Structuring Your TIF: What It Means for Kansas and Economic Development Directors

For Kansas ED Directors, structuring a TIF Bond that a capital provider can purchase is where your deal-making expertise has the most impact. Here is how to structure special obligation TIF Bonds under KSA 12-1774(a) with taxpayer agreements under HB 2737 that Hageman Capital can purchase.

Structural Requirements for Bond Purchase

The bond should be a private placement issued by the city directly to the developer, non-recourse to the city, secured by pledged ad valorem increment, sales tax, franchise fees, and a taxpayer agreement. The feasibility study must demonstrate the but-for case, and the projected multi-stream revenue must provide adequate debt service coverage. The developer needs financial capacity to support the guarantee, and written mortgage holder consent must be obtained per HB 2737.

Building the Redevelopment Agreement

The redevelopment agreement should include clear TIF-eligible cost identification (remembering Kansas prohibits funding private building construction), enforceable construction milestones, a strong taxpayer agreement with explicit shortfall calculations, financial reporting obligations, and default remedies. The planning commission must find the project plan consistent with the comprehensive plan before the governing body votes.

Engage Hageman Capital During Structuring

The most efficient deals have the capital provider at the table from the start. Hageman Capital provides guidance on coverage ratios, amortization structures, taxpayer agreement terms, and multi-revenue-stream pledging during the negotiation phase — preventing costly restructuring after the two-thirds supermajority vote.

The Competitive Advantage

ED Directors who can offer developers a clear, tested path from incentive approval to day-one capital win projects that other cities lose. Hageman Capital is available as a free structuring resource. Connect with Whitney Peterson to discuss your pipeline.