DENVER:Unlocking Future Land Value with Patient Capital

Denver Union Station

Unlocking Future Land Value with Patient Capital

A federal loan from a program known as the Transportation Infrastructure Finance and Innovation Act (TIFIA) facilitated the use of tax-increment financing revenue from property that was part of the Denver Union Station development. Without the long repayment term (up to 35 years) and flexible repayment schedule, including the ability to defer repayments for up to five years after project construction, it would have been difficult or expensive to borrow using future increases in land value as the source of repayment. Loans that feature longer repayment terms can allow time for new revenue sources to be established, value increases to occur, and new paradigms to be established.

Denver Union Station’s financing benefited from a TIFIA loan partially supported by revenue from increased property values.