Times are tough for redevelopment and the core business model on which redevelopment is predicated-the public-private partnership. As a result of the current economic crisis, redevelopment agencies-the public side of the equation-up and down the state are facing drastic budget reductions due to the State's "taking" of tax increment of $2.05 billion-a key funding source that would be otherwise directed to redevelopment.

The "take" is causing a ripple effect of uncertainty about the stability and availability of this critical funding source. On the private side, capital may not be readily available for complex projects in this economic downturn, which could necessitate greater equity at higher cost, making it more difficult for projects to "pencil out."

In today's economic climate, it will take creativity to align the public and private partner's interests to achieve the desired redevelopment and public benefits, while preserving the private partner's return. Savvy developers and agency personnel are finding ways to maximize value through not only exploring a variety of sources of capital, but also through structuring and managing traditional funding sources.