Nothing about Superstorm Sandy was normal – not the magnitude of it, not the damage it caused, and not the government’s or the region’s reaction to it.
So it should come as little surprise that the financing landscape for post-Sandy development and re-development is also unusual.
“In the aftermath of Superstorm Sandy, even in areas that were badly damaged, developers and not-for-profits continue to have difficulty accessing debt and equity,” said Arthur J. Momjian, who heads the Superstorm Sandy Practice Group at the law firm Duane Morris.
“Developers and non-profits – even those already doing Sandy projects – are not generally aware of the federal and state debt and equity subsidies available for Sandy-related projects.”
Momjian and a group of speakers, from the private sector and government, hope to change that. The New York City office of Duane Morris is hosting a seminar on September 25 for any would-be developer of Sandy-related projects, but particularly targeted to middle-market commercial developers and not-for-profits.
The conference will bring together the developer, non-profit, lender, and equity communities in an effort to facilitate Sandy-related development.
Among the topics to be analyzed are government incentives, including The Federal New Markets Tax Credit Program, the $16 billion of Sandy CDBG grant funds to funded by HUD to New Jersey and New York, and the federal EB-5 program, an economic stimulant that allows foreigners to obtain entry visas in exchange for investing $1 million or more in American developments ($500,000 if the development is in a high-unemployment market).
Joining Momjian, who also chairs the Duane Morris Affordable Housing, Community Development, and Syndication Practice Group, will be:
Margaret Anadu, a vice president in the Urban Investment Group (UIG) at Goldman Sachs; Jonathan Gouveia, senior vice president at the New York City Economic Development Corporation (NYCEDC) and head of the Strategic Investments Group (SIG); George L. Olsen, managing principal of the New York City EB-5 Regional Center; Andy Rachlin, a vice president & market leader at The Reinvestment Fund, a community development bank.
“It’s not often you see a panel with the breadth and depth of experience and hands-on, how-to knowledge,” Momjian said. “Sandy created so much devastation in this region, some coastal and low-lying neighborhoods are still not back to where they need to be, and for many developers it’s all about post-Sandy projects. Whether you’re looking to rebuild a damaged hospital in the Rockaways or develop affordable housing in New Jersey, you really need to know what’s available in terms of debt and equity financing.”
To register for the complimentary seminar go to www.duanemorris.com/events/event2028.html).