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Developer Contributions

Developer contributions are another avenue for authorities to explore to reduce project costs. Often, owners of large tracts of land are interested in selling the land for development purposes. Because the availability of municipal water and sewer service on that land enhances its value and makes it more attractive to a buyer, property owners may be willing to provide a significant contribution to the project. They may also be willing to provide a long-term, low-interest (or even no-interest) rate loan to help advance a project that would benefit their property. This method of financing has been used successfully on several occasions involving relatively small contributions to hundreds of thousands of dollars.

This article was written by Russ McIntosh, director of HRG's financial services group. It was originally published in the April 1997 edition of The Authority magazine. For more information on the financial decisions that face municipal authorities, contact Russ McIntosh . For more information aboutwater/wastewater engineering, please contact Chuck Wunz .

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