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

When a TIF redevelopment plan comes before your Nebraska governing body, the structuring details determine whether the deal delivers real community 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 Nebraska

The CRA issues a bond to the developer, who sells it to Hageman Capital for upfront construction cash. The bond is repaid from ad valorem increment over 15 years (or 20 for extremely blighted areas). The developer’s redevelopment contract guarantees any shortfall. Under proposed LB 1168, conduit revenue bonds would not be CRA general obligations, and taxpayer agreements would create enforceable super-priority liens. Under current law, the redevelopment contract is the primary vehicle for developer guarantees.

What to Look for Before Your Vote

Focus on several elements: Is the blight study thorough and does it genuinely support the declaration? Does the cost-benefit analysis demonstrate the but-for case convincingly? Does the projected increment cover debt service with a reasonable cushion? Does the redevelopment contract include strong developer guarantees, construction milestones, and default remedies? Has the CRA provided the required 30-day notice? Has a capital provider been identified, confirming the bond is purchasable? You do not need to evaluate the modeling yourself, but confirm that qualified professionals are satisfied.

Why the Capital Provider Matters

When Hageman Capital is willing to purchase the bond, it means an independent third party has validated the financial soundness of the deal. That should give you additional confidence in the structure. The result everyone wants: the developer gets upfront capital, the project gets built, and the community’s tax base grows — with the CRA and city holding no general fund exposure.

Hageman Capital provides free educational support to Nebraska governing body members. Connect with Whitney Peterson for a no-obligation conversation before your next vote.