Growth Monitor for Economic Development

Tracking the issues, programs, incentives, tax matters, and "lessons learned" affecting local economic development.

Mixed-Use Redevelopment Entitlement and Permits

The EB-5 Program is Reauthorized

President Biden signed legislation today with the effect that the EB-5 program is reauthorized, in particular its Regional Center component, effective now through September 30, 2027. The program is part of the EB-5 Reform and Integrity Act of 2022 (the “Act”), which itself is part of the Omnibus spending bill signed by the President.

The reauthorization of the Regional Center program follows an almost 9 month lapse, when prior efforts failed to extend the program beyond July 1, 2021. The Regional Centers aspect of EB-5 have allowed foreign investors a special opportunity to invest in high-profile developments that they likely would not otherwise find accessible. The EB-5 program had its controversies and numerous parties had worked to place safeguards to prevent fraud and encourage investment in areas that followed from the original intent of the program.

The EB-5 program allows foreign investors to invest a specified amount of capital into a U.S. enterprise that creates American jobs, in return for permanent residency. With passage of the EB-5 Reform and Integrity Act of 2022, changes were made to the program to presumably improve its implementation. The new legislation emphasizes compliance with EB-5’s intent along with enforcement procedures. Program sponsors under EB-5 will face greater scrutiny in recordkeeping, investment types, audits, and investor communications. The minimum EB-5 investment amount now increases to $800,000 from the current $500,000 for Targeted Employment Areas and Rural Areas, and, changes to $1.05 million from the current $1.0 million for Non-Targeted Employment Areas. These changed minimum investments apply to both regional center and direct EB-5 investments.

With the news that the EB-5 Program is reauthorized, a backload of foreign investors who were in the midst of processing last June, will hopefully soon see progress in the processing of their investment / visa applications.

The EB-5 Immigrant Investor Visa Program was created in 1990 by the Immigration Act of 1990.

11.03.2022

Rep. Haaland Nominated to Lead Interior Dept.

Rep. Haaland Nominated for Interior Department

Rep. Haaland is nominated to lead the Interior Department. With Senate confirmation, Rep. Haaland will become the first Native American to serve as Cabinet secretary.

President-elect Joe Biden nominated Rep. Debra Haaland to helm the U.S. Department of the Interior, a federal agency forever linked with the history of Native Americans since the nation’s founding. The Albuquerque Journal has reported that Haaland’s nomination reflects Biden’s commitment to address the historical mistreatment of Native Americans including violations of treaty obligations.

The Interior Department administers roughly 500 million acres of public lands and plays a key policy role on tribal issues. In her role, Rep. Debra Haaland’s Interior Department will oversee two key tribal offices – the Bureau of Indian Affairs (“BIA”) and the Bureau of Indian Education. The U.S. Interior Department was first established in 1849, actually established after the BIA was first established in 1824 – the oldest agency within the Department of the Interior.

Rep. Haaland is a Laguna Pueblo member and is well-known for her leadership roles in tribal government, administration, and economic development programs and enterprises. Laguna Pueblo is a federally-recognized tribe of Native American Pueblo people situated to the west of metro Albuquerque, New Mexico. The Laguna Pueblo tribal reservation includes approximately 500,000 acres of land situated in Cibola, Valencia, Bernalillo and Sandoval counties.

A full article regarding U.S. Rep. Haaland being nominated to lead the Interior Department, is available at the Albuquerque Journal: Haaland gets historic Cabinet nomination

Rep. Haaland is Nominated to Lead the Interior Department

The U.S. Interior Department administers roughly 500 million acres of public lands, involving a myriad of environmental, energy, and public access issues and concerns.

17.12.2020

Economic Development Consultants for Tribes

Our work as economic development consultants for tribes and other indigenous nations has expanded with additional services and new regions covered.

StoneCreek Partners’ client work with Native American tribes and pueblos, as well as Native Hawaiians, now includes Canadian First Nation tribes and organizations. Over the years, StoneCreek Partners has also worked with indigenous nations in addition to those in North America, including those sovereign nations in the MENA region and the Pacific Rim.

The Covid-19 pandemic of 2020 has increased the interest in economic development plans that can reliably produce economic results – increased jobs, new investment, and enhanced quality of life. And sooner than later. Our economic sector analytics have an increasingly granular focus on real estate investment asset classes. This is due to some types of investment now being in question, and relatively new asset classes commanding investor attention.

Our consulting focus is on projects that can be made to happen, and less on broad programmatic objectives.

Another focus is on the feasibility of specific projects. As we act as economic development consultants for tribes we explore how development might occur in a particular region, focusing more on projects that can be made to happen, and less on broad programmatic objectives. With specific projects identified, strategic partners can be identified and pursued.

Today’s economic development strategies can include all manner of visitor destination strategies, location-based entertainment, sports mega-complexes, life sciences projects, and other development can prosper within specific locations and markets. Our experience with design management, development, facilities management, and with overall dealmaking and transactions allows us to take economic strategies through implementation.

StoneCreek Partners is a business planning and development firm, with expertise that includes commercial real estate, hospitality, location-based entertainment, and direct-to-consumer technologies. StoneCreek Partners has provided economic development planning and program implementation support to Native American tribes and their sovereign development companies, as well as to similar city, county, and state organizations.

Our firm’s essential value to clients is our hands-on experience in designing, developing, and operating projects and businesses. StoneCreek Partners is led by co-founder Donald Bredberg and his substantial experience as an executive with The Irvine Company, NBCUniversal, and the Riyadh-based family office of Newfield Enterprises International.

The firm was first established in 1984 in Los Angeles, and is now headquartered in Nevada. Our economic development consulting for tribal nations and other indigenous nations got started shortly after the firm’s founding.

Additional information about our economic development consulting practice is available at this link:

StoneCreek Partners – Economic Development Consultants

22.11.2020

29.10.2020

— The Value of Regional Visitor Destinations – for Local Economic Development

Conservation Act Passes Congress, Now Heads to President’s Desk

SCP’s The Growth Monitor

In a bi-partisan vote, a next conservation act has passed the U.S. Senate. The unanimous vote in the Senate pertains to America’s Conservation Enhancement Act, S. 3051 (the “ACE Act”), a package of natural resource management and conservation provisions. The House of Representatives is expected to take up the legislation, and vote, as early as next week.

SCP Growth Monitor update on October 1 – the House of Representatives has approved the ACE Act by voice vote; now the legislation goes to the President’s desk for signing.

Consideration of the Ace Act follows passage in August 2020 of the Great American Outdoors Act, widely considered one of the landmark legislative achievements to protect America’s natural environment.

The legislation authorizes the National Fish Habitat Partnership, an endeavor that brings together local, state and federal partners to coordinate and conduct on-the-ground aquatic habitat restoration projects for the benefit of recreational fishing. The ACE Act also reauthorizes and boosts funding for programs critical to the health of the Chesapeake Bay, the nation’s largest estuary and a critical nursery for sport fish throughout the Atlantic region.

As the bi-partisan Conservation Act passes Senate consideration, attention now focuses on regional benefit. The ACE Act is expected to be a strong boost to recreational economic development in the region. The Chesapeake Bay is the largest estuary in the U.S., and is also a critical sportfish nursery for the greater Atlantic region.

01.10.2020

10.09.2020

— Legacy of the Great American Outdoors Act

Public sector - Economic Development Consultants - Tourism Destination Strategy Consultants

New Research Reveals “Key Drivers” to Propel Urban Economies

AEC’s Growth Monitor

Researchers at Northwestern University have just published some interesting research, about “The universal pathway to innovative urban economies.” The researchers analyzed industrial employment and population changes in 350 U.S. cities between 1998 and 2013, including over 100 million workers.

Key conclusions from the research include an observation that innovative economies start to emerge when an urban population reaches about 1.2 million people. Along with this scale inference, the researchers noted that the transition to an innovative economy depends upon a a city’s ability to attract and retain certain “superlinear industries.” Superlinear industries include the arts, entertainment, professional services, science, and information technology, each of which can grow out of proportion to underlying population growth.

As reported in SciTechDaily, one of the researchers wonders if the remote work promulgated by the COVID-19 virus and distancing may slow down the rate of innovation, in general. The thinking is that innovation may require the spontaneous and serendipitous insights that come with incidental human interactions. This insight certainly rings true for those that have managed collaborative and creative teams; sometimes the best ideas emerge even as the linear ideation and problem-solving proceeds.

An excellent review of the research is available at SciTechDaily, HERE. The research as published is available for full review on the website of the American Association for the Advancement of Science, by clicking here: AAAS Research – The Universal Pathway to Innovative Urban Economies.

24.08.2020

Transfer of Development Rights Programs as a Revenue Tool for Local Governments

As local governments explore means to enhance their fiscal situation, transfer of development rights (“TDR”) programs may offer one worthy tool for immediate consideration. TDR Programs are, simply, a voluntary and incentivized (typically) means to sell all or a portion of the development rights associated with a particular property, to a third-party who can use these development rights at another property.

Successful TDR Programs will have specific objectives for “transfer out” properties (such as conservation easements) along with specific objectives for the “transfer in” properties (such as enhanced densities to increase feasibility). The “transfer out” property owner can still use the property in perpetuity (such as for agriculture or public park) for without the right to raze and further develop the “transfer out” property.

It is conceivable that local cities and counties, even states and state agencies, to create comprehensive TDR Programs that create local government TDR banks of considerable value. Particularly at a time when municipal zoning and its objectives are ripe for discussion. Consider – if “single family” residential neighborhoods are being evaluated for all manner of housing inserts, presumably for affordability, diversity, and equity purposes, … why not explore how general plan updates might include public/private (P3) partnerships across public parks where portions of parks are granted P3 development rights (fabricating new TDR’s of actual value). Such fabricated TDR’s can then be used in place, used to offset public asset operating costs, or, fully transferred as TDR’s to a “transfer in” site. With this fabricated land value that had not already existed, the local government achieves a new revenue source for sound public purpose.

07.08.2020

05.06.2019

— StoneCreek Partners Launches Project Feasibility Services for Opportunity Zones

Redevelopment Project Consultants - Real Estate Advisory Services

The Growth Monitor is Back; Tracking Local Economic Development Policies & Practices

StoneCreek Partners has re-launched a legacy brand from the earliest days of its predecessor company, StoneCreek Advisors. Albeit with a a new name, The Growth Monitor.

The Growth Monitor will take the work of “Southern California Growth Monitor” to a national and international level, tracking regulations, incentives, policy and program tools, as well as lessons learned in implementing local economic development.

Southern California Growth Monitor was first established as a client resource publication by Phillips Brandt Reddick, the mega-scale master land use planning and development organization, and later acquired by StoneCreek Advisors upon its formation. StoneCreek Advisors is a predecessor organization to StoneCreek Partners and several other companies.

01.02.2019