Nebraska’s governing body members vote on two critical TIF decisions: the substandard and blighted declaration and the redevelopment plan approval. Here are common pitfalls to watch for before casting those votes.
Pitfall 1: Voting Without Understanding the Blight Findings
The substandard and blighted declaration is the legal foundation for TIF in Nebraska. Before voting, review the blight study and understand which statutory factors are present. If the study’s findings are marginal, the declaration may be vulnerable to challenge — and without it, the TIF cannot proceed. Ask questions and ensure the study genuinely supports the declaration.
Pitfall 2: Confusing TIF With a Tax Diversion From Schools
The most common misconception: TIF takes money from schools and services. In Nebraska, the base value of property taxes continues flowing to every taxing body as usual. Only the excess value — revenue generated by the new development that would not exist without the project — is captured for the TIF period. Interest and penalties on delinquent taxes go to the taxing bodies, not the TIF fund. When the TIF period ends, all revenue flows permanently to every jurisdiction at the new, higher assessed value.
Pitfall 3: Not Reviewing the Cost-Benefit Analysis
Nebraska requires a cost-benefit analysis evaluating tax shifts, infrastructure impacts, employment effects, and whether the project is in the community’s long-term interest. This is your primary analytical tool — if it does not convincingly demonstrate the but-for case, that is a red flag regardless of how attractive the project appears.
Pitfall 4: Not Holding the CRA Accountable for the 30-Day Notice
The CRA must give the governing body 30 days’ written notice before accepting a redevelopment contract. This is your window to review the deal terms. If the CRA attempts to bypass this requirement, insist on compliance — it is your statutory right and exists to protect the public interest.
Pitfall 5: No Ongoing Oversight
After approval, ensure the CRA monitors construction progress, increment performance, and contract compliance. Your oversight role continues beyond the vote.
Hageman Capital provides free TIF education to Nebraska governing body members. Request a meeting with Whitney Peterson for clarity before your next TIF vote.
When a TIF redevelopment plan comes before your Nebraska governing body, the structuring details determine whether the deal delivers real community value while protecting public funds. Understanding how TIF Bonds are structured for capital provider purchase helps you evaluate the deal in front of you.
How Developer-Backed TIF Bond Sales Work in Nebraska
The CRA issues a bond to the developer, who sells it to Hageman Capital for upfront construction cash. The bond is repaid from ad valorem increment over 15 years (or 20 for extremely blighted areas). The developer’s redevelopment contract guarantees any shortfall. Under proposed LB 1168, conduit revenue bonds would not be CRA general obligations, and taxpayer agreements would create enforceable super-priority liens. Under current law, the redevelopment contract is the primary vehicle for developer guarantees.
What to Look for Before Your Vote
Focus on several elements: Is the blight study thorough and does it genuinely support the declaration? Does the cost-benefit analysis demonstrate the but-for case convincingly? Does the projected increment cover debt service with a reasonable cushion? Does the redevelopment contract include strong developer guarantees, construction milestones, and default remedies? Has the CRA provided the required 30-day notice? Has a capital provider been identified, confirming the bond is purchasable? You do not need to evaluate the modeling yourself, but confirm that qualified professionals are satisfied.
Why the Capital Provider Matters
When Hageman Capital is willing to purchase the bond, it means an independent third party has validated the financial soundness of the deal. That should give you additional confidence in the structure. The result everyone wants: the developer gets upfront capital, the project gets built, and the community’s tax base grows — with the CRA and city holding no general fund exposure.
Hageman Capital provides free educational support to Nebraska governing body members. Connect with Whitney Peterson for a no-obligation conversation before your next vote.
When a TIF Bond resolution comes before your Tennessee city council, the structuring details matter — not just for the project’s success, but for whether the deal delivers real value to your community while protecting public funds. Understanding how TIF Bonds are structured for capital provider purchase helps you evaluate whether the deal in front of you is sound. Here is what council members should know.
How Developer-Backed TIF Bond Sales Work
In a developer-backed TIF transaction, the TIF agency issues a bond to the developer. The developer then sells that bond to a capital provider like Hageman Capital in exchange for upfront cash to fund construction. The bond is repaid over time from the tax increment generated by the completed project. The developer’s taxpayer agreement under SB 1760 guarantees any shortfall — meaning the municipality has no financial obligation beyond serving as the conduit issuer.
For this to work, the bond must be structured in a way that a capital provider will purchase it. That means the projected increment must be sufficient, the taxpayer agreement must be enforceable, and the developer must have the financial capacity to honor the guarantee. When these conditions are met, the deal has a clear path to closing — and your community gets a completed project.
What to Look for in the Deal Structure
As a council member reviewing a TIF resolution, focus on several key structural elements. Does the projected increment cover the debt service with a reasonable cushion? Has the developer signed a taxpayer agreement with clear shortfall guarantee terms? Is the taxpayer agreement lien recorded and enforceable as property taxes? Are there construction milestones and default remedies in the redevelopment agreement? Has a capital provider been identified, confirming the bond is purchasable?
You do not need to evaluate the financial modeling yourself — that is the job of your municipality’s financial advisors. But you should confirm that a thorough feasibility analysis has been completed and that the professionals advising the deal are satisfied with the structure.
Why the Capital Provider Matters
The involvement of a capital provider like Hageman Capital is a positive signal about the deal’s quality. A capital provider that purchases TIF Bonds for a living has underwritten hundreds of these transactions and evaluates the same risk factors your financial advisors do — projected increment, developer capacity, legal enforceability, and market conditions. When a capital provider is willing to purchase the bond, it means an independent third party has validated the deal’s financial soundness. That should give you additional confidence in the structure.
Your Role: Verify, Then Vote With Confidence
Council members are not expected to be TIF structuring experts. Your role is to verify that the process has been followed, the analysis is sound, the protections are in place, and the project serves the community’s interests. When the deal is structured for a capital provider to purchase the bond, the developer gets upfront capital, the project gets built, and the city holds zero debt. That is the outcome every council member should be looking for.
As a Nebraska governing body member, you vote on substandard and blighted declarations and redevelopment plan approvals — decisions that shape your community’s development trajectory. Here is a high-level overview of how TIF works under the Community Development Law and what proposed changes under LB 1168 would mean.
TIF in Plain Language
TIF captures only the increase in real property taxes generated by new development. The base value of taxes continues flowing to all taxing bodies — city, county, school district, community college, and others. No existing revenue is redirected. Any interest and penalties on delinquent taxes go to the taxing bodies, not the TIF fund. The excess value is set aside for 15 years (or 20 for extremely blighted areas) to pay eligible redevelopment costs. When the period ends, all revenue flows permanently to every jurisdiction.
What LB 1168 Would Change
Proposed conduit revenue bonds would not be CRA general obligations — payable solely from pledged project revenues. Taxpayer agreements would create enforceable developer shortfall guarantees with super-priority lien security. This means the CRA’s broader assets would be insulated from project-specific risk, and the developer would contractually bear the performance risk.
What You Are Voting On
You vote on the substandard and blighted declaration (after a blight study, planning commission review, and public hearing) and the redevelopment plan approval. The cost-benefit analysis must demonstrate the project is in the community’s best interest and would not proceed without TIF. The CRA must give 30 days’ written notice before accepting a redevelopment contract. Public notice requirements include published notice and mailed notice to affected neighborhood associations and political subdivisions. These safeguards ensure transparency throughout the process.
As a city council member in Tennessee, you may soon be asked to vote on a TIF-supported development project — and that vote will carry weight with your constituents, your fellow council members, and the local media. Tennessee’s new TIF legislation (SB 1760 / HB 1892) has introduced developer-backed TIF Bonds with protections that make the structure far more favorable for municipalities than traditional approaches. Here is a high-level overview to help you prepare.
TIF in Plain Language
Tax Increment Financing does not spend public money, create new taxes, or raise existing tax rates. It captures only the increase in property taxes that a new development project generates — revenue that would not exist without the project. The base amount of property taxes your city was collecting before the development continues flowing to all taxing jurisdictions as usual. Only the new growth, the increment, is set aside for a limited period (up to 20 or 30 years depending on the TIF agency) to help pay for eligible project costs.
When the TIF period ends, all revenue — including the increment — flows permanently to the city, county, schools, and other taxing bodies. The net result is a larger tax base generating more revenue than your community had before the project was built.
What SB 1760 Means for Risk
The new legislation authorizes taxpayer agreements — binding contracts where the developer guarantees bond repayment. If the increment falls short, the developer covers the difference. The lien created by this agreement carries the same priority as property tax liens and takes precedence over any mortgage on the property. The municipality issues the bond as a conduit — with no obligation to advance funds from the general fund. No public debt is created. No municipal credit is pledged.
What You Are Actually Voting On
When a TIF resolution comes before your council, you are voting to approve either an economic impact plan (for IDB projects) or a redevelopment plan (for Housing Authority projects). Tennessee law allows this approval by resolution at a single reading. Before that vote, you should have access to the TIF plan document identifying the project boundaries, projected increment, proposed allocation period, eligible costs, and estimated impact on all affected taxing agencies. The developer’s taxpayer agreement and redevelopment agreement terms should also be part of the record.
Your job is to evaluate whether the project genuinely benefits your community, whether the safeguards protect the public interest, and whether you can explain your vote clearly to constituents who ask. Developer-backed TIF Bonds make that explanation straightforward: the developer pays, the community benefits, and the city holds no debt.
Free Educational Support
Hageman Capital provides free TIF education to Tennessee council members. Whether you want a walkthrough of the legislation, help preparing constituent talking points, or simply want to ask questions before your next vote, our team is available. Connect with Whitney Peterson, our Director – Government Relations, for a no-obligation conversation.
Voting on a TIF resolution is one of the most consequential economic development decisions a Tennessee city council member will face. Developer-backed TIF Bonds under SB 1760 offer strong protections for your municipality, but there are common missteps that council members should be aware of before casting that vote. Hageman Capital works with municipal leaders across the state, and here are the pitfalls we encourage council members to watch for.
Pitfall 1: Voting Without Fully Understanding the Structure
TIF is a complex financial tool, and there is no shame in needing more information before you vote. The pitfall is voting yes — or no — without understanding what you are actually approving. Before the vote, make sure you understand how the increment is calculated, what the taxpayer agreement guarantees, how long the allocation period lasts, and what happens if the project underperforms. If you do not understand something, ask. It is far better to request a briefing than to vote on incomplete information.
Pitfall 2: Confusing TIF With a Tax Giveaway
The most common public misconception about TIF is that it gives away taxpayer money to developers. If you share this misconception, you will either vote against a beneficial project or be unable to defend your yes vote to constituents. TIF does not redirect existing tax revenue. It captures only the new increment — revenue that would not exist without the project. The base amount continues flowing to all taxing jurisdictions. Under developer-backed structures, the municipality carries zero credit risk. Being able to articulate this clearly is essential to your role.
Pitfall 3: Not Reviewing the Taxpayer Agreement Terms
SB 1760 authorizes taxpayer agreements, but the strength of those agreements depends on the specific terms negotiated. As a council member, you should review (or have your financial advisor review) the shortfall guarantee provisions, the lien terms, the enforcement mechanisms, and the developer’s financial capacity to honor the guarantee. A taxpayer agreement that looks good on paper but lacks enforcement teeth does not protect your community.
Pitfall 4: Ignoring Constituent Communication Until It Is Too Late
Public hearings are a statutory requirement, but they should not be the first time your constituents hear about a TIF project. Proactive communication — explaining what TIF is, how it works, and why the specific project benefits the community — builds public support before opposition has a chance to form around misconceptions. Prepare talking points before the hearing, not after.
Pitfall 5: Assuming Someone Else Will Do the Oversight
Once a TIF plan is approved, your oversight role does not end. Annual reporting, construction milestone tracking, and compliance with the redevelopment agreement are ongoing responsibilities. Make sure the TIF agency has systems in place for monitoring and that the governing body receives regular updates on project status and increment performance.
Get the Clarity You Need
Hageman Capital provides free TIF education to Tennessee council members. Our goal is to make sure you have the understanding and confidence to cast an informed vote — and to explain that vote to the people who elected you. Request a meeting with Whitney Peterson, our Director – Government Relations, and get your questions answered before the next resolution hits the agenda.
Kansas requires a two-thirds supermajority to approve a TIF project plan — reflecting the significance of the decision. Before casting that vote, here are the common pitfalls council members should watch for.
Pitfall 1: Voting Without Understanding the Structure
TIF is complex, and the Taxpayer Agreement Act adds new instruments. Before voting, make sure you understand how the increment is calculated, what the taxpayer agreement guarantees, how the conduit bond structure insulates the city, and what the feasibility study demonstrates. Ask for a briefing if the materials are unclear.
Pitfall 2: Believing TIF Hurts Schools
In Kansas, the 20 mills for school districts and 1.5 mills for the state are explicitly protected from TIF capture. Base year taxes continue flowing to all jurisdictions. TIF captures only the new increment — revenue that would not exist without the project. If a constituent claims TIF takes money from schools, this is the fact that corrects the misconception.
Pitfall 3: Not Reviewing the Feasibility Study
The feasibility study is your primary analytical tool. It must demonstrate the project would not proceed without TIF, project the increment, estimate costs, and include a cost-benefit analysis. If the study is weak or the but-for case is unconvincing, that is a red flag — regardless of how attractive the project appears.
Pitfall 4: Ignoring Constituent Communication
Public hearings are required before both the redevelopment district and project plan votes. Use these as opportunities to educate, not just comply. Prepare talking points that address the most common concerns: no new taxes, school funding protected, developer bears the risk, city carries no debt.
Pitfall 5: No Ongoing Oversight
After approval, ensure the city monitors construction progress, increment performance, and compliance with the redevelopment agreement. Your oversight role continues after the vote.
When a TIF Bond resolution comes before your Kansas city council, the structuring details determine whether the deal delivers real value while protecting public funds. Understanding how TIF Bonds are structured for capital provider purchase helps you evaluate the deal in front of you.
How Developer-Backed TIF Bond Sales Work in Kansas
The city issues a special obligation bond to the developer, who sells it to Hageman Capital for upfront construction cash. The bond is repaid from ad valorem increment, sales tax, and franchise fees. The developer’s taxpayer agreement under HB 2737 guarantees any shortfall — enforceable as delinquent real estate taxes. The city issues the bond as a conduit with no obligation to advance funds. No public debt is created.
What to Look for Before Your Vote
Focus on several elements: Does the feasibility study demonstrate a genuine but-for case? Does the projected multi-stream revenue cover debt service with a reasonable cushion? Has the developer signed a taxpayer agreement with clear guarantee terms? Has written mortgage holder consent been obtained? Has a capital provider been identified? Is the project plan consistent with the city’s comprehensive plan, as confirmed by the planning commission? You do not need to evaluate the modeling yourself, but you should confirm that qualified professionals are satisfied with the structure.
Why the Capital Provider’s Involvement Matters
When Hageman Capital is willing to purchase the bond, it means an independent third party has validated the deal’s soundness. That should give you additional confidence. The two-thirds supermajority threshold exists because TIF decisions are significant — the involvement of experienced capital providers helps ensure that significance is matched by quality structuring.
Hageman Capital provides free educational support to Kansas council members. Connect with Whitney Peterson for a no-obligation conversation before your next vote.
As a Kansas city council member, you may soon face a TIF vote requiring a two-thirds supermajority — the highest threshold for any incentive approval in your jurisdiction. Kansas’s Taxpayer Agreement Act (HB 2737) has introduced protections that make developer-backed TIF Bonds far more favorable for municipalities. Here is a high-level overview.
TIF in Plain Language
TIF captures only the increase in property taxes generated by new development. No existing revenue is redirected — the base year taxes continue flowing to all taxing jurisdictions. The 20 mills for school districts and 1.5 mills for the state are fully protected from TIF capture. Only the new growth is set aside for up to 20 years to fund eligible public infrastructure costs like streets, utilities, demolition, and site preparation. When the TIF period ends, all revenue flows permanently to the taxing jurisdictions.
What HB 2737 Means for Risk
The Taxpayer Agreement Act ensures the developer — not your city — guarantees bond repayment. Delinquent payments are enforceable as delinquent real estate taxes. Conduit bonds issued under the Act carry no city obligation to advance funds. No public debt is created, no municipal credit is pledged, and the feasibility study required before any TIF approval must demonstrate the project would not proceed without TIF assistance.
What You Are Voting On
Kansas requires a two-thirds supermajority to adopt a redevelopment project plan. Before that vote, you will review the feasibility study, attend a public hearing, and evaluate whether the project area qualifies as an eligible area. The project plan must include estimated costs, projected increment, and the financing structure. Your job is to verify the analysis is sound and the protections are in place.
As a City Council Member in Mississippi, you’ll soon face a vote that carries real weight — approving a developer-backed TIF Bond under the state’s new legislation, Senate Bill 2846. TIF is a powerful tool for community growth, but only when the details are right. The good news is you don’t need a finance degree to cast an informed vote. You need the right questions, the right framework, and access to good information. Hageman Capital works with municipal leaders across the country as a free educational resource on TIF Bond structuring — helping bridge the gap between what developers need and what your community deserves. Based on what we’ve seen across multiple states and TIF transactions, here are some of the most common areas where council members may want to pay close attention.
Pitfall #1 — Confusing Developer-Backed TIF Bonds With Municipal Debt
One of the most common misconceptions we encounter is the assumption that approving a TIF Bond means the city is taking on debt. Under SB 2846, that’s not the case. Developer-backed TIF Bonds are repaid solely from the incremental property tax revenue generated by the specific development project — not from the city’s general fund, and not from existing tax revenue. The developer, not the municipality, carries the financial obligation. The law is explicit: these bonds do not constitute public debt, do not count against statutory or constitutional debt limits, and do not pledge your city’s credit or taxing power. If a constituent asks whether you just voted to put the city on the hook for a private project, the answer is a clear and defensible no. Hageman Capital is happy to share educational materials that explain this distinction in plain language — resources your team can use however is most helpful.
Pitfall #2 — Voting Without Understanding What Happens if the Project Underperforms
One of the most important questions a council member can ask is: what happens if the development doesn’t generate enough tax increment to cover the bond payments? Under Mississippi’s previous TIF framework, that question was harder to answer. SB 2846 changes the equation by authorizing voluntary taxpayer agreements — contractual obligations that require the developer to make up the shortfall if the increment falls short. These agreements can also be secured by a lien on the developer’s real property, with the same enforcement priority as ad valorem tax liens. In plain terms, the developer has skin in the game at every stage. If you’d like to understand how these taxpayer agreements are typically structured and what protections they offer, Hageman Capital is available to walk through the details as a supplemental resource for your team’s own evaluation.
Pitfall #3 — Assuming TIF Diverts Revenue From Schools and Other Taxing Bodies
This concern comes up in nearly every council chamber, and it’s understandable. Constituents want to know: is this TIF going to take money away from our schools? The answer, when a TIF Bond is structured correctly, is no. TIF captures only the increment — the new tax revenue that would not exist without the development project. The original assessed value, and every dollar of tax revenue it generates, continues flowing to every taxing jurisdiction exactly as it does today. Schools, the county, utilities — none of them lose a single dollar of their current funding. They gain a dollar of new funding once the TIF period ends and the full assessed value flows back to all jurisdictions. This is one of the areas where having a clear, jargon-free explanation ready can make a meaningful difference in constituent conversations, and Hageman Capital has resources available that may be helpful as you and your colleagues prepare for those discussions.
Pitfall #4 — Not Asking the Right Questions During the Public Hearing
Mississippi law requires a public hearing before any TIF plan is approved. This is your opportunity — and your responsibility — to ask questions on the record. But it can be difficult to know where to start if you haven’t worked with TIF before. Based on our experience, here are some of the questions that tend to surface the most important information: Does this project genuinely need TIF to be viable? What are the projected increment revenues, and are they based on conservative assumptions? What safeguards exist if the project timeline slips? Is the dedication requirement being waived, and if so, has the governing body made the required best-interest finding? What is the maximum term and total cost to the increment fund? These aren’t gotcha questions — they’re the kinds of questions that demonstrate diligence, build public trust, and help ensure an informed vote. Hageman Capital is happy to share additional context on any of these topics if it would be useful to your preparation.
Pitfall #5 — Not Knowing Where to Turn for TIF-Specific Guidance
TIF Bond structuring sits at the intersection of municipal law, real estate development, and public finance — three areas that rarely overlap in a council member’s day-to-day responsibilities. Your municipality’s own legal counsel, financial advisors, and internal staff are the right people to guide your decision-making. Hageman Capital’s role is simply to supplement that expertise with TIF-specific knowledge. We’ve worked with developer-backed TIF Bond structures across multiple states and are happy to share what we’ve learned — whether that’s background on how SB 2846 works, insight into how similar projects have been structured elsewhere, or just a sounding board as your team evaluates a proposal. We’re not here to replace anyone on your team; we’re here to make sure TIF-specific expertise is available to you at no cost.
Start the Conversation
If you’re a Mississippi City Council Member preparing for a TIF vote — or simply want to understand how developer-backed TIF Bonds work before one hits your agenda — Hageman Capital is here as a resource. Whitney Peterson, our Director – Government Relations, works directly with municipal leaders to answer questions, share educational materials, and walk through the specifics of how TIF works in your state. There’s no cost and no obligation. Request a meeting with Whitney here and take the first step toward voting with confidence.
