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Infrastructure is the backbone of any community development. It is the foundation upon which all economic activity and job growth are based. Infrastructure installation or improvement creates several challenges. How can the communities and development agencies match timing of infrastructure improvement needs with the availability of funding sources to pay for these improvements? In a typical military base reuse scenario, infrastructure needs arise before there are any available funding sources. The CMB plan is to assist in this critical area of providing time or “bridge financing” until the actual revenues start to flow from those traditional sources of financing. The partnership of the redevelopment agencies and CMB allows bridge financing to provide the up-front capital for infrastructure. This can take the form of: providing required matching funds for state and federal grants, or by CMB funding large amounts of the required capital allocable directly to local governments, local reuse agencies, and private entities to jump start the activity of infrastructure construction, improvements or repair in order to facilitate future job creation and economic growth.
CMB Infrastructure Investment Group I will employ its capital to fund defined projects creating the backbone infrastructure for job creation and increasing regional productivity within its geographic scope of the Regional Center. The six year term of the investment agreement between CMB and the reuse agency is to ensure the former base reuse entity will be able to utilize the funds long enough to realize a return on the investment in the infrastructure improvements thus enabling them to pay back the original investment. Each investor’s $500,000 investment will be placed in the partnership and not assigned to a specific project. The various projects will have specific documentation as to the scope of the project and the jobs methodology employed to show that this project and the collective projects of the partnership meet and exceed the requirement of ten jobs per investor.
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