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Committee advances HB2737 to allow alternative TIF financing using developer agreements
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Summary
The committee passed HB2737 favorably as amended to create an alternative financing mechanism for tax increment financing that would allow developers to use a city's bond rating and secure financing with property tax liens; committee adopted a technical amendment correcting a mistaken statutory cross-reference before passing the bill by voice vote.
The Committee on Commerce, Labor and Economic Development advanced House Bill 2737 favorably as amended after brief discussion and a technical correction.
Revisor Reimer described HB2737 as creating an alternative financing mechanism for tax increment financing (TIF): a taxpayer agreement permitting a developer to obtain upfront financing — potentially using a city’s bond rating — and to provide security via a property tax lien against the property. Reimer said the arrangement can broaden financing options for developers but noted the security instrument differs from typical city bonding structures.
During markup the committee corrected an erroneous statutory reference (the draft inadvertently cited the wrong statute related to sexually oriented businesses); the committee adopted the amendment to fix the reference. Representative Ward moved the bill favorably as amended; Representative Bohai (recorded as seconding) joined the motion and the bill passed by voice vote.
What’s next: HB2737 will move forward from committee as a favorable report; staff and members noted the bill creates a different security arrangement for TIF-financed projects and municipalities and developers should be aware of the lien-based protections described in the measure.
