Tuesday, May 8, 2007

TIFs - a worthwhile pain in the neck


Let's face it: Tax increment financing (TIF) deals can be no fun at all. (But they can be profitable for a lawyer jumping through hoops, and you have to keep jumping through them for the life of the deal.) But this form of financing is often what makes or breaks a deal, or at least so developers will tell you. And that's just what Walton Street Capital is telling the city as I type, as it seeks $51 million in TIF funds for the Old Post Office.

Is it true? Maybe. I won't speculate. The staff report apparently says the project will not get "reasonable rates of return" without TIF money. Does that mean institutional rates of return or Walton Street-style rates of return?

By the way, if you want to know more about TIFs take a look here. You can also learn about the positive aspects of TIFs there. If you want an opposing view on TIFs, however, look here.

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