Writing an annual report can be a very daunting and time-consuming task. What to include? What not to include? How much information is too much? And, inevitably, what (or rather who) did we forget to mention (or thank)? So much has gone into making the year that was and to sit down and try to wrangle all of this into one swift short report is nearly impossible. Nonetheless, we have given it our best shot in hopes that you will enjoy the annual recap of CDFA’s most exciting developments this past year.

It has been another exciting and very successful year for the Council as we have grown and expanded our reach into the broader economic development finance industry. CDFA added new members, passed legislation, added a new training course, added new staff, moved into new offices, elected new board members, grown revenues, built new initiatives, added resources and capacity, and improved communications. Through the leadership of the CDFA Board of Directors and CDFA Board President Gary Smith from the Chester County Industrial Development Authority, the Council has made great strides over the past year.

Membership:

CDFA added 35 new members over the past 12 months. This is the largest membership growth in a single year for the organization ever. The Membership Committee, lead by CDFA Board Member Rick Palank from the St. Louis County Economic Council, convened throughout the year to develop new member benefits and build innovative recruitment/retention strategies. These efforts paid off with the large increase in new members. New members in 2005 include the following:

A.G. Edwards & Sons, Inc.
Bingham Arbitrage Rebate Services, Inc.
Bristol, TN Housing & Redevelopment Authority
Cimarron Business Capital
City of Millville, NJ
Connecticut Development Authority
Downtown Development District
East Montgomery County Improvement District
Economic Development Corporation of Pierce County
Enterprise Florida
Erie County Industrial Development Agency
Financial Advisory Services of Oklahoma
First American Bank
FUTURO Communities, Inc.
Griggs-Steele Empowerment Zone
Gulf Coast Waste Disposal of Texas
Idaho Housing and Finance Association
JEDCO Jefferson Parish Economic Development Commission
JP Morgan Trust Company NA
Lake County Partners
MB Financial
Mercer County Improvement Authority
Mission Economic Development Corporation
Mohawk Valley Economic Development District
New Mexico Finance Authority
North Carolina Agricultural Finance Authority
North Little Rock Economic Development
Overland Capital Corporation
Peckham Guyton Albers & Viets, Inc
Real Estate Professionals
Saint Paul Port Authority
Summit County Port Authority
Tri-County OK CDC
Tulsa Port of Catoosa
Virginia Economic Development Partnership
Wachovia Bank
Zenith Assets, Inc.

CDFA's website converted to a Members Only format in late 2005. The new Members Only section provides exclusive content and access to the resources available in the Online Resource Database. An official email with log in instructions will be sent out during the first part of January for each member. Members will also be able to update their account information, addresses, phone number and email online through the new system.

Legislative Success:

CDFA’s legislative efforts paid off in 2005, as the Council was again successful in getting two items introduced in the United States Congress. The Legislative Committee, led by CDFA Board Member Bob Lind from the City of Minneapolis Department of Community Planning & Economic Development, finalized the Council’s legislative agenda in early 2005 and quickly disseminated this report throughout Capitol Hill.

In mid June, CDFA’s lobbyist, John McMickle, was able to persuade Congressman Phil English (R-PA), member of the House Ways and Means Committee, to introduce the Bond Financing Renewal Act of 2005 in the House of Representatives. This important legislation (H.R. 2941) specifically addressed CDFA’s 2005 legislative agenda by accelerating the capital expenditure increase date up to 2006, from the recently approved increase to take effect in 2009. As you may recall, in 2004 CDFA was successful in getting the capital expenditure limitation for the use of IDBs increased from $10 to $20 million effective in 2009. At the time, CDFA had expected the effective date for this legislative item to be immediate. The measure also proposed the removal of certain restrictions, which would allow Industrial Development Bonds (IDBs) to achieve bank-qualified status. CDFA immediately launched a massive grassroots lobbying effort and ultimately contacted over 250 House offices seeking support for the bill. Unfortunately, the pressing demands of the nation have caused the bill to stall in the House Ways and Means Committee where it is currently pending.

On a brighter note, CDFA was successful in passing another bill through the United States Senate in mid-November that directly addresses the Council’s legislative agenda. With the help of CDFA member Ben Avery with the Wyoming Business Council and lobbyist John McMickle, CDFA was able to partner with Senator Craig Thomas (WY) to pass an amendment to the Senate tax cut reconciliation bill which will advance the capital expenditure increase date for the use of IDBs from September 30, 2009 to December 31, 2006. The amendment was passed by the full Senate but was not included in the House reconciliation bill. The two sides are expected to go to conference on the bill in early 2006 and CDFA will monitor the situation closely throughout the legislative process.

The true success of CDFA’s legislative efforts lies with all of those who wrote letters and made contact with Congressional offices during the past year. This year, CDFA has contacted and, more importantly, educated more of our nation’s leaders than ever before. With assistance from Elia Cholakis, CDFA’s former legislative intern, and the entire Legislative Committee, the Council has laid a strong foundation for future legislative advancements in Washington, DC.

Educational Advancements:

2005 was another banner year for CDFA’s highly acclaimed Development Finance Training Institute (DFTI). The DFTI conducted six total training events this past year. This included the Industry Primer: Development Bond Finance Course and the Advanced Bond Finance Course, which were both sell-outs for the third year in a row. Led by Stan Provus, CDFA’s Training Director, these courses once again proved CDFA’s leadership in the bond financing industry.

CDFA also conducted two Field Seminars in 2005. The first seminar was held in partnership with the Georgia Institute of Technology, Economic Development Institute (GT EDI) in Atlanta, Georgia. Over sixty local economic development finance professionals attended the one-day seminar. CDFA would like to thank Martha Schoonmaker with the GT EDI for helping to bring CDFA to Georgia. The second field seminar was held in partnership with the Ohio Economic Development Association (OEDA) and the Ohio Department of Development (ODOD). CDFA members Jerry Good from the Allen Economic Development Group and representing OEDA and Jill Guzdanski from the ODOD were vital in helping establish this field seminar. The seminar was held in Columbus, Ohio and generously sponsored by CDFA Board Member Jeff Freese through KeyBanc Capital Markets and Key Bank.

CDFA also held a special tailored bond-financing course in partnership with the International Economic Development Council (IEDC). This course, held in Philadelphia, was a combination of CDFA’s bond financing courses and was another successful event. CDFA would like to thank Jeff Finkle, President and CEO of IEDC for helping to establish this partnership.

The most exciting news in 2005 on the educational front was the launch of CDFA’s newest training course: The Tax Credit Finance Course held in October in Washington, DC. This new initiative was developed by CDFA’s Education Committee, chaired by Board Member Mark Huston from Cimarron Business Capital and launches the Council into a new and exciting area of development finance. The course was a major success and was a sell-out with over 70 people attending the first ever event. CDFA plans to offer this course again in 2006.

New Tax Increment Finance Coalition (TIFC) Launched

CDFA has taken the lead nationally, to create the new Tax Increment Finance Coalition (TIFC). The TIFC will be a standing coalition within CDFA dedicated to those professionals and organizations working in the tax increment finance industry. Tax increment finance is one of the most widely used forms of development finance today. Currently there are no national organizations dedicated to tax increment finance. CDFA has changed this by initiating the TIFC. The Council envisions the TIFC as a national clearinghouse for education, resources, networking and information sharing in the TIF industry. CDFA and its working TIFC Steering Committee, led by Board Member Joe Branca with Banc of America Securities LLC and Marc Hughes with First Albany Capital have spent the past several months laying out a plan of action for the TIFC. The Coalition officially met in October in Washington, DC to kick off this initiative and is currently planning a Pre-Summit TIF Workshop prior to the 2006 CDFA Annual Development Finance Summit in Austin, Texas. The CDFA website has complete information on this initiative.

Another Great Annual Conference

In 2005, CDFA celebrated its 19th annual conference in beautiful Phoenix, Arizona. The 2005 Annual Conference was a major success with over 225 individuals attending which marked the largest annual meeting in the Council’s history. The meeting included two and a half days of presentations, discussions and demonstrations on new and innovative approaches to development finance. The Conference Planning Committee, lead by Board Members Caren Franzini from the New Jersey Economic Development Authority and Frances Walton from the Empire State Development Corporation, planned a great agenda that covered more topics and a greater scope of development finance than previously seen at a CDFA conference. The Phoenix Host Committee, led by CDFA Board Member Juan Salgado, fellow colleague Grant Belter from the City of Phoenix and Bill Brice from the Southwestern Business Financing Corp. helped generate interest and sponsorship throughout Arizona and were vital in the conference’s success. For those members who were unable to attend the 2005 Annual Conference, the post-conference presentations are available on the CDFA website in the Members Only section. Click on the Annual Summit link on the home page to be directed to the post conference web pages.

2006 Annual Development Finance Summit

Next year CDFA will head to Austin, Texas for the 2006 Annual Development Finance Summit. The CDFA Board of Directors has officially changed the name of the Council’s annual meeting to the Annual Development Finance Summit. This change was prompted by the success of last year’s conference and the Council’s desire to stand out from other conferences as the premier event of the year. The 2006 Annual Summit will be hosted by AngelouEconomics, a technology-based economic development consulting firm that has helped reshape the economic landscape in Austin over the past 20 years. The Austin Host Committee, lead by Board Member Lee Ann Woods from Sierra Strategies and AngelouEconomics have been assisting CDFA with identifying partners, speakers and potential sponsors for the Summit. CDFA expects next year’s 20th annual event to be the biggest in the history of the organization as we celebrate 20 years of development finance. The new Annual Summit website is now up and running at www.cdfa.net. Check out the complete program and register early to take advantage of early-bird rates.

Sponsorship Growth

CDFA is very fortunate to have consistent sponsorship assistance over the past few years. And, sponsorship continues to grow as the Council solidifies itself as the premier development finance organization in the country. In 2006 CDFA brought JP Morgan Chase Bank on as a Platinum Sponsor of both the 2005 Annual Conference and upcoming 2006 Annual Summit. This new partnership has helped CDFA establish sound sponsorship footing and is a great new relationship for the future of both organizations. CDFA would like to thank Board Member John Doherty and fellow colleagues Marty Dean and Mike Puskar at JP Morgan Chase Bank for their efforts in securing this generous sponsorship.

CDFA also launched a new National Sponsor Program in 2005 that has attracted a number of major sponsors for the organization. National Sponsors make a yearlong sponsorship commitment to CDFA of either cash or in-kind contributions totaling $8,000 and receive recognition at CDFA's four most popular events. In addition, National Sponsors receive recognition at all meetings of the Tax Increment Finance Coalition (TIFC) and a complimentary CDFA membership. National Sponsors allow CDFA to plan in advance each year and help solidify the organization’s financial foundations. This sponsorship category gives organizations a special opportunity to be part of the premier development finance organization in the country. Current National Sponsors include GE Public Finance, The Bond Buyer, KeyBanc Capital Markets and First Albany Capital.

CDFA is accepting requests to become a National Sponsor on an ongoing basis. This is a great way for public finance companies to get involved with CDFA and really become involved in shaping the direction of the Council for years to come. For more information on how to become a National Sponsor, visit the National Sponsor web page on the CDFA website.

Growing Our Capacity to Serve

CDFA has worked hard in 2005 to grow the organization’s capacity to serve the development finance community. In early 2005 the Council launched the new Online Resource Database that includes over 300 links to publications, articles, news stories, reports, presentations and fact sheets covering a wide range of topics in the development finance industry. CDFA staff adds new content to the database daily and this has become an excellent member benefit that will help drive the growth of CDFA in the future.

The Council also revamped the overall website throughout 2005. The new and improved website provides ease of use and more resources than ever before. The revamped website also includes a number of new features including the CDFA Member Directory, CDFA Fact Sheets, CDFA Flash Email Service, The Learning Corner and a new Career Services page. The website will transition to a Members Only format starting in 2006, with information forthcoming on how members can access the exclusive content. The new website also features the Council’s new logo and links to the new TIFC initiative and upcoming events.

Finally, CDFA took another big step in 2005 with the hiring of Alex Iams as the Council’s new Director of Research and Technical Assistance. Iams comes to CDFA from the International Economic Development Council (IEDC) where he was an ED Associate in the Advisory Services and Research division. Iams will lead CDFA's newly developed technical assistance and research elements. Iams will also be the lead manager of the Council's new Tax Increment Finance Coalition (TIFC).

Iams' work at IEDC included a number of important projects and program. As a member of the IEDC Technical Assistance team, he has worked on a number of local, state and federal contracts servicing a wide range of clients and interest. Most notably is his work with the Environmental Protection Agency (EPA), to produce a detailed publication titled Targeted Area Redevelopment. This publication examines core issues and best practices in targeted area redevelopment, which derives synergy from the improvement of multiple properties. Based on interviews with redevelopment practitioners across the country, this research illustrates how communities designate an area for redevelopment and use powers to: 1) acquire land; 2) return land to the private sector; and 3) designate tax increment financing districts. We are excited to have Alex as the newest member of our CDFA team.

The success of CDFA over the past 14 months has prompted this new position as the Council looks to develop new programs and services for members and nonmembers alike. The new Research and Technical Assistance (RTA) Program will be the organization’s attempt to assist communities and development finance professionals directly. CDFA also plans to initiate discussions with a number of federal agencies to provide assistance in delivering sound development finance research and reporting.

Office, Staff and Board Changes

CDFA found a permanent home in 2005 in Cleveland, Ohio. The Council relocated to new Cleveland offices in August in an effort to streamline operations, reduce expenses and bring staff back together. With the departure of Amy Archer, who had served CDFA for many years out of an office in Athens, Ohio, we began to re-evaluate the current office arrangements. The final decision was to relocate to Cleveland with the hiring of Katie Kramer in September as the new Development Coordinator. Kramer comes to CDFA from Ballard and Tighe, Publishers and Scripps College with experience in project management, sponsorship and membership development. Katie has been a great addition to our team in the new Cleveland offices. CDFA’s Executive Director, Toby Rittner, relocated to Cleveland as well in 2005 to reunite the staff into one central office. CDFA continues to have staff spread throughout the country but have permanently relocated to the Cleveland offices as the official address of the organization. CDFA’s lobbyist, John McMickle will continue to operate out of Washington, DC.

The CDFA Board of Directors, under the leadership of Board President Gary Smith also made some significant changes in 2005 with the addition of several new members. The Nominating Committee, lead by Board Member John Doherty from JP Morgan Chase Bank recommended the addition of the following individuals to the Board of Directors:

Gus Kourkoulis from the Bank of New York,
Daniel Harrison from the League of California Cities,
Steven Berzin Executive from the New York City Economic Development Corporation,
Matt Tuohy from the Indiana Finance Authority,
Jill Rendleman from the Illinois Finance Authority,
Victoria Pruett from the Oregon Economic and Community Development Department,
Juan Salgado from the City of Phoenix, Finance Administration,
John Witherspoon from the Finance Authority of Maine,
John Kerr from the Detroit/Wayne County Port Authority,
Lee Ann Woods from Sierra Strategies, and
Frank Bordeaux from the North Carolina Agricultural Finance Authority

In addition to this, CDFA named Norma Lammers from the California State Association of Counties as its first Emeritus Director. Norma has served on the CDFA Board for many years and was given the Emeritus Director status in honor of her dedication to CDFA. A complete CDFA Board of Directors roster can be found online at www.cdfa.net.

Looking Forward

2006 stands to be another great year for the Council. With an ambitious growth strategy and plan in place, CDFA will continue to develop as the premier organization serving the development finance industry. Membership services, research and capacity building remain a major focus for the coming year.

CDFA’s educational programs will be presented again in 2006 with the Advanced Bond Finance Course in February, the Industry Primer: Development Bond Finance Course in August and the Tax Credit Finance Course in October. All three courses will be held in Washington, DC. We also plan to offer two Field Seminars in 2005 and are currently arranging locations and hosts for these events. The TIFC will meet again in May and October to continue to advance this initiative. And, of course, the 20th Annual Development Finance Summit will be held in Austin, Texas from May 31-June 2.

Membership, sponsorship and events help to generate the needed revenues for the Council to continue to pursue its important legislative agenda. Next year will be another demanding year on Capitol Hill but the board and staff are confident that CDFA can again achieve success in moving our legislative agenda forward. We have hired a new legislative intern who will begin to mobilize another grassroots effort around the Senate/House reconciliation tax bill that is currently pending. It will, however, take another team effort from all of CDFA’s members and stakeholders to get this bill passed. Visit the CDFA website often for more information as it develops.

2006 offers great promise and advancement for CDFA. To achieve our goals and objectives it will take a team effort and a steadfast commitment from each and every member. With your help we can ensure that CDFA continues to be development finance at its finest.

From all of us at CDFA, have a Happy New Year!

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