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EB-5 Program Reauthorized

The EB-5 Program is Reauthorized

President Biden signed legislation today with the effect that the EB-5 program is reauthorized, in particular its Regional Center component, effective now through September 30, 2027.  The program is part of the EB-5 Reform and Integrity Act of 2022 (the “Act”), which itself is part of the Omnibus spending bill signed by the President.

 

The reauthorization of the Regional Center program follows an almost 9 month lapse, when prior efforts failed to extend the program beyond July 1, 2021.  The Regional Centers aspect of EB-5 have allowed foreign investors a special opportunity to invest in high-profile developments that they likely would not otherwise find accessible.  The EB-5 program had its controversies and numerous parties had worked to place safeguards to prevent fraud and encourage investment in areas that followed from the original intent of the program.

 

The EB-5 program allows foreign investors to invest a specified amount of capital into a U.S. enterprise that creates American jobs, in return for permanent residency.  With passage of the EB-5 Reform and Integrity Act of 2022, changes were made to the program to presumably improve its implementation.  The new legislation emphasizes compliance with EB-5’s intent along with enforcement procedures.   Program sponsors under EB-5 will face greater scrutiny in recordkeeping, investment types, audits, and investor communications.   The minimum EB-5 investment amount now increases to $800,000 from the current $500,000 for Targeted Employment Areas and Rural Areas,  and, changes to $1.05 million from the current $1.0 million for Non-Targeted Employment Areas.  These changed minimum investments apply to both regional center and direct EB-5 investments.

 

With the news that the EB-5 Program is reauthorized, a backload of foreign investors who were in the midst of processing last June, will hopefully soon see progress in the processing of their investment / visa applications.

 

The EB-5 Immigrant Investor Visa Program was created in 1990 by the Immigration Act of 1990.

Office and Industrial Consultants - Local government real estate consultants

Urban Core Revitalization – Spring Street Los Angeles

City of Los Angeles CRA  |  As real estate project consultants to the Los Angeles Community Redevelopment Agency, StoneCreek Partners provided financial analysis and evaluation of illustrative deal structuring for various public-private intervention strategies to achieve the economic turnaround and urban revitalization of the Spring Street corridor in downtown Los Angeles.  The redevelopment analysis included consideration of funded public subsidies, and transferred development rights.

 

Spring Street in downtown Los Angeles was once called “Wall Street of the West,” home to numerous major financial institutions, the old Pacific Stock Exchange, and many of the city’s finest office buildings dating back to the early days of downtown Los Angeles. A 1994 strategic plan for downtown called for a mix of public and private investment in retail, housing and commercial development.

 

Over the years, various efforts have sought to revitalize the Spring Street Corridor, including the successful opening of the Ronald Reagan State Building – at the corner of Spring Street and Third Street.

 

Joint Development Strategies for Metro Rail

Joint Development Strategies for Metro-Rail

Los Angeles County Metropolitan Transportation Authority  |  Acted as local government consultants to the City of Los Angeles providing Joint Development Strategies for Metro-Rail development, including financial and market analysis, for so-called “joint pubic-private real estate development opportunities” at potential Los Angeles Metro Rail stations.

 

Joint development refers to commercial development that is encouraged at such stations stops as part of the overall regional economic strategy for such transportation development. Work effort included a market feasibility studies with financial recommendations to document the fiscal economic impact of such joint development strategies.  Our work providing joint development strategies for Metro-Rail also included identification of analogous projects from other regions, and prototypical public-private mixed-use developments at specific Metro Rail stations.

 

Los Angeles Metro Rail is an urban rail system serving Los Angeles County, California, operated by the Los Angeles County Metropolitan Transportation Authority.  It consists of six lines, including two rapid transit subway lines (the Red and Purple lines) and four light rail lines (the Blue, Green, Gold and Expo lines) serving 93 stations.

 

L.A.’s Metro Rail started service in 1990.  Metro Rail had two predecessors which unfortunately were discontinued for reasons unrelated to ridership success.  The prior rail services were the the famed Pacific Electric Railway Company a/k/a the Red Cars and the Los Angeles Railway Yellow Car lines, which operated between the late 19th century and the 1960’s.  The Red Cars was a privately owned mass transit system in Southern California consisting of electrically powered streetcars, interurban cars, and buses and was the largest electric railway system in the world in the 1920s.   There are still vestiges of the old Red Car system in Los Angeles, visible in the lot lines and building edges that were once situated along the Red Car route alignments.

 

Local government real estate consultants

StoneCreek Partners has acted as local government consultants for real estate development, for an array of federal, state, regional and local municipalities and agencies.

StoneCreek Economic Development Consultants & Planners

Feasibility Analysis – South Tahoe Redevelopment Plan

South Tahoe Redevelopment Agency  |  A feasibility study and program implementation plan was prepared for several districts in the community of South Tahoe (California / Nevada).

 

The Project Area for the South Tahoe Redevelopment Agency (STRA) was adopted on June 28, 1988 by Ordinance NO. 746. The Project Area is located in the northeast portion of the City of South Lake Tahoe and encompasses approximately 174 acres. Major land uses include tourist facilities and commercial development. The Project Area generally runs along Highway 50 from just west of Ski Run Boulevard to the California-Nevada border.

 

Local government real estate consultants

Charrette for Retail-Entertainment District

City of Avondale  |  Big idea exploration, Ideation and initial master plan concepts for destination retail and entertainment zone. A project sponsored by the City of Avondale, Arizona.

 

Stonecreek LLC affiliate Adventure Studios was selected as a development consultant to work with the City of Avondale – a community with a key gateway location in to the rapidly – growing suburbs of western Phoenix.

A master plan for development of the 400 acre site was prepared, with a major regional shopping center, retail-entertainment facilities, and a themed entertainment district with attractions, all included in the plan.

An initial charrette was conducted to initially evaluate all potential land use opportunities for this strategic site along a major interstate highway.

 

 

 

 

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