Strategic Alliance Offers New Opportunities
Almost by definition, a community’s critical need for economic development financing runs countercyclical to its budgetary surpluses. As a result, many valuable economic development programs are “crowded out” of an annual budget by the need to fund more pressing, basic government functions during times of extreme budgetary constraint.
In cooperation with O’Brien-Staley Partners (OSP), economic development practitioners across the country are discovering the means to bridge the normal “boom and bust” cycles of economic development funding. Beyond simply becoming self-funding, in many cases these economic development agencies have actually become net contributors to (rather than recipients from) their municipality’s general fund – thereby easing the burden for all departments during a budgetary drought. As a result of OSP strategic alliances, these economic development agencies are fulfilling their mandate and empowering their communities by:
- Recapitalizing loan portfolios with private sector capital
- Recycling their resources to take advantage of today’s opportunities
- Creating dynamic reinvesting opportunities through the secondary markets rather than waiting for future appropriations or the ultimate payoff of long-term loans