The fear that keeps economic development directors up at night is simple: a qualified developer walks away because a competing city offered a more attractive incentive package. Developer-backed TIF Bonds change that calculus. Under Tennessee’s new taxpayer agreement framework, you can structure an incentive where the developer receives upfront capital from the sale of their TIF Bond to a capital provider like Hageman Capital — while the municipality assumes zero credit risk. The developer contractually guarantees any shortfall in tax increment revenue through a taxpayer agreement, and the lien carries first-priority status, running with the land. This means you can offer a financially compelling incentive without over-committing public resources, and you can explain that structure confidently to your mayor, council, and financial advisors.

For ED Directors, TIF is not about closing one deal — it is about building a repeatable incentive framework that attracts investment and compounds your community’s tax base over time. Tennessee allows TIF allocation periods of up to 20 years through an IDB or 30 years through a Housing Authority, with the increment consisting of the increase in property taxes above the base amount. The process moves from developer application through project evaluation, TIF plan preparation, public hearing, governing body approval, and bond issuance. At no point does the municipality pledge its general credit. Your developer gets upfront construction capital, your community gets a completed project, and your tax rolls grow without any municipal debt on the books.