Finance and Funding

A successful project is dependent on adequate capital financing that may include land and construction. Since you will be establishing a design and construction team, the funding will be an important factor for real estate, designers, contractors and material suppliers. There are a large selection of financing techniques. Pending the size and scope of the project, this will be a significant consideration at the outset.

For private facilities such as office and warehouse buildings, there may be different financing arrangements during the construction period and during the period of facility use and operation. During the latter period, mortgage or loan funds can be secured by the value of the facility itself. Thus, different arrangements of financing options and participants are possible at different stages of a project, so the practice of financial planning is often complicated. Finance is also a concern to the other organizations involved in a project such as the general contractor and material suppliers. Unless an owner immediately and completely covers the costs incurred by each participant, these organizations face financing problems of their own.

You may want to consult with the State industrial development group to determine the availability of Industrial Development Bonds which are tax-exempt Private Activity Bonds issued by a state or local governmental entity on behalf of manufacturing facilities to finance qualified capital projects. In some cases the manufacturer can receive lower interest rate on the financing than comparable taxable or conventional financing.

You may also consider consulting with a developer who would buy land, finance the real estate deal, build or have builders build the projects and orchestrate the process of development from the beginning to end.

There are many ways to pursue financing and you will want to consult with experts in the field.