Project Finance & Financial incentiveS

Pearlman & Miranda’s robust Project Finance and Financial Incentives Practice Group brings expertise and industry knowledge to a wide range of development projects. Our experienced team represents parties on all sides of transactions, including developers, redevelopers, governments (entitlement, finance provider, and regulator), nonprofits (incentive and tax structuring), and intermediaries (trustees). We have worked extensively with various lenders and equity providers. Our highly specialized transaction knowledge is critical for evaluating risk, particularly in developing, less mature marketplaces such as portions of our Renewable Energy Practice Group.

From securing site control to negotiating documents to successfully closing the deal, clients trust us to navigate each important aspect of an often lengthy, intricate process. Our in-house financial modeling capabilities assist our clients at critical decision points–including managing risk and meeting key milestones. 

Many of our projects involve P3 cooperation. While our firm’s business-friendly approach appreciates the difficulties faced by clients, we also understand how the government thinks and reacts. Much of our added value is in bringing all sides together to bridge gaps and close the deal. 

Seamlessly navigating transaction dynamics is vital to a project’s success–and the ability to steer extraordinarily large groups and subgroups toward the common goal is mission critical. As we move complex transactions through each significant phase, we are always mindful of “deal fatigue” that can evolve and threaten the attention span of participants. There is little reward for just getting close. With project revenue not generated until the latter stages of development, we focus on  helping clients move expeditiously to reach the targeted return on investment. 

Tax Exemption Expertise

Ever increasing real property taxes represent a significant expense for property owners and developers. Together with rising property acquisition and building costs, affordable housing requirements, infrastructure needs and possible environmental clean-up, the development of abandoned, underutilized, or blighted properties is an increasingly risky undertaking. One way municipalities can incentivize developers to invest in these properties is through the application of real property tax abatements or exemptions. 

Pearlman & Miranda is well versed in all aspects of tax abatements and exemptions and regularly counsels clients on the benefits, requirements, procedures, and nuances of each program. The goal of tax abatements and exemptions is to incentivize developers to make improvements to property that would not otherwise occur. It has become an essential tool in transforming challenged properties into productive use. A tax abatement or exemption can significantly reduce a developer’s property tax liability from that of traditional ad valorem real property taxes, which results in lower operating expenses and provides predictable, stable payments over a set period of time. This stability is often necessary to buoy a project’s net operating income and for the developer to obtain financing to construct the project. Municipalities recognizing that without this financial incentive these properties will continue to deteriorate, are willing to forego some tax revenue for a period of time in order to create additional investment and long term economic development.

For more information:

Call our office: (973) 707-3665 or 
Email* one of our Practice Group leads, Adam Peterson: apeterson@pearlmanmiranda.com or Patricia J. Ryou: pryou@pearlmanmiranda.com

*Please note that under applicable ethics laws, an attorney-client relationship with our firm is only established with a signed engagement letter.