THE ARGENTA PROCESS
ECONOMIC DEVELOPMENT PROJECTS
In the current economic environment, the main issue facing business growth is the credit market. Financially strong companies are choosing not to enter into new markets or build new facilities due to the lack of reasonable financing options. Most lending institutions are loaning only 50% to 60% of project costs with terms of 10 years or less. Even financially strong businesses are not willing to use operating cash to finance new facilities under these terms. Tax incentives, while still of interest, do not address the financial need. If a community is to attract new economic growth, it will have to offer a different incentive.
The Argenta Group financing option uses a public-private financial relationship that benefits both the public entity and the private business. The community entity achieves desired economic development and synergy, new jobs and new tax revenues. The private business receives facility financing otherwise unavailable.
QUOTES
With thousands of public-private partnerships in place through the country, providing a myriad of services to citizenries, there is an ample body of hard evidence with which to evaluate the value and effectiveness of these partnerships, and to assess the wisdom of governments in establishing them.-- The National Council for Public-Private Partnerships, "For the Good of the People: Using Public-Private Partnerships To Meet America's Essential Needs," pg. 6
ARGENTA ADVANTAGES
- Once the public entity has chosen a business of interest, the process of creating the public-private relationship is straight forward and simple.
- The terms and costs of financing are very attractive for a private business.
- The private business still designs and works directly with contractors and architects to create a project that works for them.
- At the option of the public entity, the private business can exit the public-private partnership arrangement during the agreement term by refinance.
- At the option of the public entity, the private business will be entitled to end of term equity build up.
- The public entity has the option of generating monthly revenues from the public/partnership in addition to tax revenues.