RAINMAKER MARKETING CORPORATION 281.537.1200

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"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 TIF, tax increment financing plans, retail, district, entitlement, mixed-use, construction loans, non-recourse 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:

Assembling land parcels for development.

Developing infrastructure to support development.

Providing pre-construction phase planning to support development.

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.

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.

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