Bonding with TIF: November 2014 Key Considerations in TIF Bond - - PowerPoint PPT Presentation

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Sep 26, 2022 215 likes •337 views

Bonding with TIF: November 2014 Key Considerations in TIF Bond Issuance Peter J. Raphael Initial Key Considerations of TIF Bond Issuance Determine the Type of TIF Financing Determine the Structured Enhancements Assess the Status of

SLIDE 1

Bonding with TIF: Key Considerations in TIF Bond Issuance

November 2014

Peter J. Raphael

SLIDE 2

Initial Key Considerations of TIF Bond Issuance

Determine the Type of TIF Financing
Determine the Structured Enhancements
Assess the Status of the Development and

the Developer

SLIDE 3

Why Consider Revenue Bonds?

Save G.O. Borrowing Capacity
Limit Downside Risk
Instill Market Discipline

SLIDE 4

Why Consider General Obligation Bonds?

Lower Rates
Ease of Execution

SLIDE 5

Potential Enhancements

General Obligation
Additional Revenues
Benefits Assessments
Sales Tax
Other Taxes – Business District, Transportation District,

Amusement Tax

Other Income from the project
Bond Rating

SLIDE 6

Structural Issues

Capitalized Interest
Debt Service Reserve
Debt Service Coverage
Priority of Lien
Order of Funding
Conflicts with the Development Agreement

SLIDE 7

Third Party Reports

Market Study
Feasibility Report
Appraisal?

SLIDE 8

Status of the Development

Construction Issues
Historical vs. Projected Increment
Diversification of Taxpayers
Leasing Status

SLIDE 9

Status of the Developer

Developer Equity
Developer Experience
Bank Loans/Other Funding

SLIDE 10

Current TIF Bond/Note Market

Fund Flows
Credit Issues
Interest Rates
Continuing Disclosure

SLIDE 11

Why Haven’t We Seen More Connecticut TIFs?

Structure of your taxing bodies
Structure of your sales tax
No comprehensive TIF law