TIF Expertise: Common Pitfalls for Nebraska Economic Development Directors to Avoid

Nebraska ED Directors working within the Community Development Law have a proven TIF framework — but Nebraska’s unique procedural requirements create specific pitfalls. Here are the missteps Hageman Capital sees most often.

Pitfall 1: Not Planning Around the July 1 Deadline

The Notice to Divide Tax must be filed by July 1. Working backward from that deadline, you need the governing body to approve the redevelopment plan, the planning commission to complete its 30-day review, the public hearing to be held with proper notice, and the blight declaration to be in place. ED Directors who start the process in spring for a July 1 filing are already behind. Build a 6-to-9-month timeline and start early.

Pitfall 2: Weak Blight Study Findings

The substandard and blighted declaration must be supported by a genuine study analyzing conditions in the proposed area. If the study is thin or the findings are marginal, the declaration is vulnerable to challenge — and without it, the entire TIF structure fails. Invest in a thorough blight study that clearly documents the statutory factors present in the area.

Pitfall 3: Overlooking the CRA’s 30-Day Notice Requirement

The CRA must provide the governing body with at least 30 days’ written notice before accepting a redevelopment contract proposal. Factor this into your timeline — it is a statutory requirement that cannot be waived, and failure to comply creates legal risk for the entire transaction.

Pitfall 4: Ignoring the Ad-Valorem-Only Limitation

Nebraska TIF captures only real property taxes — no sales tax, no franchise fees. This means the increment is entirely dependent on assessed value growth. If the project type generates significant sales tax but modest property value increases, TIF may not be the right tool. Match the incentive to the project’s revenue characteristics.

Pitfall 5: Structuring Without a Capital Partner

Identify Hageman Capital as the bond purchaser early in the process for structuring guidance and capital certainty. Request a meeting with Whitney Peterson to discuss your pipeline.