The City of Ralston provides two development incentives - Tax Increment Financing (TIF) and Property Assessed Clean Energy Program (PACE).

What is TIF?

TIF, or Tax Increment Financing, is an economic development tool that helps make certain redevelopment projects financially possible.

Redeveloping an existing property can cost more than building on an empty piece of land (greenfield development). Older properties may need buildings demolished or repaired, contaminated soil cleaned up, or water, sewer, streets, and other infrastructure improved. These extra costs can sometimes prevent a project from moving forward.

TIF can help pay for certain eligible redevelopment costs by using a portion of the new property tax revenue created by the development itself.

How Does TIF Work?

TIF does not reduce the developer's property taxes. The property owner continues to pay the full property tax bill based on the property's assessed value. Instead, TIF separates the taxes generated by the property's existing value from the additional taxes generated by the increase in value resulting from the redevelopment.

For example, if a commercial property is worth $1 million before redevelopment, the property owner will pay about $20,000 in taxes to the County. The County the redirects that to school districts, municipalities, and other entities. The City of Ralston will receive about $7,000 of the $20,000.

If the property owner then built a new building using TIF resulting in the property being now worth $3 million dollars, the property owner pays the County about $60,000 per year in taxes. However, during the TIF period, instead of the County keeping the full $60,000, the increment ($40,000) would be directed to the developer's lender.

Once the TIF period is complete, the County would keep the full $60,000 and redirect as required, in which the City would now receive about $21,000.

Who Qualifies for TIF?

TIF is not available to every project or developer.

In Nebraska, a project must generally be located in an area that has been declared blighted and substandard. The developer must also show that the project would not be financially feasible without TIF assistance, this is commonly referred to as the 'but-for' test. The project must go through a public review and approval process and must be consistent with the City's plans and goals for the area.

Although the State of Nebraska implemented a 'Micro TIF' program for smaller projects, property owners in Douglas County are not eligible. For more information on the Micro Tif program, see: https://opportunity.nebraska.gov/micro-tif/

What are the Benefits of TIF?

The goal of TIF is simple; help make redevelopment happen when it otherwise would not.

For the developer, TIF can help cover extraordinary costs that make a project financially difficult.

For the community, TIF can help transform underused or blighted property into new homes, businesses, and investments. Once the TIF obligation ends, the entire increased property value becomes part of the regular tax base.

TIF in Ralston

Ralston is currently in the process of updating its Blight Study, scheduled to be approved by Council in early 2027. At that point, most commercial and industrial properties along 72nd, 84th, L, Harrison, and Serum Streets will be eligible in addition to many properties downtown.

For properties that currently qualify for TIF, please see the City's 2023 blight study.

For more questions and the application process, please contact the City's Economic Development Director, Kristin Broyhill at kbroyhill@cityofralston.com.

What is PACE?

PACE, or the Property Assessed Clean Energy program, is a financing tool that may be useful for commercial and multifamily new construction and significant improvements. PACE was established by a Nebraska Statute (Neb. Rev. Stat. §§ 13-3201–13-3211) that allows cities to create Clean Energy Districts.

PACE is not a public loan or grant. It is a private financing option that allows property owners to finance eligible improvements through a private lender.

The loan is secured through a PACE assessment (property lien) placed on the property by the County. The municipality provides the legal and administrative structure needed to establish and administer the PACE program.

PACE financing can only be used for eligible improvements related to energy efficiency and/or clean energy.

How Does PACE Work?

Property owners apply through the City of Ralston for PACE financing and obtain a PACE-eligible loan from a participating bank or other PACE lender.

Once the project and financing are approved, the property owner enters into an agreement with the City. The City then works with the Douglas County Treasurer to place a PACE assessment (lien) on the property. This assessment allows the property owner to repay the PACE loan through an assessment collected with the property taxes.

The property owner does not pay additional property taxes because of the PACE financing. Instead, a portion of the property tax payment associated with the improvements is used to make the PACE loan payments until the loan is fully repaid.

Once the PACE loan is paid off, those payments end, and the property owner's full property tax payment is distributed through the normal tax process. A portion of the applicable tax revenue is then directed to the City as required under the PACE program.

Demolition of AAA Warehouses for Development

Who Qualifies for PACE?

PACE is available for Ralston property owners who are building, redeveloping or significantly renovating their property to include energy efficient and/or renewable energy features.

The owner must secure PACE-approved financing, apply with the City, and enter a contract with the City. There are several lenders in the area, REDC encourages developers to do their due diligence in finding PACE Financing through different banks and equity firms.

Eligible projects include energy efficient insulation, windows/doors, HVAC, renewable energy systems, and water conservation efforts, among others.

PACE in Ralston

Ralston approved its PACE program through Ralston Ordinance No. 1274 in 2021.

In Ralston, the 'District' is inclusive of the City as a whole.

Eligible properties can be approved for both TIF and PACE, but this desire must be communicated to the City upon application of either program.

The City's PACE Program Manual can be downloaded here.

The City's PACE Application can be downloaded here.

The City's PACE Contract can be downloaded here.

For questions, please contact the Economic Development Director at KBroyhill@CityofRalston.com.

Ralston Economic Development Corporation

Creating Economic Opportunities