Economic Development Incentives
NOTE: Arkansas Issue 3 is a proposed constitutional amendment on the November 3, 2026, general election ballot. If approved, Issue 3, would amend the Arkansas Constitution to authorize the General Assembly to provide for broader economic development programs, including the creation of economic development districts within cities, counties, or cooperative areas. The amendment would take effect January 1, 2027, and would require implementation of legislation. Project planning must distinguish between tools that may become available under Issue 3 and incentives, financing structures, and other programs authorized under law currently in effect.
Quattlebaum, Grooms & Tull advises developers, businesses, property owners, investors and lenders on economic development incentives and the legal and transactional issues involved in structuring and financing development projects. We bring together incentive planning, local government negotiations, development agreements and real estate financing, with an understanding of how each component affects the broader transaction.
Experience with Arkansas Economic Development Incentives
QGT’s experience with economic development incentives predates Issue 3. Our attorneys worked on the formation and development of early tax increment financing (TIF) districts in Jonesboro and North Little Rock and participated in legislation revising Arkansas’s TIF framework. Several of our attorneys are frequent lecturers to municipalities and civic groups regarding TIF districts.
Building on that experience, QGT attorneys played a key role in developing Senate Joint Resolution 15, the proposal known as Issue 3, and its proposed enabling legislation. We have invested thousands of hours making presentations to business, civic, and economic development organizations across the state regarding the amendment and its potential impact on economic development in Arkansas.
Our experience with Issue 3 complements our broader representation of developers, businesses, property owners, investors, and lenders in real estate development and commercial finance transactions. We understand both the economic development tools currently available under Arkansas law and the potential new structures contemplated by Issue 3, allowing us to help clients evaluate opportunities as the legal framework develops.
Our Services
Our services are tailored to the project, the client’s objectives, and the legal framework applicable to the transaction. They may include:
Project Evaluation and Planning
We help clients identify potential incentive structures, evaluate legal eligibility and approval requirements, and determine the information needed before approaching local officials. Working with clients and their financial advisers, we review proposed costs, revenue assumptions, project timing, and potential sources of funding to identify material issues early in the planning process.
Local Negotiations and Approvals
We assist clients in developing proposals and navigating discussions with cities, counties, and other participating governmental entities. Our work may include evaluating district boundaries, proposed revenue allocations, public benefits, project milestones and approval conditions, as well as public-records considerations and the timing and content of submissions to public bodies.
Incentive Structures and Financing
Where authorized, we help clients evaluate bond-financed, pay-as-you-go reimbursement and other incentive arrangements. We examine how payment timing, financing costs, performance conditions and projected revenues can impact the proposed transaction and coordinate with lenders, financial advisers, bond counsel and other professionals as appropriate. We distinguish estimated future payments from funds available at closing and from rights a lender may be willing to recognize.
Development Agreements and Lender Protections
We prepare and negotiate development and incentive agreements addressing payment sources, reimbursement procedures, performance requirements, reporting, default and termination. We also evaluate assignment rights, lender collateral rights, notice and cure provisions, refinancing, changes in ownership and project sales, while focusing on the client’s needs throughout development, financing, operation and eventual disposition.
Integrated with the Full Real Estate Transaction
Economic development incentives are often only one component of a larger real estate transaction. QGT’s broader real estate practice addresses acquisition, title, land use, construction, leasing and financing requirements, as well as projects involving federal and state tax credits. When multiple incentive or financing programs are under consideration, we coordinate with tax counsel, accountants, financial advisers and other professionals to evaluate compatibility, timing and continuing obligations.
Our real estate experience includes retail and shopping-center development, mixed-use projects, housing, industrial and distribution facilities, and redevelopment. The availability of a particular incentive depends on applicable law, local decisions and project-specific facts; a project category alone does not establish eligibility.
QGT can serve as primary transaction counsel or work alongside a client’s existing legal team on Arkansas economic development, incentive and development matters. Our related practices in real estate, land use, banking and business transactions provide additional resources to address the legal and transactional needs of a project from development and financing through completion and operation. Our involvement can range from an initial assessment of potential incentive opportunities to full-service legal representation throughout the development and financing process.
