ABSTRACT
In the public-private community development is where you would seek an area which has experienced disinvestment. Normally, it’s in a very urban corridor of a city and you would revitalize that area by creating a product that the community needs. The interest on the debt and the equity, the impact fees, all the fees, all of the soft and hard costs, to produce an end product. It will strike certain numbers that will attract investors. So, there are hurdles. One would be an internal rate of return which simply is the interest rate that an investor gets on their money at a project level. The profitability is somewhere in the 20% range which are huge numbers and after the investors and the bank it paid off, there’s actually a very nice payroll for the people who worked so hard to make it happen.
