Helping Municipalities Invest in Development with TIF
Untamed Equity has a mission of closing the gap in the market to find equity and fund projects fully by utilizing the incentives structured into TIF deals. We realize that cities across the country are relying on economic development and the developers who lead those projects more than ever, but a common issue in these situations is the lack of funds needed to complete the projects.
Our group of experts partner with local governments and developers to tackle this issue by bridging the gap in equity with TIF monetization loans. Untamed Equity teams up with commercial real estate developers to originate loans and provide funding up-front with the help of investors. Once the TIF incentives are monetized, the developer has the capital needed to get a project to the finish line and even to invest in other development projects along the way.
We ultimately think this program will play a huge role in economic growth in communities across the United States. TIF is a powerful tool for developers, and when leveraged correctly, can provide massive benefits to both the developer and the municipality. The Untamed Equity team has already harnessed over $450 million in economic development projects utilizing TIF monetization in nine states. The projects we’ve partnered on have renewed blighted areas, renovated historic landmarks, improved public infrastructure and more. What improvements could be made in your city? The possibilities are endless.
Breaking it Down
TIF Monetization and Uses
Generally, we monetize 3 types of TIF loans:
TIF Notes or Developer Notes
Revenue Obligation Bonds
A Catalyst for Growth
We monetize TIF loans to get projects off the ground and create economic growth in slum or blighted areas.
The Benefits of Tax Increment Financing for Municipalities
How can TIF monetization loans benefit the municipality?
The developer is more likely to follow through on the project as their funds are put in first. There is also a higher equity infusion, making the project substantially more viable.
Learn More about TIF Benefits for Municipalities
How we Partner
Working with TIF Districts to Provide Funding Up Front
Once a development project is identified within a TIF district and there are eligible costs, there are likely discussions happening between the city and the developer about how they can recover additional costs to complete the project. Within the produced Development Agreement, it will be decided how the TIF expenses are reimbursed. Commonly, this is by utilizing a Pay-As-You-Go incentive, where the municipality will specify how much they are willing to reimburse of the TIF as shares the developer receives yearly.
Untamed Equity supercharges this incentive by modeling these future payments and lending a lump sum amount to the developer upfront in order to bridge gap equity needed to complete the project. Once we partner on a development project, we will help structure the deal and originate the loan, to be held with a trusted investor or financial institution. We will then service the TIF project until the loan is paid off completely.
Our team of experts is ready to partner on your next city development project. We have over 100 combined years of experience in lending and economic development. We understand the many challenges that face growing communities, but we know how to address them and provide a strategic plan for utilizing funds available within TIF districts.
Contact us today to learn how TIF monetization could work for your next project.