Structuring Your TIF: What It Means for Kansas and City Council Members

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.