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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 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.

Call: 281.537.1200


What's New?

Tired of construction loan rejection letters?  Rainmaker has come up with a whole new way of funding construction that eliminates the developer's reliance upon construction mortgage financing, while creating financial investment leverage greater than 10:1!

All of the information is in our latest white paper.  Click here and download a copy and be prepared to be floored!

Email: consultants@rainmakermarketing.com.  Address: 15519 Dawnbrook Drive, Houston, Texas 77068.  281.537.1200. Open M-F 9 to 5 (CST).

 

About Rainmaker Marketing Corporation...

Rainmaker Marketing Corporation, Inc. is a B2B consulting firm built from the ground up by Clint Lovell on the premise of providing market feasibility studies (hence the name Rainmaker Marketing) to the senior housing development industry for projects seeking FHA/HUD-insured financing.  Rainmaker started business in 1993, though its roots extend back to 1988.  In the intervening years, the depth of services has been enhanced to provide a complete continuum of due diligence documents and consulting services.

Today, Rainmaker has completed literally hundreds upon hundreds of consulting assignments on projects in the housing, health care, retail, commercial office and hospitality industries throughout North America - including projects in 45 of the 50 states, Canada, Mexico and the Caribbean Basin.  The resulting reports and consulting services provided by Rainmaker have resulted in billions of dollars in new development.  Our clients have included publicly-traded companies, privately-held companies, government bodies and not-for-profit organizations.  

When Should You Be Talking To Rainmaker?

If you will be seeking construction financing from a third-party lender (or investor) with whom you do not already enjoy a previous underwriting relationship, then you need to be talking to Rainmaker.  If you have insufficient equity or assets necessary to sustain a construction mortgage financing for a new construction project, then you need to be talking to Rainmaker about the alternatives.  If you have doubts, Rainmaker is the firm to turn to when it's time to deal with them.

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