At the Utah Inland Port Authority’s 2026 Congress of Ports, one of the most instructive sessions focused on a question many communities are actively trying to solve: how to finance infrastructure before growth arrives.
The breakout session, “Financing Your Future: Infrastructure Tools for Competitive Development,” brought together experts across the full financing lifecycle, including municipal advisory, bond counsel, and underwriting, to walk through how infrastructure projects move from concept to capital markets.
Moderated by Ariane Gibson, Deputy Director and CFO of UIPA, the panel featured Alex Buxton (Zions Bank Public Finance), Randall Larsen (Gilmore Bell), Benj Becker (Piper Sandler), and Sam Elder (DA Davidson). Together, they offered a practical look at how Utah communities are leveraging tools like Public Infrastructure Districts (PIDs), the Authority Infrastructure Bank (AIB), and property tax differential revenues to accelerate development.
Understanding the Core Tools
At the center of the discussion was tax increment financing, referred to in UIPA project areas as property tax differential. This approach allows future increases in property tax revenue, generated by new development, to be leveraged today to fund infrastructure.
As Gibson explained, many project areas begin with low taxable value. As development occurs, that incremental growth can be captured and used to support upfront infrastructure investment.
Panelists emphasized that this tool is often paired with others:
- Public Infrastructure Districts (PIDs): Special-purpose entities that can issue bonds backed by project-specific revenues, without placing liability on a city or county.
- Authority Infrastructure Bank (AIB): A state-supported loan fund used to catalyze early infrastructure, often filling financing gaps.
- Special assessment bonds and developer capital: Additional layers that help complete the overall funding structure.
Together, these tools form what panelists repeatedly referred to as the “capital stack,” the combination of funding sources required to move a project forward.
The Capital Stack: Where Deals Succeed or Fail
One of the clearest takeaways from the session was that successful projects are not financed by a single tool.
“Bonds rarely complete the capital stack on their own,” Larsen noted, emphasizing the importance of developer investment and local partnership.
Investors evaluating these projects are ultimately asking a straightforward question: “Will this project be completed, and will it generate the revenue needed to repay the bonds?”
To answer that, they look for:
- A clearly defined infrastructure plan
- Committed capital beyond bond proceeds
- Evidence of developer “skin in the game”
- Alignment between public entities and private partners
Without these elements, projects become difficult to finance, or carry higher costs.
What Investors Actually Look For
Panelists provided a candid look at how national investors evaluate Utah-based projects. Many of these investors are located outside the state and are assessing opportunities from a distance.
“These investors are in California, they’re in Chicago, they’re in New York… they’re looking at places on a map and saying, what’s being built here?,” Elder said.
That makes clarity and credibility critical.
Key factors include:
- Location and market demand: Does the site make sense for industrial or commercial growth?
- Sponsor strength: Who is leading the project, and do they have a track record of delivery?
- Absorption assumptions: Are projections for leasing or development realistic?
- Infrastructure readiness: Has meaningful progress already been made?
In many cases, investors are more willing to participate when projects show early traction, such as completed infrastructure, signed leases, or construction underway.
The Cost of Uncertainty
A recurring theme throughout the discussion was the outsized impact of uncertainty.
Legal challenges, unresolved entitlements, environmental risks, or unclear ownership structures can significantly weaken investor confidence, even if the underlying project is strong.
“Uncertainty carries a disproportionate penalty,” Larsen explained, noting that investors are quick to move on when risks cannot be clearly defined.
This has become especially important as market conditions have shifted. While earlier projects may have moved forward with more speculative assumptions, today’s environment requires tighter underwriting and clearer milestones before capital is deployed.
Why “Site Readiness” Now Includes Financing
Beyond physical infrastructure, panelists emphasized that financial readiness is now part of being “site ready.”
“Being site ready… also means having your financing well down the path,” Becker said.
Communities looking to attract development in the next three to five years should already be:
- Establishing project areas and tax increment structures
- Creating PIDs or other financing entities
- Engaging municipal advisors, bond counsel, and underwriters
- Planning infrastructure investments, even if reimbursement comes later
In some cases, this means taking on early risk, installing infrastructure ahead of confirmed tenants, with the expectation that future financing will reimburse those costs once development occurs.
Coordinating Across Jurisdictions
Another key factor is alignment between stakeholders.
Projects move more efficiently when:
- Cities and counties are aligned on land use and infrastructure
- Utilities (water, power, sewer) are secured early
- Developers and public entities share a clear vision
Delays in coordination can increase costs, reduce competitiveness, and slow projects at critical moments.
“The biggest killer of development is time,” Larsen noted, highlighting how delays can strain financing and reduce overall project viability.
Moving Forward
The session reinforced that infrastructure financing is not a one-size-fits-all process. Each project area is different, with unique market conditions, timelines, and stakeholder dynamics.
However, the underlying principles remain consistent:
- Plan early
- Build a complete capital stack
- Reduce uncertainty wherever possible
- Align public and private partners
- Treat financing as part of overall site readiness
For communities across Utah, these tools are increasingly shaping how infrastructure is delivered, and how quickly projects can move from concept to construction.
As Utah continues to grow, the ability to strategically finance infrastructure will remain a defining factor in which areas are able to compete, attract investment, and deliver long-term economic outcomes.
Published: 04/14/26
Author: Kaitlin Felsted