There are three distinct financial tools that can be used individually or collectively to craft a well-conceived, balanced source of funds for the community to promote redevelopment and enhancement. Our firm often recommends these tools be used in a layered manner so that adequate redevelopment funds can be obtained without over-taxing any single constituency within the redevelopment area.
An ongoing part of our deal structuring process is to analyze how each of these tools can be employed, exclusively or as a capital stack, to achieve the dual objective of sufficient funding for projects and minimal financial impact on taxpayers. This is particularly important and useful in tight capital markets where credit enhancement may not allow full faith and credit of the community. These revenues can be used for bridging a developer gap and financing any public improvements the community desires.