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

For Nebraska ED Directors, structuring a TIF Bond that a capital provider can purchase is where your expertise delivers the most value. Here is how to structure bonds under the Community Development Law that Hageman Capital can purchase — and how proposed LB 1168 would expand your options.

Structural Requirements

The bond should be issued by the CRA to the developer as a private placement, backed by the redevelopment contract with developer guarantees, and supported by ad valorem increment projections demonstrating adequate coverage. The blight declaration, redevelopment plan, cost-benefit analysis, and July 1 filing must all be complete. The developer needs financial capacity to support the guarantee. Under LB 1168, conduit revenue bonds would provide clearer statutory insulation for the CRA, and taxpayer agreements would add enforceable lien security.

Building the Redevelopment Contract

The redevelopment contract should include clear TIF-eligible cost identification, enforceable construction milestones, developer shortfall guarantees, financial reporting obligations, and default remedies. Remember the CRA must give the governing body 30 days’ notice before accepting the contract. The developer bears the cost of private improvements — TIF covers site acquisition, demolition, infrastructure, and public improvements. Structure the eligible cost allocation to match what the increment can realistically support.

Engage Hageman Capital During Structuring

Having the capital provider involved during negotiation ensures the bond is structured to meet purchase criteria from the start. Hageman Capital provides guidance on coverage ratios, amortization within the 15-to-20-year period, developer guarantee terms, and ad-valorem-specific modeling considerations — at no cost.

Connect with Whitney Peterson to discuss the deals in your pipeline.