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TIF
Plans: Construction Phase Commercial Real Estate Project Funding
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Creating a TIF Plan is
subject to some considerations you need to know about before you proceed
full-steam ahead. The considerations you need to understand
include:
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Litigation.
The filing of a TIF plan frequently attract litigation and it can be
a very long process. This impacts budget planning as a
significantly higher amount of project carrying costs must be
reconciled by the developer or owner/operator (as the case may be).
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Funds
Availability. Availability of funds from a TIF Plan are also a
financing consideration. The prototypical TIF plan provides
funds upon completion of construction to insulate the bond holders
from construction risk. This means you need to get a
construction loan or bridge loan to provide for construction phase
expenditures. Pre-construction phase project financing is not
typically possible using the TIF Plan approach. You have to
budget the direct, indirect and carrying costs of the project.
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Entitlements.
TIF Plans may be used in tandem with other local, state and/or
federal incentives to provide a higher level of financial investment
leverage. This means that you need to have an entitlements
review completed to see if NMTCs, Brownfields, Historical and other
tax credits and/or tax-advantaged investment incentives can be
brought to bear for your benefit. (we hope you will retain RMC
for this review)
To find
out more, please call a Rainmaker consultant and expect answers to your
questions. The first call is always free.
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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... |
