1. Easement
    The right to use the property of another which may be granted explicitly, or earned by implication.It is the legal right to use the land of another for a specific purpose, other than the right to possess that land.
  2. 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.
  3. Economic Base
    The method of classifying all product activity into two categories:  basic 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.
  4. Economic Devlopment 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.
  5. Economic 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.
  6. 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 family size which does not exceed the poverty level determined by the Office of Management and Budget (OMB).
  7. Economies of Scale
    The phenomenon of production where the average cost of production declines as more of the product is produced.
  8. 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.
  9. Effective Rent
    The actual dollars collected over term of the lease divided by the number of months.
  10. 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 price.
  11. Eminent Domain (condemnation)
    (See Condemnation) 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.”Eminent Domain is the authority while condemnation is the act of using eminent domain.
  12. Empowerment Zones/Enterprise Communities (EZ/EC) Initiative
    Established in 1994 and administered by the Department of Housing and Urban Development and Department 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, while employers in the EZ/EC receive tax credits for new hires and accelerated depreciation credits.
  13. Enterprise Zone (s)
    An area designated by a city and certified by the state to receive various tax incentives and other benefits to stimulate economic growth.

    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.  States can generally set out in the state enterprise zone program.
  14. 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, other local governments designated as central cities of metropolitan areas, and urban counties with populations of at least 200,000 (excluding the populations of entitled cities.)  The State CDBG Program offers funds to the states, which they then allocate among localities that do not qualify as entitlement communities.
  15. Environmental Impact Statement (IES)
    A detailed report that documents the impacts and consequences of a development or project on the environment to satisfy the requirements of the National Environmental Policy Act.
  16. Equalized Tax Rate
    The local tax rate multiplied by the ratio of the assessed value to the market value of real property.
  17. Equity Capital
    It is an ownership investment into a project with no predetermined schedule for paybacks.  It bridges the gaps between debt financing and the cost of the project.  It is subordinate to debt financing, i.e. if the project performs poorly or fails, proceeds go to pay off the lenders first.
  18. Exactions
    Conditions to development approval. Exactions may take the form of mandatory dedications of land for roads, schools, or parks as a condition to plat approval, fees in lieu of mandatory dedication, water or sewer connections fees, and development impact fees.
  19. Externality
    A side effect of production or consumption that is not paid for.  Pollution is a negative externality of oil refining, while the building of roads has a positive externality for later generations who use it.
  20. 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.
  21. Financial Leverage
    Use of debt to decrease equity investment and increase the expected return on equity.
  22. Fiscal Impacts
    The direct and indirect costs incurred and revenues received by local governments resulting from land use and other types of decisions.
  23. 501(c)(3)
    Approval given by the Internal Revenue Service 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.  The organizations described in 501(c)(3) are commonly referred to under the general heading of “charitable organizations.”
  24. 501 (c)(6)
    Approval given by the Internal Revenue Service granting exemption from federal income tax to a business league, under Section 501(c)(6) of the Internal Revenue Code.  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.  No part of its net earnings may inure to the benefit of any private shareholder or individual and it may not be organized for profit or organized to engage in an activity ordinarily carried on for profit.
  25. Fixed Costs
    Costs that are independent of the level of production (e.g. rent or mortgage); the opposite of variable costs.
  26. Fixed Price/Lump-sum contract
    It stipulates a fixed price in the contract, which includes the contractors' fees, overhead, and profits independent to the final cost of the project.  The contractor is not liable for costs for other items such as labor and materials.
  27. Floor Area Ratio
    The ratio of permitted gross floor area of a building in relation to the size of the lot.
  28. Foreclosure
    A legal proceeding or action taken by one party to take possession of a property owned by another.  This process is typically associated with lenders taking possession of collateral pledged to secure a loan or mortgage as a result of a loan default.
  29. Form-based Zoning
    Zoning that restricts development based on a generic description of design without regard to use.  Example:  building must go to front lot line with setbacks of 20 feet.
  30. Fron-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.
  31. Full faith Credit
    Federal Government clause involving loan guarantees that allow the government to guarantee loans by promising to use it taxing power.
  32. 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 (financing that covers the difference between what a project can support an d the cost of a development or purchase.)
  33. General Contractor
    The firm or individual, required in most states to be licensed, responsible to the owner for the overall coordination and administration of the building process.
  34. General Fund
    The portion of a municipal budget devoted to basic administrative functions.  It includes funds that are not otherwise earmarked for specific uses.
  35. General Obligation Bonds (G.O.)
    Public use bonds backed by the full faith and credit of a government entity.  GO Bonds may be repaid with general revenue or from borrowing or taxing proceeds collected by the issuer.
  36. General Obligation Bonds (limited Tax 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.
  37. General Obligation Bonds (unlimited tax G.O. Bonds)
    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 eliminations.
  38. 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 operations of the partnership.  The general partner can have control of the business and can take actions which are binding on the other partners.
  39. Gentrification
    The migration of middle-class residents into a deteriorating area.  This migrations may help to revitalize an area, but it also tends to “squeeze out” lower-income families by inflating property values.
  40. Grants-In-Aid
    A direct transfer of funds from a higher level of government to lower level government or business.  Do they mean from Federal to State/State to Local?
  41. Green Buildings
    Buildings (and construction practices) that significantly reduce or eliminate the negative impacts on the environment and occupants in five areas:  sustainable sit planning, safeguarding water and sewer efficiency, energy efficiency and renewable energy, conservation of materials and resources, and indoor environmental quality.
  42. Greenfield Development
    Development that takes place on large tracts of previously undeveloped land in rural and suburban areas.  Examples of this type of development include industrial parks, technology parks, and commercial development at highway interchanges.
  43. Gross Rent
    Rent potential prior to any deductions for vacancy and operating expenses.
  44. Gross Sq. Ft.
    Usually refers to gross area of a building by measuring from the outside of its exterior walls and including all vertical penetrations such as elevator shafts.  It is also includes basement space.
  45. Ground Lease
    A financing tool in which the lessee, such as a developer or business, obtains use of a parcel of land from a lessor, such as a municipality, in return for periodic rent payments.  If there is an improvement on the property, the lease is generally based on that portion of value attributable to land.  At the end of the lease, the land and improvements revert to the landowner.
  46. Guaranteed Maximum Price (GMP)
    Is similar to a cost-plus contract, but here the contract guarantees that the final cost of the project will not exceed the maximum amount, except in case of changes desired by the owner/developer.
  47. Hard Costs
    Bricks and mortar costs of development, including contractor’s fee and overhead.Development costs, which include labor and materials; these costs are often referred to as "bricks and motor" costs.
  48. Holding Costs
    A term used by economic developers denoting the costs of owning land or property during the pre-development stages of a project.
  49. HOME investment partnership program
    The HOME program was created under the National Affordable Housing Act of 1990.  HOJME 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 designed to stimulate creative partnerships with nonprofit community-based development organizations.
  50. Horizontal Development
    Infrastructure development and site preparation.
  51. Housing development corporation
    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.  Generally, community residents, local business people and government officials have representation on its board of directors.
  52. Housing Finance Authority (HFA)
    State agencies which are responsible for the financing of housing and the administration of subsidized housing programs.  State HFAs also allocate Low-Income Housing Tax Credits and tax-exempt bond authority in each state.
  53. HUD (US dpeartment of housing and urban development) 
    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.”  Major programs include Community Development Block Grants (CDBG) to assist communities with economic development, job opportunities, and housing rehabilitation; fair housing education an enforcement; Section 8 subsidized housing; homeless assistance; HOME Investment Partnership Act to develop and support low-income housing; and mortgage and loan insurance through the Federal Housing Administration.
  54. 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.Financial contributions imposed by communities on developers or builders to pay for capital improvements within the community, which are necessary to service/accommodate the new development.
  55. Incentives
  56. 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.
  57. Inclusionary Zoning
    Zoning that encourages affordable housing, often through a density bonus.  To get the additional density, new construction must include a set percentage of affordable housing units (or make a payment into a fund to support the development of nearby affordable housing.)
  58. Income Statement
    A financial statement that derives the net income of an entity by summarizing the sources of current revenue and the costs associated with obtaining that revenue.
  59. Indemnity
    A written agreement in which a party agrees to reimbursement a second party for any loss, expense or damage.  (in this book for brownfield expenses not identified by BEAs)
  60. Indirect Financing
    The provision of funds from a lender to a borrower through another entity, process or incentives.  Examples of indirect financing include guarantees of loans, linked deposits, and tax breaks and credits.
  61. Industrial Development Bonds (IDB or IRB) 
    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 and regulations, if the interest on the bonds is expected to be exempt from federal income taxation.A source of funding available to municipalities, states, and in certain cases, development agencies to finance the construction or purchase of industrial, commercial, or manufacturing facilities, and/or equipment for private use. IDBs are backed by the credit of the private user and generally are not considered liabilities of government entity that issued the bond. The authorization to issue IDBs is provided by state statute.
  62. Industrial revenue Bonds
    Bonds that provide lower-cost financing for real property improvements, or the purchase or construction of buildings facilities, or equipment.
  63. Industry Cluster
    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.
  64. 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.
  65. Internal Rate of Return
    The true annual rate of earnings on an investment.  It equates the value of cash returns with cash invested.  It solves for the rate in which the present value of cash out flows equals the present value of cash in flows.
  66. Investor Networks
    Investor networks match up potential investors (either anonymous “angel” investors or known investors) with start-up firms needing capital.
  67. 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.The public acquisition of and reservation of land for future use.
  68. Land Write Downs
    The public sale of land for less than its market value.  The difference between the land's actual value and its sale price is effectively a subsidy, an incentive for developers.
  69. Leverage
    1) The relation of debt to equity; the use of borrowed funds by an entity.  2) The use of incentives to induce private sector lenders, individuals or businesses to invest capital in a designated area, project or business.
  70. Liability
    Financial obligation to an outside party to be satisfied in the future.
  71. Lien
    A legal claim of one person on another person's property for security against repayment of a debt or obligation for services.
  72. Lifestyle Center
    Most often located near affluent residential neighborhoods, a lifestyle center caters to the retail needs and lifestyle pursuits of consumers in its trading areas.  It has an open-air configuration and includes space occupied by upscale national chain specialty stores.  Other elements help make the lifestyle center serve as a multi-purpose leisure-time destination, including restaurants and entertainment, design ambience, and amenities such as fountains and street furniture that are conducive to casual browsing.
  73. Linked Deposits
    The practice of tying the deposit of public money in a commercial bank to conditions regarding the bank's lending and investment practices.
  74. Liquidity
    The ability to convert assets to cash quickly without loss of market value.  It also refers to the ability of an entity to meet its current obligations.
  75. Liquidity risk
    The uncertainty that an entity may not be able to liquidate its assets to meet demands for cash withdrawals, requiring the entity to sell it assets at a loss.
  76. Loan Packaging
    Help a business structure on an overall financial plan and prepare the application package to apply for financing.
  77. 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.
  78. Local Ruse Authority
    Agencies that oversee the transition of US Department of Defense facilities from military to civilian/commercial use.
  79. 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.
  80. Location Quotient
    The percentage of total local employment in a particular industry compared to the percentage of total national employment in that same industry.
  81. Long-Term Financing
    The major source for project financing, often called permanent financing.  It typically comes in the form of a conventional mortgage loan with a maturity of 25 to 40 years.
  82. 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.
  83. Low Income Neighborhood
    A neighborhood that has at least 51 percent of its households at or below 80 percent of median income for the area.
  84. 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 US Housing Act of 1937, a household whose annual income adjusted for family size is at or below 80 percent of the median income in a particular metropolitan area, as determine by HUD, is considered to be low-income.
Card Set
Terms E-L