We like to think of there being five phases to using public financing, such as tax increment financing, related to real estate development:
- Seeing an opportunity and developing a vision
- Prepare a plan for the financing necessary to make the vision a reality
- Obtaining approval from the local governmental agencies of the financing plan
- Arranging the financing
- Implementing the plan
Seeing the opportunity and developing the vision, as well as implementing the plan, is what our clients do best. MuniCap can provide services to help make the other three phases successful. MuniCap also can help with some of the regulatory and reporting details required during the implementation so our clients can focus on the work of making the vision a reality.
A description of the services provided by MuniCap for each of these phases follows:
Preparing the plan of finance
The plan of finance provides the framework on which the approvals and arranging the financing is built around. It is, therefore, critical that the plan of finance be realistic. There are four primary sets of constraints that must be addressed in developing a realistic plan of finance for a real estate development project. These are: development project issues, legal issues, financial market issues, and public policy issues.
MuniCap is able to develop a plan of finance for the use of public financing related to real estate development, including tax increment financing, that addresses each of these issues to ensure the plan is practical and will be able to be implemented to successfully raise the capital required for the project.
Obtaining governmental approval
MuniCap is not a lobbying firm. We do not lobby government agencies. Our expertise is to address the public policy issues in the plan of finance so that the proposed use of public financing will make sense for the local government agencies. We want to make sure that our clients have good answers to appropriate questions. We also want to make sure we effectively communicate these answers to local government officials and the public. The best answers start with a thorough understanding of the issues, followed by the research and analysis to have the best understanding of the facts. No one does this better than MuniCap.
Arranging the financing
MuniCap has extensive experience working on teams to successfully take bonds to market. We know the many different options for structuring the financing and the tradeoffs of these options. We also understand the discipline required for the information and analysis provided to investors. MuniCap can help put together a successful public financing for a real estate project and provide the research and analysis required for projecting tax and other revenues available repay the debt. Because of our extensive experience successfully raising public capital for real estate development, we can provide our clients with the best advice available on the issues related to arranging tax increment and other public financing.
Implementing the plan
The work really starts when the money has to be spent. Public proceeds require a significant amount of oversight and reporting. MuniCap can take care of these details to ensure a high degree of transparency so our clients can focus on making the project a reality.
Most of the professionals involved in a TIF or other public financing are done once the bonds are issued. A bond issue, however, is not successful if not successfully implemented. MuniCap provides a full array of ongoing debt administrative support services related to public financing for real estate development projects. MuniCap currently provides these services on over 120 bond issues across the country.
- SEC requirements (i.e., continuing disclosure)
- Updating special tax and assessment rolls, including preparation of appropriate documentation to ensure a record of the methodology used in these levies
- Tax increment revenue calculation and verification
- Annual special district budget preparation
- Project monitoring, surveillance, and reporting
- Financial accounting and record keeping for special districts and trustee oversight
- Requisition review and audit file maintenance
- IRS compliance record keeping and monitoring
MuniCap's extensive experience and depth of knowledge that comes from specialized expertise enables us to provide our clients with the premier level of service during each phase, from conceptualization to implementation, to make public finance programs for real estate development a reality.