Structuring Your TIF: What It Means for Kansas and Mayors

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.