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Construction Project Financing Programs - Continued...
Creating a TIF Plan is
subject to some considerations you need to know about before you proceed
full-steam ahead. The considerations you need to understand
include:
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Litigation.
The filing of a TIF plan frequently attract litigation and it can be
a very long process. This impacts budget planning as a
significantly higher amount of project carrying costs must be
reconciled by the developer or owner/operator (as the case may be).
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Funds
Availability. Availability of funds from a TIF Plan are also a
financing consideration. The prototypical TIF plan provides
funds upon completion of construction to insulate the bond holders
from construction risk. This means you need to get a
construction loan or bridge loan to provide for construction phase
expenditures. Pre-construction phase project financing is not
typically possible using the TIF Plan approach. You have to
budget the direct, indirect and carrying costs of the project.
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Entitlements.
TIF Plans may be used in tandem with other local, state and/or
federal incentives to provide a higher level of financial investment
leverage. This means that you need to have an entitlements
review completed to see if NMTCs, Brownfields, Historical and other
tax credits and/or tax-advantaged investment incentives can be
brought to bear for your benefit. (we hope you will retain RMC
for this review)
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To find
out more, please call a Rainmaker Marketing Corporation consultant and expect answers to your
questions. The first call is always free.
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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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