The creator of this website has helped to raise over $100,000,000 in grant funds for Public Market projects.
Public Markets typically need between 50-100% grant support for their capital funding – depending on their location, mission and goals. They should not need any operating support once they reach full occupancy, (typically 92-93% occupancy), in year 3 or 4 from their grand opening. To raise the millions of dollars that are often necessary to create a new Public Market, it is often necessary to cobble together many funding sources.
Funding Sources Chart
1) Initial equity – such as building ownership, brought to the table by the Market’s developer. Often, a governmental entity is able to provide the Market’s building.
2) USDA – has several programs to help plan Public Markets. For example, the FMPP program provides $100,000 grants for planning.
3) The Economic Development Administration – Federal funds that have provided millions for the development of Public Markets.
4) HHS CED provides $800,000 grants that have been used for planning Public Markets.
5) State Departments of Agriculture – have often helped to fund farmer market components.
6) Tobacco Trust fund moneys – billions have been made available through some states.
7) Direct City, County or State appropriations.
8) Direct Federal appropriation legislated for a specific project.
9) Community Development Block Grants – Federal funds distributed by Cities and Counties or States.
10) Federal transportation funds.
11) State Cultural Resources funds.
12) Heritage Tourism – funds from the National Park Service
13) Tax Increment Financing – a TIF district could help pay for infrastructure and other improvements.
14) A City Accommodations Tax – could generate significant funds for a tourism related project.
15) Federal Funds through HUD’s Office of Community Services (O.C.S.).
16) Congressional ‘earmarks’ specific legislation introduced by a Representative or Senator, setting a certain amount of Federal funding for a specific project.
17) Local and National Foundations – local Foundations will often have relevant interests. Research national foundations (or use an experienced consultant) who have supported Public Market programs or research.
The owner of this website utilized 40% of the renovation value in Historic Tax Credits to help raise $13,000,000 in grants to rehab the Grove Arcade for a Public Market.
18) Create a Business Improvement District – that could provide local matching funds.
19) Historic Tax Credits – State Credits vary from 0% to 25% depending on the state. The Federal Credit is currently, an additional 20%. Tax credits are available for rehabilitation costs relating to ‘basis’ for buildings on the National Register of Historic Places. Complex legal agreements and private partners are necessary to allow non-profit corporations to take advantage – get experienced help.
20) Sale or lease of surrounding properties – controlled by the Market’s developer – whose value is increased by the creation of the Market.
21) Local and National Corporate Grants.
22) Grants from individuals – who believe in the mission and goals of the Market and/or are surrounding property owners who stand to benefit from the Market’s creation.
23) Donation of a facade easement – another complex transaction that requires assistance from a seasoned professional.
24) New Market Tax Credits – a program that allows a 39 % percent credit over 7 years (30 percent effective net present value) to investors in community development projects.
25) Conventional Financing – through a local or community development bank.
26) Program Related Investments (PRI’s) – low interest, low cost loans from supportive local or national Foundations.
27) Section 108 Loan Guarantee – A program that allows Government entities to commit downstream revenues from HUD’s Community Development Block Grant (CDBG) program to guarantee a loan to an eligible CDBG program such as a Public Market.
These are a small sampling of possible funding sources. There are many others. The owner of this website has drafted a manuscript at the behest of the Ford Foundation on Funding for Public Markets. Contact Aaron Zaretsky at 828 645-9291 with any questions.