Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/853369
28 S C T / A U G U S T 2 0 1 7 he improving U.S. economy is creating more opportunities for developers and retailers to move forward on projects funded in part by the public sector — but nobody says the process is getting easier. Forming public-private partnerships that hinge on in- centives such as tax increment financing is an art and a science unto itself, says Katie Kramer, vice president of the Council of Development Finance Agencies, which has worked with ICSC for nearly a decade to promote successful public-private collaboration. Tax increment financing, started in California in 1952 and now an option in every state except Arizona, is widely used to fund retail, mixed-use and other development and infrastructure projects, typically by capturing property-tax increases or other incremental taxes. To bolster the odds of winning TIF incentives, developers and retailers need to understand the complexities of secur- ing buy-in from both public officials and private stakehold- ers, experts say. They must thoroughly understand state and local regulations related to TIF bonds or other financial tools in play, and, depending on the size of the project, may also have to work with local officials to establish a special-assess- ment district. In these, businesses agree to pool dedicated taxes to fund various improvements, such as outdoor-seating areas, green spaces, bike trails or performing-arts centers. Though public-private partnerships can bring tremen- dous benefits, executing them properly requires a high level of financial acumen and due diligence, along with the need for careful documentation, monitoring and regulatory com- pliance at every step of the process, Kramer says. Specialized consultants often tackle the most complex analyses and logistics in TIF arrangements, but all the parties need a thor- ough understanding of the proven best practices related to these incentives, she says. This is why ICSC works with CDFA to produce a suite of educational resources geared toward helping members and nonmembers alike to navigate TIF complexities, says Cynthia Stewart, ICSC's vice president of community development. CDFA represents hundreds of public, private and nonprofit development entities, and its members include public officials, bankers, underwriters, attorneys and financial advisers. "When it comes to knowing the ins and outs of TIF, we at ICSC wanted the top people, the very best, to be our partners in producing these educational resources for our members," Stewart said. One recent effort to tackle the issue comes in the form of the second edition of the Tax Increment Finance Best Practices Reference Guide . This 382-page book, published this year, is in- tended to be a comprehensive overview of the TIF world, with For the public