Redevelopment and Urban Renewal

  • Overview
  • Attorneys
  • Publications

Kutak Rock’s national public finance attorneys have been at the forefront of creating and implementing unique financing structures and have successfully closed scores of traditional transactions for redevelopment and urban renewal projects in municipalities across the nation. Local governments in many states have attracted new development into declining areas or spurred new projects in undeveloped areas using various methods to create and share revenue that can be pledged to the payment of tax-exempt bonds. The financing of redevelopment and urban renewal projects often involves the collaboration of numerous taxing entities whose incremental tax revenues generated by a new or renewed project are dedicated to the project for a prescribed time period, with the goal of gaining a longer-term increase in tax revenues from the redevelopment project.

While incremental revenue typically comes from sales taxes and property taxes, we also have utilized lodging taxes, real estate transfer taxes and fees, various employment taxes, assessments and other revenues generated by a specific type of project for our clients who have statutory or local legal authority to do so. We have found that taxing districts often can be formed within the redevelopment area to increase the revenue stream produced by the project and to generate project-specific revenues with a life extending beyond the time frame established for revenue sharing. Kutak Rock’s national public finance lawyers have been instrumental in combining these elements to develop new financing models for funding redevelopment for dozens of clients.

Our firm has represented the full range of participants in bond or loan transactions to finance redevelopment, including issuers such as some of the largest and most active and innovative urban renewal authorities and redevelopment agencies, bondholders and bank lenders, bond insurers, underwriters, and developers. One of the challenges of redevelopment transactions is bringing together so many different transaction participants, as well as the affected governmental entities, to achieve a common goal. Because of our range of experience, we can identify the many issues and objectives that affect transaction participants and assist with solutions to complete the project.