"TIF" - Tax Increment Financing Plans For Commercial Real Estate New Construction Projects...

For 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.

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 RMC today.

Rainmaker Marketing Corporation is a B2B consulting firm that was incorporated in 1994 for the purposes of providing market feasibility studies to businesses seeking capital financing in the commercial and institutional markets.  Today, Rainmaker Marketing Corporation provides a comprehensive array of due diligence documentation services for most major industry groups.  Rainmaker Marketing Corporation also provides syndication management services for fractional commercial real estate syndicates that can provide mezzanine gap funding for income-producing commercial property developments as early as the pre-construction phase.  Rainmaker Marketing Corporation serves clients throughout North America and the Caribbean Basin.

Rainmaker Marketing Corporation, Inc.

15519 Dawnbrook Drive, Houston, Texas 77068

281.537.1200  consultants@rainmakermarketing.com