Practices: Economic Development Financing

Economic development financing is a complex undertaking that can combine tax incentives with government tax-exempt bond financing for infrastructure construction such as roads, sewers and other public utilities. If you are looking to establish, expand or relocate an industrial or other commercial business, or if you represent a governmental entity wishing to offer financial incentives to such businesses, we can help you achieve your development objectives. Ungaretti & Harris understands the legal, political and business factors involved in establishing effective development incentives, and knows how to help all parties involved achieve their economic objectives.

Development Bonds

We are active in facilitating economic development bond financing for clients throughout the Midwest. You get the benefit of our experience on numerous economic development financing transactions. That includes work as bond counsel and underwriters’ counsel, developers’ counsel and issuer’s counsel on such financing vehicles as special assessment bonds, special service bonds, tax increment revenue bonds and business district revenue bonds. We can help businesses in working with municipalities as well as state agencies such as the Illinois Finance Authority. Financing packages can range from several million dollars to tens of millions of dollars.

Tax Increment Financing

If you are a company looking to build or rehabilitate an industrial, commercial or office facility, tax increment financing (TIF) – in addition to available tax incentives and tax abatement relief – may give you the ideal financial opportunity. TIF allows municipalities to create special districts and make public improvements to generate private-sector development. If governing authorities approve a TIF for your project, your tax base is frozen at the predevelopment level, and taxes derived from increases in assessed values on your development (the tax increment) go to retire the development bonds.

With our lawyers’ considerable experience working with municipal and state government authorities, we can help secure TIF approval for your project and negotiate the most favorable redevelopment agreement. Clients have relied on us for TIF assistance throughout the Midwest, including in Illinois, Wisconsin, Michigan, Indiana, Kentucky and Iowa. You get the benefit of our knowledge on how these states’ governments work, and our experience in crafting an advantageous package of incentives.

Know-How

Economic development financing comes down to the right balance of incentives – for government to make infrastructure improvements that will increase the tax base and for companies to commit to expanded operations when incentives are offered. Experienced bond counsel is essential to address all the political, financial and business factors involved. Ungaretti & Harris has the public finance and public policy know-how to achieve the objectives of either side of the deal and make these transactions happen.