in the Churchill Technology & Business Park. • Taylor was awarded a replication site and an accompanying $400,000 grant becoming one of fourteen New Technology High Schools in the nation. • A nationally recognized school through involvement of local stakeholders, innovative curriculum design, and association with a nationally recognized foundation. • Taylor students will be better prepared for college and tomorrow’s high-tech workplace because of their advanced, innovative high school experience.

  12. GO Zone Act of 2005

  13. GO Zone Key Benefits (Tax-Exempt Bonds) • Exempt from both federal and state income taxes and exempt from inclusion of the federal Alternative Minimum Tax • Borrowed costs can be as low as 1.5% to 2% below conventional financing • Must be used for qualified commercial projects and are available to private businesses and developers for a wide range of development projects • Major incentive for investment in the Go Zone by startups, expanding businesses, and national and international developers

  14. Advantages of Tax-Exempt Bond Financing • The most important advantage is the substantial reduction in interest rate. • In most cases, using the credit enhancement structure on a variable rate tax exempt bond financing, the borrower will reduce its overall interest rate by 150-250 basis points. • The higher cost of issuance will offset some of those reduced rates in the initial year of borrowing.

  15. GO Zone Key Benefits (Bonus Depreciation) Additional depreciation of GO Zone property equal to 50% of the depreciable basis for the first year placed in service Example Assets: 5 year useful life and 34% tax rate assumption Computers $5,000 Printers $1,500 Furniture $7,000 Software $2,000 Total: $15,500 Real Estate: 39 year useful life and 35% tax rate assumption Improvements $1.2 million Bonus DepreciationStraight Line Depreciation $15,500 x 50% x 34% = $2,634 $15,500 x 20% x 34% = $1,054 $1.2M x 50% x 34% = $204,000$1.2M x 2.5% x 34% = $10,200 Total Bonus Deprec =$206,635 Total Depreciation = $11,254

  16. GO Zone Key Benefits (Enhanced NOL Carry back) • Net operating loss that is qualified GO Zone loss can be carried back five years as opposed to two years • Qualified GO Zone loss: • Property Casualty • Employee Relocation • Temporary Employee Housing • Depreciation of GO Zone Property • Repair and Renovation

  17. Increase Expensing • Section 179 expensing increased from $108,000 to $208,000 • Capital expenditure ceiling is raised to $1,030,000 for Katrina-related expenses from $430,000

  18. GO Zone Key Benefits(Other Benefits) • Rehabilitation Expenses • Rehabilitation tax credits is increased from 20% to 26% for historic building • Tax credit is increased for “qualified rehabilitated” buildings from 10% to 13%

  19. Louisiana Business Incentives

  20. State Business Incentives • Development Refundable Tax Credits 20% tax credits on costs • Film & Video Allows transferable tax credits on investment in infrastructure if the total base investment is greater than $300,000; each taxpayer shall be allowed credits at the rate of 20% of the base investment.

  21. State Business Incentives • Sound Recording Provides the following incentive structure for investments made in “state-certified productions” approved by the LA music commission and the Department of Economic Development If the total “base investment” is greater than $15,000 and less than or equal to $150,000, each taxpayer is allowed a tax credit of 10% of the actual investment made by that investor If greater than $150,000 and less than or equal to $1M: 15% If greater than $1M: 20% • Digital Interactive Media Act For projects certified prior to 2010, income tax credits shall be earned at the rate of 20% of LA investment for the first 2 years; Income tax credits shall be earned at the rate of 15% of the LA investment for the following 2 years of the project; Income tax credits shall be earned at the rate of 10% for a final 2 years of the project

  22. State Business Incentives • Restoration Tax Abatement Up to 10 years for renovated buildings located in the Downtown Development District or historic/economic development district • Venture Capital Match and Seed Capital Programs The state offers businesses one dollar for every two dollars of private investment • Louisiana Major Projects Development Authority Allows for major awards for significant capital project including land acquisition, development, planning, financing and construction based within the entertainment industry

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