For Nebraska mayors championing TIF-supported development, the ultimate goal is a completed project that grows the tax base while protecting the CRA and the city. Whether the TIF Bond is structured so a capital provider like Hageman Capital can purchase it determines whether the developer gets upfront capital and the project moves forward efficiently.
What Makes a Nebraska TIF Bond Purchasable
Hageman Capital purchases developer-backed TIF Bonds that are issued by the CRA to the developer, backed by a strong redevelopment contract with developer guarantees, and supported by conservative ad valorem increment projections showing adequate debt service coverage. The developer must have the financial capacity to support the guarantee, and the blight declaration, redevelopment plan, and cost-benefit analysis must all be complete and legally sound. Under proposed LB 1168, conduit revenue bonds with taxpayer agreements would provide even stronger statutory authority for this structure.
Your Role in Getting It Right
You will not draft bond documents — your CRA, financial advisors, and bond counsel handle the technical work. Your role is to ensure the CRA is active and prepared, the blight study is thorough, the governing body approves the plan after a genuine cost-benefit analysis, and the July 1 filing deadline is met. When Hageman Capital is identified early as the capital provider, it gives the developer certainty and the governing body confidence that the deal has been vetted by professionals.
The Outcome
When structured correctly: the developer sells the bond to Hageman Capital and receives upfront cash, the CRA’s broader obligations are protected, the project gets built, and the tax base grows. When the 15-to-20-year TIF period ends, all revenue flows permanently to every taxing body at the new, higher assessed value.
Hageman Capital helps Nebraska mayors ensure their TIF projects achieve this outcome — at no cost. Connect with Whitney Peterson to get the structure right.
For Tennessee mayors championing TIF-supported development, the ultimate goal is a completed project that grows the tax base without exposing your city to financial risk. Achieving that goal depends on how the TIF Bond is structured — and specifically, whether it is structured in a way that allows a capital provider like Hageman Capital to purchase it from the developer. Here is what that structuring process looks like and what it means for your role.
What Makes a TIF Bond Purchasable
Hageman Capital purchases developer-backed TIF Bonds — but not every TIF Bond meets the criteria for purchase. The bonds that work are structured as private placements issued by the TIF agency directly to the developer, non-recourse to the municipality, secured by the tax increment revenue and a taxpayer agreement under SB 1760. The projected increment must be sufficient to support the debt service with a reasonable coverage cushion, and the developer must have the financial capacity to honor the taxpayer agreement guarantee.
For mayors, this means the structuring decisions made during the redevelopment agreement negotiation directly affect whether the developer can monetize the bond and receive upfront capital. A well-structured deal attracts capital. A poorly structured deal leaves the developer without a buyer — and the project without a clear financing path.
The Taxpayer Agreement Is the Key
SB 1760’s taxpayer agreement creates the enforceable security that capital providers require. The developer’s contractual guarantee of any shortfall between actual increment and required debt service, backed by a first-priority lien on the property, is what transforms a TIF Bond from a speculative revenue instrument into a purchasable asset. Without a strong taxpayer agreement, the bond carries too much uncertainty for a capital provider to price it favorably. With one, the developer receives competitive proceeds at closing.
How the Process Works From the Mayor’s Perspective
As mayor, you will not be drafting the bond documents or negotiating coverage ratios — that is the work of your economic development team, financial advisors, and bond counsel. Your role is to ensure the deal gets structured properly by engaging the right professionals, supporting a thorough feasibility analysis, and guiding the governing body through the approval process. When Hageman Capital is identified as the capital provider early in the process, it gives the developer certainty, the lender confidence, and the governing body assurance that the deal has been vetted by professionals who purchase these instruments for a living.
The Outcome Everyone Wants
When a TIF Bond is structured correctly, the developer sells it to Hageman Capital at closing and receives the upfront cash needed for construction. The municipality issues the bond as a conduit with zero credit exposure. The project gets built, generating assessed value that flows into the TIF fund and services the bond. When the allocation period ends, all tax revenue flows permanently to the taxing jurisdictions. Jobs are created, blight is eliminated, and the community’s tax base is larger than it was before.
If you are a Nebraska mayor exploring TIF for your community, this overview covers what you need to know. The Community Development Law provides a proven framework, and proposed LB 1168 would add conduit revenue bonds and taxpayer agreements that further strengthen municipal protections.
What TIF Is and What It Is Not
TIF captures the increase in real property taxes generated by new development. No new taxes are created. No existing revenue is redirected — the base value of taxes continues flowing to all taxing bodies as usual. Only the excess value, the growth that would not exist without the project, is set aside for 15 years (or 20 for extremely blighted areas) to pay eligible redevelopment costs. When the TIF period ends, all revenue flows permanently to every taxing jurisdiction.
How TIF Works in Nebraska
Nebraska TIF requires a substandard and blighted declaration, a redevelopment plan reviewed by the planning commission, public hearings, governing body approval, and a cost-benefit analysis demonstrating the but-for test. The CRA issues bonds and enters into redevelopment contracts with developers. The Notice to Divide Tax must be filed by July 1 — a critical deadline. Under proposed LB 1168, conduit revenue bonds would not be general obligations of the CRA, and taxpayer agreements would provide enforceable developer guarantees with super-priority liens.
Your Role as Mayor
You champion projects publicly, ensure the governing body has a sound cost-benefit analysis, and maintain transparency through the public hearing process. You are not expected to be a TIF structuring expert — your CRA, financial advisors, and resources like Hageman Capital handle the technical details. What you communicate to constituents is straightforward: TIF grows the tax base without spending public money or creating municipal debt.
Nebraska’s Community Development Law gives mayors a proven TIF framework — but the procedural details and unique characteristics of Nebraska TIF create specific pitfalls to watch for. Hageman Capital works with municipal leaders across the state, and here are the missteps we see most often.
Pitfall 1: Underestimating the Blight Declaration Process
Nebraska TIF requires a substandard and blighted declaration before any redevelopment plan can be adopted. The blight study must be commissioned, submitted to the planning commission for a 30-day review, followed by a public hearing with two weeks of published notice plus mailed notice to affected associations and political subdivisions. This process takes time. Mayors who assume blight can be declared quickly risk missing the July 1 Notice to Divide Tax deadline — delaying the entire project by a year.
Pitfall 2: Missing the July 1 Deadline
The Notice to Divide Tax must be filed with the county assessor on or before July 1 of the calendar year in which the tax division becomes effective. This is a hard deadline — miss it and the taxes remain undivided for the affected year. Build this deadline into your project timeline from day one and work backward to ensure all approvals are complete in time.
Pitfall 3: Poor Communication About Taxing Body Impact
Nebraska requires mailed notice to every county, school district, community college, and political subdivision affected by the TIF plan. These entities will scrutinize the proposal. Be prepared to explain that base value taxes continue flowing as usual, only the excess value is captured, and the cost-benefit analysis demonstrates the project is in the community’s long-term interest. Proactive communication builds support before opposition forms.
Pitfall 4: Not Ensuring the CRA Is Active and Prepared
Many Nebraska cities have CRAs that exist on paper but have not been actively used. If your CRA lacks current board members, operating procedures, or staff capacity, it will slow the TIF process. Ensure your CRA is active, staffed, and ready before a developer brings a project to the table.
If you are a Tennessee mayor who has heard the term “developer-backed TIF Bond” but has not yet had the chance to explore what it means for your community, this overview is for you. SB 1760, signed into law during the 2026 legislative session, introduced new tools that make Tax Increment Financing one of the most powerful and lowest-risk economic development instruments available to your city. Here is what you need to know at a high level.
What TIF Is and What It Is Not
Tax Increment Financing captures the increase in property tax revenue generated by a new development project and directs that increase toward paying for eligible project costs. It does not create new taxes. It does not raise anyone’s tax rate. The base amount of property taxes — everything your city and county were collecting before the project — continues flowing to all taxing jurisdictions as usual. Only the increment, the growth that would not exist without the development, is set aside for a limited period to support the project.
When the TIF period ends (up to 20 years for IDB projects or 30 years for Housing Authority projects), all tax revenue — including what was the increment — flows back to the taxing jurisdictions permanently. The result is a larger tax base generating more revenue for your city, schools, and county than existed before the project was built.
What Changed With SB 1760
The new legislation authorizes taxpayer agreements — binding contracts where the developer guarantees repayment of TIF bond debt. If the actual tax increment falls short of what is needed to cover the bond payment, the developer makes up the difference. The taxpayer agreement lien runs with the land, carries first-priority status over any mortgage, and is enforceable as real property taxes. This means the municipality bears zero financial risk on the bond — the developer is contractually and legally on the hook.
What This Means for Your Role as Mayor
As mayor, you are the public face of economic development in your community. Your role in TIF is to champion projects that serve the community’s interests, work with your economic development team to evaluate proposals, and ensure the governing body has the information needed to make sound decisions. You are not expected to be a TIF expert — that is what professional advisors and resources like Hageman Capital are for.
What you should be able to communicate to your council and constituents is straightforward: TIF does not spend public money, does not redirect existing tax revenue, and under the new taxpayer agreement structure, does not put the city’s credit at risk. It is a tool that turns developer investment into long-term community growth — more jobs, more tax revenue, and better infrastructure.
Getting Started
Hageman Capital provides free TIF education and structuring guidance to Tennessee mayors. Whether you have a specific project in mind or simply want to understand the landscape before a developer comes knocking, our team is available to help. Connect with Whitney Peterson, our Director – Government Relations, to schedule a no-cost consultation and start exploring what developer-backed TIF Bonds can do for your city.
Tennessee’s new developer-backed TIF Bond framework is a powerful tool — but like any complex financial instrument, the details matter. For mayors championing TIF-supported development in their communities, there are common missteps that can undermine a project’s success, erode public trust, or leave value on the table. Hageman Capital works with municipal leaders across Tennessee to help navigate these challenges, and we have seen the same patterns repeat. Here are the pitfalls worth watching for — and how to avoid them.
Pitfall 1: Approving a Project Without a Clear “But-For” Justification
Tennessee’s TIF framework requires that the project would not be economically feasible without TIF assistance. This is not a formality — it is the legal and political foundation of the entire transaction. If a project would have proceeded anyway, using TIF is giving away future tax revenue unnecessarily. Mayors should insist on a genuine feasibility analysis that demonstrates the funding gap and confirms TIF is the tool that closes it. If the developer cannot articulate why the project fails without TIF, the incentive may not be warranted.
Pitfall 2: Not Understanding the Difference Between Housing Authority and IDB Structures
Choosing the wrong TIF agency can limit your project’s flexibility or introduce unnecessary approval requirements. Housing Authorities offer 30-year allocation periods and broader eligible cost authority for blighted areas, but require a blight determination. IDBs offer 20-year periods and do not require blight, but need state approval for private property improvements. A mayor who does not understand this distinction may inadvertently delay a project or miss out on a more favorable structure. Working with experienced TIF advisors early in the process prevents this.
Pitfall 3: Failing to Negotiate Strong Taxpayer Agreement Terms
SB 1760 authorizes taxpayer agreements, but the legislation does not dictate every term — many details are negotiated in the redevelopment agreement. Mayors should ensure the taxpayer agreement includes clear shortfall guarantee provisions, enforceable performance milestones, financial reporting requirements, and meaningful remedies for default. A weak taxpayer agreement undermines the protections the legislation was designed to provide.
Pitfall 4: Poor Public Communication
TIF is often misunderstood by the public. Constituents may believe TIF diverts existing tax revenue from schools and services, or that it amounts to a handout to developers. Neither is accurate, but if you cannot explain TIF clearly at a town hall, you will face opposition based on misconceptions rather than facts. The key messages are simple: TIF does not create new taxes, does not redirect existing revenue, and under the developer-backed structure, the city carries zero financial risk. Preparing clear talking points before the public hearing is essential.
Pitfall 5: Going It Alone Without Expert Support
Tennessee’s TIF legislation is new, and the taxpayer agreement framework adds legal and financial complexity that most municipal staff have not encountered before. Mayors who try to navigate the process without experienced partners risk structural errors, missed deadlines, or terms that do not adequately protect the municipality. This does not mean you need to hire expensive consultants — Hageman Capital provides TIF structuring expertise to Tennessee mayors at no cost. We work alongside your existing financial advisors, legal counsel, and economic development staff to ensure the structure is right.
Start the Conversation
If you are evaluating a TIF opportunity or simply want to understand how the new legislation applies to your city, Hageman Capital is here to help. Our Director – Government Relations, Whitney Peterson, works directly with mayors across Tennessee to provide education, structuring guidance, and deal support at no charge. Request a meeting with Whitney Peterson and make sure your community’s next TIF project is structured right from day one.
Kansas’s Taxpayer Agreement Act gives mayors a powerful TIF framework — but the details matter. Here are the common pitfalls Hageman Capital sees Kansas mayors encounter, and how to avoid them.
Pitfall 1: Approving TIF Without a Genuine “But-For” Justification
Kansas law requires a feasibility study demonstrating the project would not proceed without TIF. This is not a formality — the feasibility study is a statutory requirement reviewed by the governing body and available to the public. If the project would have happened anyway, you are giving away future increment unnecessarily. Insist on a genuine funding gap analysis before supporting TIF for any project.
Pitfall 2: Not Understanding Eligible Area Requirements
Kansas TIF can only be used in designated eligible areas — blighted areas, conservation areas, buildings 65+ years old, and several specialized categories. If the proposed project area does not meet these criteria, the entire TIF structure fails. Verify the eligible area designation early, before significant time and resources are invested in plan development.
Pitfall 3: Overlooking the Two-Thirds Supermajority Requirement
Kansas requires a two-thirds supermajority to adopt a redevelopment project plan — a higher threshold than most incentive approvals. This means you need broader council support than a simple majority. Build consensus early by briefing council members before the public hearing and ensuring they understand the developer-backed structure, the taxpayer agreement protections, and the community benefits.
Pitfall 4: Poor Communication About School District Revenue
Constituents often worry that TIF diverts money from schools. In Kansas, the 20 mills for school districts are explicitly protected from TIF capture. Lead with this fact in every public communication. The base year taxes continue flowing to all jurisdictions, and school funding is never reduced by TIF.
Pitfall 5: Going It Alone
The Taxpayer Agreement Act is new, and its interaction with existing TIF law adds complexity. Hageman Capital provides TIF structuring expertise to Kansas mayors at no cost. Request a meeting with Whitney Peterson, our Director – Government Relations, and make sure your city’s next TIF project starts on the right foundation.
For Kansas mayors championing TIF-supported development, the ultimate goal is a completed project that grows the tax base without exposing your city to risk. Achieving that depends on whether the TIF Bond is structured so a capital provider like Hageman Capital can purchase it from the developer. Here is what that means for your role.
What Makes a Kansas TIF Bond Purchasable
Hageman Capital purchases special obligation TIF Bonds structured as private placements, non-recourse to the city, secured by pledged increment and a taxpayer agreement under HB 2737. The projected revenue (ad valorem, sales tax, and franchise fees) must demonstrate sufficient coverage over debt service. The developer must have financial capacity to honor the taxpayer agreement guarantee, and written mortgage holder consent must be obtained. When these elements are in place, the developer receives competitive upfront capital at closing.
Your Role in Getting the Structure Right
You will not draft bond documents — that is the work of your ED team, financial advisors, and bond counsel. Your role is to ensure the right professionals are engaged, the feasibility study is thorough, and the governing body has the information needed for the two-thirds supermajority vote. When Hageman Capital is identified early as the capital provider, it gives everyone involved — the developer, the lender, and your council — certainty that the deal has been vetted by professionals who purchase these bonds for a living.
The Outcome
When structured correctly: the developer sells the bond to Hageman Capital and receives upfront cash, the city issues the bond as a conduit with zero credit exposure, the project gets built, and the tax base grows. School district and state mill levies are protected throughout. When the 20-year TIF period ends, all revenue flows permanently to every taxing jurisdiction.
Hageman Capital helps Kansas mayors ensure their TIF projects achieve this outcome — at no cost. Connect with Whitney Peterson to get the structure right for your community.
If you are a Kansas mayor exploring developer-backed TIF Bonds for the first time, this overview covers what you need to know. The Taxpayer Agreement Act (HB 2737), signed into law in April 2026, gives your city one of the strongest TIF frameworks in the country — combining Kansas’s established special obligation bond authority with new enforceable developer guarantees.
What TIF Is and What It Is Not
TIF captures the increase in property taxes generated by new development and directs that increase toward eligible public infrastructure costs. No new taxes are created. No tax rates increase. The base year taxes continue flowing to all taxing jurisdictions as usual — and the 20 mills for school districts plus 1.5 mills for the state are fully protected from TIF capture. Only the increment, the growth that would not exist without the project, is set aside for up to 20 years to support eligible costs.
What HB 2737 Changes
The Taxpayer Agreement Act authorizes voluntary taxpayer agreements where the developer guarantees payments on TIF bond debt. Delinquent payments are enforceable as delinquent real estate taxes. The Act also authorizes conduit bonds — where the city has no obligation to advance funds or levy taxes for repayment. This means your municipality bears zero financial risk on developer-backed TIF Bonds.
Your Role as Mayor
You champion projects publicly, ensure the governing body has sound analysis (including the required feasibility study), and guide the two-thirds supermajority vote to adopt the project plan. You are not expected to be a TIF structuring expert — that is what your ED team, financial advisors, and resources like Hageman Capital are for. What you need to communicate to constituents is clear: TIF does not spend public money, does not redirect existing revenue, and under HB 2737, does not put the city’s credit at risk.
Mississippi mayors have long understood that attracting quality development is one of the most important things they can do for their communities. More development means more jobs, a stronger tax base, and a higher quality of life for residents. But incentivizing that development — particularly large-scale commercial real estate projects — has always come with a difficult question: how much public risk is too much?
New TIF legislation in Mississippi is changing the answer. Senate Bill 2846, signed into law and effective July 1, 2026, introduces a financing mechanism that allows municipalities to support major development projects through developer-backed TIF bonds — a structure that shifts capital risk away from the city and onto the developer, where it belongs.
For mayors looking to grow their communities without putting municipal credit on the line, this is a tool worth understanding.
What Is TIF, and Why Does It Matter?
Tax Increment Financing is not a new tax. It does not raise anyone’s tax rate. Instead, TIF captures the increase in property tax revenue — the “increment” — that a new development project generates, and directs that increase toward paying for costs associated with that project. Here is how it works in simple terms. Before a project is built, a piece of land generates a certain amount of property tax revenue each year. That is the original assessed value. After a development is completed, the land and improvements are worth more, so property taxes go up. The difference between the new, higher amount and the original assessed value is the increment. Under TIF, that increment is set aside and used to repay the costs that made the project possible.
The original tax revenue continues flowing to the city, county, schools, and other taxing jurisdictions as usual. Nothing changes about those funds. Only the increment is redirected, and only for a limited period — up to 30 years under Mississippi law. When the TIF period ends, all revenue, including what was the increment, flows back to every taxing body at full value.
Developer-Backed TIF Bonds: The Key Difference
This is where Mississippi’s new legislation creates a meaningful shift for mayors.
In a traditional TIF structure, the municipality may issue bonds backed by its own credit to finance a project. That means the city carries the financial risk if the project underperforms. Developer-backed TIF bonds work differently. Under this structure, the municipality issues a TIF bond directly to the developer. The developer then assigns that bond to a capital provider — like Hageman Capital — in exchange for upfront cash to fund construction. The bond is repaid over time solely from the incremental property taxes generated by the completed project.
The critical distinction: the bond does not constitute a general obligation of the municipality. It does not count against any constitutional or statutory debt limits. The city’s general credit and taxing power are never pledged. If the increment falls short, the developer — not the city — is responsible for covering the gap.
SB 2846 strengthens this protection further by authorizing voluntary taxpayer agreements between the municipality and the developer. These agreements create a binding contractual obligation for the developer to make up any shortfall in increment revenue. They can even be secured by a lien on the project property itself, recorded at the county level, with priority comparable to ad valorem tax liens. This gives municipalities an additional layer of assurance that the project will perform as promised.
What This Means for Your Community
As a mayor, every major development decision carries your name. Constituents want to know that public resources are being used wisely, and council members want to be confident that the city is not taking on unnecessary exposure. Developer-backed TIF bonds address both of those concerns directly.
Because the developer holds the financial risk, you can support transformative projects — multifamily housing, mixed-use developments, commercial centers — without putting your city’s balance sheet on the line. The municipality acts as a conduit issuer, facilitating the bond but never guaranteeing it. The project pays for itself through the new tax revenue it creates.
This structure also gives you a powerful recruiting tool. Developers evaluating where to build their next project are looking for municipalities that understand modern incentive tools and can move efficiently. Offering a clear, well-structured TIF bond pathway signals that your city is development-ready and business-friendly — without the perception that you are giving away public dollars.
How the Process Works
The path from initial conversation to project completion follows a clear sequence. A developer approaches the municipality with a proposed project and makes the case for TIF assistance. The city evaluates the proposal, prepares a redevelopment plan and TIF plan, holds a required public hearing, and then the governing body votes to approve the plan. From there, the municipality and the developer negotiate a redevelopment agreement that spells out construction timelines, eligible costs, developer guarantees, and the taxpayer agreement provisions authorized under SB 2846. Once the agreement is executed, the municipality issues the TIF bond to the developer, who then assigns it to a capital provider for upfront funding.
Throughout the process, transparency is built in. Public hearings give residents and affected property owners a voice. The redevelopment plan is documented and adopted by resolution. And the taxpayer agreement ensures the developer has contractual skin in the game.
A Resource, Not a Sales Pitch
Navigating TIF for the first time — or adapting to new legislation — does not have to fall entirely on your shoulders. Hageman Capital works with municipal leaders across the country as a resource for understanding how developer-backed TIF bonds are structured, how they protect municipal interests, and how they can be deployed to attract the kind of development your community needs. There is no cost to the municipality for this expertise. The goal is straightforward: help mayors and their teams make informed decisions about a tool that can drive meaningful growth.
If your city is fielding development inquiries, or if you are looking for ways to compete for quality projects without assuming financial risk, understanding developer-backed TIF bonds is a strong place to start.
