Polsky & Associates structures and negotiates TIF and other inducement
agreements for major real estate developers across the country, dealing
with governmental officials, bond counsel, and financial advisers.
The firm counsels its clients in all legal, political, and financial
aspects of the economic entitlement process.
Polsky & Associates analyzes the financial models and assumptions
necessary to achieve optimum results for each development. Its expertise
and valued relationships with governmental bodies has helped Polsky
& Associates structure hundreds of millions of dollars in TIF
and other governmental inducement agreements.
- Increase return on investment
- Make borderline projects profitable
- Problem sites may have extraordinary costs that can be reimbursed
through the use of TIF or Sales Tax incentives.
What is TIF?
Use of new real estate or sales taxes generated by new development
to help pay for project costs.
How long is the TIF Payment Period?
Generally, TIF Bonds and Notes extend for 10-20 years.
Must TIF dollars be paid back?
No. TIF Dollars are considered grants to the project and are generally
not secured by the real estate.
"TIF" Tax Increment Financing
TIF financing is generally available in most states for developing
properties that meet certain criteria. Any new property tax revenue
exceeding the original tax revenue at the time of the TIF district
designation may be used to pay certain development costs. In certain
jurisdictions, a portion of new sales tax revenue can also be pledged
to pay for certain costs of the development.
Do all projects qualify?
TIF financing generally requires a finding that the site qualifies
under applicable state statutes. Projects involving redevelopment
of older centers usually qualify as well as vacant sites with special
site requirements. Sales tax financing usually requires no special
Sales Tax Agreements
Even if property does not meet the criteria for TIF designation,
many states allow municipalities to pledge sales taxes to pay a
portion of redevelopment costs. No district designation is usually
required for sales tax financing.
A real estate return analysis is presented to the municipality.
A gap analysis must show that "but for" the TIF or sales
tax financing the project would not be financially feasible.