[BoulderCouncilHotline] Tranches and why early investments have upside

[Grano, Jill]

Good morning, Council, Staff and HOTLINE.

The silver lining of a 1am end time was that it was a stunning night sky last night!

I know Council made it clear that Boulder is not interested in new funding mechanisms in our Opportunity Zone, but if the zone does remain in place, I thought I would send you an audio clip of Tony Nitti, who explains the benefits of the different tranches MUCH better than I did last night.

If council does decide that Boulder wants to attract investment to riskier projects like affordable housing (yay!), then these tranches help explain why being ready earlier is better.  If you can’t assure investors that the project has upside on the back-end (which can be hard with affordable housing projects), then it’s good to get investors in early because you can at least assure them that the basis on their original gain will go up (yay, because their deferred taxes will be lower).

I hope this helps!

PS. The audio file doesn’t work for me when I click it directly from the link, but if I download it or send it to myself as a message it comes through. If you have issues with it, I will text it to you!


Jill Adler Grano
Boulder City Council
303-917-6810

“Where the mind is without fear and the head is held high. Where knowledge is free. Where the world has not been broken up into fragments by narrow domestic walls. Where words come out from the depth of truth. Where tireless striving stretches its arms towards perfection. Where the clear stream of reason has not lost its way into the dreary sand of dead habit. Where the mind is led forward by thee into ever widening thought and action. Into that heaven of freedom, my father, let my country awake.” - Tagore
________________________________

-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://list.ci.boulder.co.us/pipermail/bouldercouncilhotline/attachments/20181219/7e531026/attachment.html 
-------------- next part --------------
A non-text attachment was scrubbed...
Name: New Recor.amr
Type: audio/amr
Size: 146086 bytes
Desc: New Recor.amr
Url : http://list.ci.boulder.co.us/pipermail/bouldercouncilhotline/attachments/20181219/7e531026/attachment.bin