A regional center is no more than a defined geographical area in the U.S within which a sponsor seeks to promote economic growth through increased export sales, improved regional productivity, the creation of new jobs, and increased domestic capital investment.
In developing and operating a designated regional center, the regional center seeks to exploit a specific use for its benefit and those of foreign investors.
In doing so, the regional center ascertains the target market and demographic to which the regional center will deliver its services. The following is a sample of the uses that a regional center may chose in modeling its projects:
- Film & TV Production
- International Traffic & Cargo
- Commercial Office Space
- Higher Education
- Airport & Seaport Operations
- Mixed Hotel, Office, Retail &
- Residential space
- Light & Heavy manufacturing
- Renovation of obsolete buildings Historical sites &
- similar Institutions Construction and renovation
- Gaming & Casino sector
- Apartments & Condominiums Banking/ Lending
- Mining and exploration
- Health Services
- Manufacturing & Research
- Hotel, Leisure Resort
- Trade Schools/ Culinary Schools Technology and
- technology transfers Transportation
- Conference Centers & Exhibition space
- Cruise Line support
- Performing Arts
- Mixed use : Real Estate
- Harbor facilities
- Marine Sector
- Air Cargo
- Warehouse Distribution
Regional centers are presumed to require a $1 million investment per investor family, unless the project is situated in a Targeted Employment Area („TEA‟).
This „TEA‟ can be located either in a rural area where the population is determined to be 20,000 or less, or, where the unemployment of the defined area is no less than 150% of the national average. For example, there are many resort projects which are located in mountain areas, where the local population did not exceed 20,000 in the last census count.
Other projects may be situated in areas which are in need of rejuvenation and where the unemployment levels are high.
Under either scenario, the Congressional intent is to provide and encourage the much needed economic activity and development to these often remote or blighted areas.
Sponsors of regional centers undertake a great deal of responsibilities to develop, manage, and complete the project.
Their duties and obligations are incorporated in the parameters of documents known as the Private Placement Memorandum, Subscription Agreements, and Operating Agreements.
These documents govern the conduct of the sponsor and the investor and must be strictly respected and abided by all policies.
No document can be signed within the U.S. as the program is strictly designed for foreign nationals.