HC Case Study, and What It Means for Nebraska

When Old Town Companies developed the North End project in Carmel, Indiana, they faced a challenge Nebraska developers encounter regularly: a community-serving, mixed-use project that needed creative financing to bridge the gap between total cost and what private capital alone could cover. TIF and Hageman Capital’s ability to purchase TIF bonds made the project possible. For Nebraska municipal leaders working within the Community Development Law — and preparing for potential changes under LB 1168 — this case study illustrates how developer-backed TIF works in practice.

The North End Project

North End is a mixed-use development in Carmel, Indiana: 168 high-end apartments (including 40 units for individuals with intellectual and developmental disabilities), plus office and retail space. Old Town Companies served as the developer, and the City of Carmel provided TIF support backed by the real estate. The project addressed real community needs in an area with limited development along the Monon Trail — but mission-driven housing rarely pencils without public incentives.

How TIF Made It Work

Old Town was financing through a Freddie Mac program requiring municipal incentives and affordable unit set-asides. TIF provided the incentive, but Old Town needed upfront capital at loan closing — not years of incremental payments. Hageman Capital purchased the TIF bonds, delivering the equity required to close the construction loan. The project closed in December 2021 and is now complete, generating long-term tax base growth for Carmel.

What Nebraska Municipal Leaders Should Take Away

The principles translate directly to Nebraska’s framework. TIF makes projects feasible that would not otherwise proceed — satisfying the cost-benefit analysis and but-for test Nebraska requires. Developer-backed TIF bonds shift risk from the CRA to the developer. The ability to sell the bond to a capital provider transforms TIF from a long-term revenue stream into immediate construction capital. Under proposed LB 1168, conduit revenue bonds and taxpayer agreements would further insulate the CRA while providing lenders with super-priority lien security.

Nebraska’s ad-valorem-only TIF framework means the increment consists solely of real property tax increases — making accurate assessment projections and conservative timeline assumptions especially important. The 15-year standard period (20 for extremely blighted areas) shapes the amortization structure differently than longer-term states.

Hageman Capital: Your TIF Partner at No Cost

Hageman Capital purchases developer-backed TIF Bonds and serves as a free resource for Nebraska municipal leaders and CRAs. Connect with our team to see how TIF can transform development in your community.