The Risk Equation
Taxpayer agreements change the risk equation
The central concern for financial advisors evaluating TIF has always been: who holds the risk if the increment falls short? Tennessee's new legislation answers that definitively — the developer contractually guarantees any shortfall through a taxpayer direct payment mechanism that insulates the municipality entirely.
- The lien is recorded with the register of deeds, runs with the land, holds first priority over any existing or subsequent mortgage, and is enforceable as real property taxes
- Deed-of-trust acceleration provisions triggered solely by entering a taxpayer agreement are unenforceable by statute
- Bonds do not constitute municipal debt and do not count against statutory debt limitations
- No recourse to the municipality's general credit
Structuring Your TIF: What It Means for Tennessee and Municipal Finance Advisors
For Tennessee municipal financial advisors, structuring a TIF Bond that a capital provider will purchase is the technical exercise that determines whether a developer-backed TIF transaction delivers its intended benefits. The deal that works — upfront capital for the developer,[…]
TIF Overview for Tennessee Municipal Financial Advisors
Tennessee’s new TIF legislation (SB 1760 / HB 1892) introduces legal instruments that materially change the risk analysis for TIF-supported projects. For municipal financial advisors responsible for evaluating bond structures and protecting the municipality’s fiscal position, this overview covers the[…]
TIF Expertise: Common Pitfalls for Tennessee Municipal Finance Advisors to Avoid
Municipal financial advisors are the last line of defense before a TIF bond structure reaches the governing body for approval. Tennessee’s SB 1760 introduces taxpayer agreements and first-priority liens that strengthen the developer-backed TIF framework — but the technical details[…]
Download the Technical TIF Guide for Financial Advisors
Our free Tennessee Developer-Backed TIF Bond Guide provides the statutory detail financial advisors need — covering the full SB 1760 / HB 1892 framework, lien priority mechanics, taxpayer direct payment calculations, Housing Authority vs. IDB structuring considerations, increment modeling methodology, and compliance requirements under the Uniformity Act. Get the resource built specifically for professionals responsible for protecting the public interest.
Prefer to reach us directly?
capital@hagemancapital.com
Built for Scrutiny
Structure TIF bonds that withstand scrutiny
Developer-backed TIF Bonds in Tennessee can be issued through either a Housing Authority (up to 30 years) or an Industrial Development Board (up to 20 years). The bond is non-recourse to the TIF agency — payable solely from tax increment revenues, with the developer's taxpayer agreement serving as the contractual backstop. The structure provides enforceable security that traditional TIF lacked, giving you a defensible recommendation to bring to elected officials. Your role:
- Evaluate projected increment against proposed debt service
- Stress-test assumptions on development timeline and assessed value growth
- Coordinate with overlapping taxing jurisdictions
- Ensure the full statutory process — public hearings, governing body approvals, state filings — is followed
Let's Review the Structure Together
Hageman Capital works alongside municipal financial advisors as a specialized TIF resource — not a replacement for your role, but a complement to it. Our team has deep experience structuring developer-backed TIF Bonds across multiple state legislative frameworks, and we understand the technical details that matter to professionals protecting the public interest. Whether you need to model increment projections, evaluate a developer’s financial capacity, or simply want a second set of eyes on the taxpayer agreement structure, we are here to help at no cost. Connect with our team and let’s talk through the deal on your desk.
Prefer to reach us directly?
capital@hagemancapital.com