What we do
Turning Pay-as-You-Go TIF Incentives into Upfront Funds
We are a team of lending specialists uniquely positioned to help developers and municipalities because of our diverse backgrounds in economic development, commercial lending, and banking. We have an understanding of the issue from both sides of table. Municipalities need economic development. Developers want to build projects. We know that often times, deals don’t make it to the finish line because of the lack of equity needed to close the project funding. Monetizing incentives is an important tool that helps these deals fund gap equity.
At this point in the deal stage, you have identified your project, assessed that there are Tax Increment Financing (TIF) eligible costs, and maybe started discussions with the municipality on how you can recover the additional costs to get this project complete. These discussions produce a Development Agreement which specifies certain terms to build the project.
The simplest means of reimbursing a developer for TIF eligible expenses is with a Pay-As-You-Go incentive. In the development agreement the municipality will specify how much they are willing to reimburse as well as the developer share of the tax increment payments they will get back each year. Untamed Equity supercharges this incentive by modeling these future payments and lending a lump sum amount to the developer upfront to bridge the gap equity needed to complete the project.
What is TIF?
Tax increment financing helps build communities by providing economic incentives through tax-saving rebates following development. TIF has become an extremely useful tool for municipalities and developers and has supported the financing of hundreds of projects per year in nearly every state across the country.
The original intent of TIF districts was to finance urban renewal in blighted areas and make public improvements in communities. Since their inception in the 1950s, TIFs have evolved to include the promotion of economic development throughout a municipality. To encourage development, a TIF district creates a base level of assessed property value to which is assesses taxes for a given period. For the life of the TIF, growth in property value taxation above the baseline level (“the increment”) flows to the TIF fund to finance development in the district.
Put TIF Funds to Work
Fueling Economic Growth for Cities and Developers
Untamed Equity works with both developers and municipalities to harness funds for economic growth and commercial real estate development across the U.S. We review development agreements and structure the gap equity to utilize the incentives in the agreement. We deliver a funded project by partnering with institutions to hold the loans, then we service the project until the loan is paid off.
TIF Monetization Benefits for Developers
TIF Monetization Benefits for Municipalities
Providing Services to TIF Projects & Funds
The Untamed Equity team has over 100 years of combined experience in commercial real estate lending and economic development. We have previously partnered to harness TIF loans in cities across the United States, fueling $450 million in various projects.
Untamed Equity works with developers and municipalities to originate and service large commercial loans in TIF districts, which simplifies the financing process all around. Our expertise allows us to enhance economic development projects of all kinds by leveraging the power of TIF monetization.
Our services exist to keep projects flowing and economic growth expanding in cities across the country.
Our origination services allow developers to continue business as usual, because we handle everything from analyzing the model, creating a loan structure, collecting documentation, and closing the loan.
Until the loan is paid off, Untamed Equity will continue servicing the project. This includes the analysis of increment payments and maintaining our relationship by managing communication between the lending institution and the developer.
As renewals happen, Untamed Equity will lead negotiations, update underwriting, facilitate investor approval, and document the renewal.