	RAINMAKER MARKETING CORPORATION 281.537.1200

TIF Plans: Tax Incremental Financing Programs - New Construction Financing...

The term "TIF Plan" stands for Tax Incremental Financing Plan. TIF plan, tax incremental financing, construction, retail, mixed-use, high-yield The classic use of the Tax Incremental Financing Plan approach to commercial real estate development financing for the construction phase capital expenditures. The Tax Incremental Financing Plan works on the basis of a given county or municipality utilizing a portion of the future property tax income stream as collateral to support the funding of a commercial real estate development project. The most common use of the Tax Incremental Financing Plan (TIF Plan) is to develop new retail projects (neighborhood shopping centers all the way up to regional power centers) because:

The shopping center's tenants will create jobs and jobs are important enough to subsidize in the eyes of regulators; and

The sales of goods and services by the shopping center tenants creates an additional stream of tax revenues the governing authority (municipality and/or county) would not otherwise enjoy; and

The plan is based upon the difference between the current real property tax stream and the new real property tax stream the resulting development will create on a direct basis (i.e.: new construction) and an indirect basis (i.e.: surrounding property value increases created by the project). When the financing is paid off, the resulting taxing district will then be remitting all of the tax receipts back to the government as if the plan had never been in effect; and

So, what does it mean to you - the developer and/or owner/operator?

You can finance a host of project types (not just shopping centers) with the TIF Plan funding method.

This method provides take-out financing for construction. You must obtain a construction loan and provide the sums necessary to defray your pre-construction capital expenses.

This method is limited by the amount of new property tax receipts the resulting district will generate for the purposes of providing debt service of the resulting bond float.

If you have questions regarding the use and/or advisability of funding your commercial real estate project with this approach, please contact RMC.

Do You Know The Secret?

When it comes to commercial real estate development finance, it doesn't matter whether you need to raise $5 million or $50 million, the out-of-pocket costs, advance fees and project due diligence costs will always require the same relative investment dollars the promoters have to fund. Do you know what that amount is? Do you know the Secret?

Rainmaker Marketing Corporation can trace its history back all the way to 1989. Incorporated in 1993, Rainmaker Marketing Corporation has evolved over time into a full-service business to business consulting firm. Rainmaker Marketing Corporation’s initial specialization was in issues and documentation needs corresponding to the capital funding cycle for commercial real estate development projects with a primary focus on senior housing and health care related properties. Today, Rainmaker Marketing Corporation serves all types of commercial income-producing property development program financing requests with a combination of feasibility studies, due diligence services, structured finance consulting and a focus on commercial real estate syndication services. Rainmaker Marketing Corporation’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: consultants@rainmakermarketing.com

Commercial Real Estate Development Finance, Due Diligence Documentation, Syndication & Project Management Consulting

15519 Dawnbrook Drive, Houston, Texas 77068.