Step (2) in applying for the TDFP is the Locality (EDA/IDA) has already identified a Developer partner and project which fills this Deficiency
The Developer has also found all the lending they need to complete the project, including a Lender for the primary debt, and a Lender for the amount of gap financing needed
Once that occurs the Locality is required to complete a Tourism Development Plan, with assistance form the local Tourism Office and Developer (see description below)
Tier 1 = 70/30 projects … < $100 million
- Compensates for a shortfall in project funding, not to exceed 30% of a qualified project’s total cost
- Once the project is completed and generating income, the locality works with the VA Dept. of Tax to perform a quarterly review of state sales and uses taxes collected from the project’s revenue that quarter
- 1% of the project’s quarterly revenue is the amount each partner will contribute towards debt service on the project, until debt service is fully paid
- The developer owns all debt exclusively, while the locality and state only contribute to debt service
Tier 2 = 80/20 projects … $100 million +
- Compensates for a shortfall in project funding, not to exceed 20% of a qualified project’s total cost
- For larger-scale, $100+ million projects of regional significances; excluding major retail
- Once the project is completed and generating income, the locality works with the VA Dept. of Tax to perform a quarterly review of state sales and uses taxes collected from the project’s revenue that quarter
- 1.5% of quarterly revenue is the amount each partner will contribute towards debt service on the project
- The developer owns all debt exclusively, while the locality and state only contribute to debt service
NOTE: VTC reviews the Tourism Development Plan before proceeding to Step (3) of verifying all financing and creating a performance agreement between Locality and Developer
- The plan is a template which collects project-specific information including
- A clear and mutually agreed-upon deficiency (void) in the locality’s tourism product
- An accurate representation of a locality’s current tourism product and assets, infrastructure, marketing efforts and visitor profiles; and
- The return on investment (projected tax, FTE jobs and visitor spend) the proposed project will have to the local economy
- A Locality and Developer must present a clear mutually adopted understanding of how the proposed project will meet an identified Deficiency outlined the locality’s existing community development plan or business plan
- The Tourism Development Plan document allows the Applicant to gauge the locality’s tourism infrastructure, economy and business community, as well as a community’s social and cultural assets
- This includes a brief S.W.O.T. analysis, specifying a locality’s top three (1) Strengths (2) Weaknesses (3) Opportunities and (4) Threats
- The Applicant will also be asked to supply a current or existing marketing plan adopted by your community. A marketing plan is an official, adopted plan by which an organization or community can maximize its tourism potential. It answers key questions which provide direction for a community’s tourism marketing activities. A marketing plan brings together an organization’s research, particular goals, measurable objectives, brand ideals and other important considerations in one concise, executable directive
To begin your Tourism Development Plan contact: Wirt Confroy [ [email protected] (804) 545-5552 ] or Sandra Tanner [ [email protected]) (434) 757-7438 ]
