Financial Feasibility Analysis
PROCESS
UNDERSTANDING THE APPROACH
¢ Regulatory policies control development process
devoid of market and financial feasibility
¢ Policies can go
¢ “Too far” meaning their requirements will make
projects non-competitive, effectively eliminating
development
« “Not far enough” meaning they do not deliver the
intended purpose due to lax requirements
¢ “Just right” balance intended benefits with
market/financial opportunity cost
¢ Process to determine “just right” is both
quantitative AND qualitative
* Analyses like this one can relate policy with
market/financial performance impacts
* However, balance is relative to perspective (i.e., City
versus development community)
¢ Focus of the recommendation to create a “revenue
neutral” IZ policy
¢ Balance IZ requirements with market return
expectations
Creating an Effective Policy - Considerations
fi ~ fr
Public Private
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