Know Your Audience: How Developers Can Best Use TIF in Nebraska Communities

Nebraska municipal leaders and CRAs field developer inquiries regularly. Understanding what drives commercial real estate developers — how they evaluate markets, what makes a project financially viable, and what they need from your municipality — is essential to deploying TIF effectively under the Community Development Law.

How Developers Choose Where to Build

Developers evaluate population growth, employment centers, infrastructure quality, regulatory environment, and the competitive incentive landscape. Nebraska cities — from Omaha and Lincoln to smaller communities across the state — compete for developer attention. The city that can articulate its TIF process clearly and move efficiently from application to bond issuance wins the conversation. Nebraska’s established Community Development Law framework, combined with active CRAs in many cities, positions municipalities well — and proposed changes under LB 1168 would strengthen that position further.

The Financial Anatomy of a Development Project

Every project has a capital stack — equity, debt, and incentives. TIF fills the gap between total cost and what private capital alone can cover by capturing the incremental property tax revenue generated by the completed project. When the developer sells their TIF Bond to Hageman Capital, that future revenue stream becomes upfront cash — reducing equity requirements and accelerating the project timeline. In Nebraska, where TIF captures only ad valorem property taxes (no sales tax or franchise fees), the increment projection is especially sensitive to assessed value accuracy and development timing.

What Makes a Nebraska Project Ideal for TIF

Nebraska TIF requires a substandard and blighted declaration — the threshold requirement. Projects best suited for TIF include those in areas with deteriorated structures, defective street layout, environmental contamination, or other conditions that meet the statutory blight criteria. Eligible costs include site acquisition, demolition, utilities, streets, environmental remediation, and public improvements. The developer bears the cost of constructing private improvements from their own funds. Projects with significant public infrastructure needs and a projected assessed value increase large enough to generate meaningful increment are ideal candidates.

Positioning Your Municipality

Developers value certainty and speed. Having an active CRA, pre-identified substandard and blighted areas, and a clear application process positions your city to compete. Understanding the July 1 Notice to Divide Tax deadline and the 30-day planning commission review period helps you set realistic timelines for developers considering your community.

Hageman Capital: Bridging Municipalities and Developers

Hageman Capital purchases developer-backed TIF Bonds and works with Nebraska municipal leaders at no cost. Connect with our team to learn more about positioning your city for developer success.