TIF Expertise: Common Pitfalls for Nebraska Mayors to Avoid

Nebraska’s Community Development Law gives mayors a proven TIF framework — but the procedural details and unique characteristics of Nebraska TIF create specific pitfalls to watch for. Hageman Capital works with municipal leaders across the state, and here are the missteps we see most often.

Pitfall 1: Underestimating the Blight Declaration Process

Nebraska TIF requires a substandard and blighted declaration before any redevelopment plan can be adopted. The blight study must be commissioned, submitted to the planning commission for a 30-day review, followed by a public hearing with two weeks of published notice plus mailed notice to affected associations and political subdivisions. This process takes time. Mayors who assume blight can be declared quickly risk missing the July 1 Notice to Divide Tax deadline — delaying the entire project by a year.

Pitfall 2: Missing the July 1 Deadline

The Notice to Divide Tax must be filed with the county assessor on or before July 1 of the calendar year in which the tax division becomes effective. This is a hard deadline — miss it and the taxes remain undivided for the affected year. Build this deadline into your project timeline from day one and work backward to ensure all approvals are complete in time.

Pitfall 3: Poor Communication About Taxing Body Impact

Nebraska requires mailed notice to every county, school district, community college, and political subdivision affected by the TIF plan. These entities will scrutinize the proposal. Be prepared to explain that base value taxes continue flowing as usual, only the excess value is captured, and the cost-benefit analysis demonstrates the project is in the community’s long-term interest. Proactive communication builds support before opposition forms.

Pitfall 4: Not Ensuring the CRA Is Active and Prepared

Many Nebraska cities have CRAs that exist on paper but have not been actively used. If your CRA lacks current board members, operating procedures, or staff capacity, it will slow the TIF process. Ensure your CRA is active, staffed, and ready before a developer brings a project to the table.

Pitfall 5: Going It Alone

Hageman Capital provides TIF structuring expertise to Nebraska mayors at no cost. Request a meeting with Whitney Peterson, our Director – Government Relations, and make sure your community’s next TIF project is built on a solid foundation.