Designing an Optimal Financing Strategy

What does designing an optimal financing strategy entail?

An optimal financing strategy is a tailored plan that maximizes financial benefits while minimizing tax liability and leveraging available incentives. This strategy may include using tax-exempt bonds and various state and local economic development programs to fund projects or support business growth.

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Which Florida laws and regulations apply to designing an optimal financing strategy?

The Florida Industrial Development Financing Act (Chapter 159, Part II, Florida Statutes) provides for the issuance of tax-exempt bonds for qualifying projects, such as manufacturing facilities, research parks, or affordable housing developments.

Florida’s Qualified Target Industry Tax Refund (QTI) program (Section 288.106, Florida Statutes) is an economic development incentive offering tax refunds to businesses that create high-wage jobs in targeted industries. In addition, the Florida Enterprise Zone Program (Chapter 290, Florida Statutes) also encourages economic development in designated areas by providing various state and local tax incentives to businesses that create jobs or invest in these zones.

What are common issues associated with attaining financing?

The following issues are among the most common:

• Misinterpretation of Tax-Exempt Financing Regulations: Clients may face litigation if they incorrectly apply tax-exempt financing rules or fail to comply with the associated regulations.
• Inaccurate Financial Projections: Overestimating or underestimating the potential returns from an economic development project can lead to disputes between clients and their investors or creditors.
• Improper Use of Economic Development Incentives: Clients may face litigation if they do not use the incentives for their intended purposes or fail to meet the eligibility criteria.
• Conflicts of Interest: Legal disputes can arise if the parties involved in the financing strategy have undisclosed conflicts of interest that compromise the integrity of the process.
• Breach of Contractual Obligations: Clients may be subject to litigation if they fail to fulfill the terms and conditions outlined in the financing agreements.

When a set of facts is appropriate to meet litigation requirements, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

Frequently Asked Questions

1. What types of tax-exempt financing options are available in Florida?

Various tax-exempt financing options are available in Florida, such as municipal bonds, industrial development bonds, and tax increment financing. Each option has unique requirements and benefits, and it is essential to consult legal counsel to determine the most suitable choice.

2. How can a business determine its eligibility for economic development incentives in Florida?

Eligibility for economic development incentives in Florida depends on factors such as the size and nature of the business, its location, and its impact on the local economy. Consult legal counsel and review Florida and federal statutes, regulations, and secondary sources to determine eligibility.

3. What are the potential risks and pitfalls associated with tax-exempt financing and economic development incentives?

Potential risks and pitfalls include non-compliance with applicable laws and regulations, changes in legislation affecting incentives, and disputes with government agencies or other stakeholders. Engaging experienced legal counsel and regularly reviewing the financing plan can help mitigate these risks.

Have more questions about governance or operations for your business?

Crucially, this overview of designing an optimal financing strategy does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.