Local Governments: Financial Feasibility Analysis for Your Revitalization Projects

<p>Do you have a revitalization project that is a local government priority? Did you know that local governments can obtain real estate development feasibility analysis by UNC graduate student teams at no charge?</p> <p>Since 2012, UNC faculty and staff associated with the Development Finance Initiative at the School of Government have worked with graduate student teams in a course on community revitalization to analyze revitalization projects for North Carolina communities at no charge. The School periodically requests project idea submissions from local government officials, and then students select their preferred projects. Student projects focus on attracting private sector investment for private (non-public) uses, such as converting a historic school into senior housing or a former fire station into a retail space (to understand what makes for an appealing student project and to submit a project online, click here). Over the course of a semester, students perform financial feasibility analysis to evaluate whether the private sector could accomplish the public’s revitalization goals, ranging from historic preservation to increasing downtown foot traffic after 5 pm. How is financial feasibility analysis useful to local governments, and how have local governments used student analysis in the past?</p> <p>The role of financial feasibility analysis for revitalization projects</p> <p>Revitalization projects are challenging. By definition, they typically involve neglected structures or underutilized land—hence the need for “revitalization.” The projects are often located in distressed or underperforming areas (usually characterized by blight, vacancy, and disinvestment), so the broader market is relatively weak. After all, if the market was strong, the private sector would have “revitalized” the [...]</p>