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Tax Increment Financing (TIF) Plans: Commercial Real Estate Development Project Structured Finance Transaction SupportFor commercial real estate development projects, Tax Increment Financing (TIF) plans provide a definitive source of equity financing for today's savvy developer even though the intent of the legislation supporting most Tax Increment Financing programs specifically forbids the use of TIF plan bond fundings to support developer equity. These are a public finance mechanism similar to the CDD Financing Plan. Now, why do you suppose it ends up working this way? Let's find out and see if we can help you. The reality of TIF plan funding programs is that no matter how they are in fact structured, their use is limited to a scope that automatically results in the TIF plan bonds being used to augment the developer's equity commitment to the project budget. This means that all TIF plans are therefore subjective in nature and that is why many end up in court battles that drag on for years at a stretch. Tax Increment Financing is intended to accomplish a very limited scope of activities, to wit:
If you look closely at each one of these uses, these uses are essentially those uses that are typically undertaken by the developer out of the developer's own funds in advance of getting a project proposal funded. Accordingly, the argument is always going to be there that the proposed new TIF district is supplanting developer equity. This means you have to create an exit strategy into the financing plan that makes sense on multiple levels in order to create a Tax Increment Financing District proposal that people can embrace, and that means it may be time to talk to Rainmaker Marketing Corporation. Why Rainmaker Marketing Corporation? Rainmaker is the consulting group that can provide you with capital funding structures and strategies that are flexible enough to get you the results you need - project funding closed and done. Rainmaker Marketing Corporation can work with you on an extraordinarily cost-efficient basis because we already know what the majority of the issues and pitfalls are going to be, so you don't have to experience them for yourselves. Find out more about why you should be looking at a TIF, a CDD, or even abandoning these strategies in lieu of something more attractive and efficient. Start things off with a free initial consultation by contacting Rainmaker Marketing Corporation today. About Rainmaker Marketing Corporation... Rainmaker Marketing Corporation is a consulting firm that focuses on providing the due diligence services on a business to business (B2B) basis. Rainmaker Marketing Corporation can trace its roots back to the late '80's and was formally incorporated in 1994. Over the years, Rainmaker Marketing Corporation consultants have completed hundreds of assignments across the United States (45 states), Mexico, Canada and the Caribbean Basin. RMC's new construction project due diligence documentation services have led to the successful development of income-producing properties valued (in the aggregate) in the billions of dollars. Take a few minutes and learn more about RMC. This website is designed to provide a wealth of planning information pertaining to the capitalization, operations, and organizational program tenets today's savvy entrepreneurial company must embrace for continued growth and success... |
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