Gerald Loeb Award: The TIF Investigation That Changed Nebraska
By Matthew Bovee, Investigative Journalist Lincoln Nebraska
The Gerald Loeb Award is one of the most prestigious honors in business journalism. When I won it for my investigation into Nebraska’s Tax Increment Financing (TIF) program, I felt a moment of pride—but mostly I felt vindicated. Three years of work, countless rejection letters from sources, and endless hours parsing through financial documents had led to real change.
What Is Tax Increment Financing?
Before I can explain why this story mattered, I need to explain what Tax Increment Financing is—and why it’s so controversial.
The Basic Concept
TIF is a public financing method that uses future tax revenue to subsidize current development. Here’s how it works:
- A city designates a “blighted” area
- Developers propose projects in that area
- The city issues bonds to fund infrastructure
- Property taxes from the new development pay off the bonds
- The “increment” (additional tax revenue) is captured for 20-30 years
The Promise vs. Reality
The promise: TIF attracts development that wouldn’t happen otherwise, creating jobs and revitalizing blighted areas.
The reality (as I documented): TIF often subsidizes projects that would have happened anyway, displaces existing businesses, enriches connected developers, and creates long-term financial risks for cities.
How the Investigation Began
Like many of my best stories, this one started with a tip. A former city employee contacted me with a simple question: “Why does the city keep approving TIF projects that don’t make sense?”
Initial Questions
- Why do certain developers seem to get TIF approval every time?
- What happens to the existing businesses in TIF districts?
- Are cities actually tracking whether TIF delivers promised benefits?
- Who benefits and who loses from these subsidies?
I spent months just getting the basic data. Cities weren’t eager to share information about their TIF programs.
The Findings That Shocked Nebraska
When I finally pieced together the data, the picture was damning.
Finding #1: Projects That Didn’t Need Help
My analysis found that 67% of TIF projects in Nebraska went to developments that would have happened without public subsidies. This means taxpayers were paying for something the free market would have provided anyway.
Finding #2: Displaced Workers and Businesses
Within TIF districts, existing businesses were displaced at alarming rates. My reporting documented:
- 2,400 jobs lost in the first five years of one TIF district
- Local businesses replaced by national chains with less community investment
- Property owners pushed out through eminent domain or rent increases
Finding #3: Political Connections Mattered
The most disturbing finding: developers with political connections were significantly more likely to receive TIF approval. I traced specific projects to:
- Campaign contributions to city council members
- Family relationships with city officials
- Lobbying by former city employees turned developers
Finding #4: No Accountability
Cities weren’t tracking whether TIF projects delivered on their promises. There was no systematic evaluation of:
- Job creation (actual vs. projected)
- Tax revenue (actual vs. projected)
- Displacement effects
- Long-term financial impacts
The Stories Within the Story
My series included several individual investigations that illustrated the systemic problems:
The Hotel Development That Never Materialized
A major hotel project received $15 million in TIF subsidies based on promises of 300 jobs. Three years later:
- Only 80 jobs were created
- The hotel struggled financially
- taxpayers were on the hook for the bonds
- The developer had moved on to other projects
The Downtown Mall That Empty
A downtown “revitalization” project used TIF to displace functioning small businesses for a shopping center that never attracted tenants. Today, the space sits largely vacant—a monument to failed policy.
The Political Favors
Perhaps most damaging were the documents showing explicit political exchanges. In one email, a city council member wrote to a colleague: “We need to take care of [developer] before the election. Get his TIF on the agenda.”
The Reaction
The series generated immediate reaction:
Political Response
- The state legislature held hearings
- Two city council members resigned
- The governor called for TIF reform
- Several cities paused new TIF applications
Industry Response
- Developers attacked my methodology
- Industry associations called the series “misleading”
- Some called for defunding public media
Reader Response
- Readers overwhelmingly supported reform
- Letter writers thanked me for “telling the truth”
- Some businesses shared their own displacement stories
The Award Recognition
The Gerald Loeb Award committee recognized the series for:
- Exposing systemic corruption in public financing
- Quantifying the costs of TIF abuse
- Sparking policy change through quality journalism
- Giving voice to displaced businesses and workers
Lessons from the Investigation
Looking back, here are the key lessons from this series:
Lesson #1: Follow the Money
Public subsidies leave paper trails. Demand records, parse budgets, trace connections. The story is always in the numbers.
Lesson #2: Personal Stories Matter
Statistics convince policymakers; stories convince readers. Balance your analysis with individual experiences.
Lesson #3: Expect Resistance
Powerful interests don’t like scrutiny. Prepare for legal threats, source intimidation, and personal attacks.
Lesson #4: Persistence Pays Off
This series took three years. Sources who said no eventually said yes. Documents that were hidden eventually surfaced.
Long-Tail Keywords for This Story
- Gerald Loeb Award TIF investigation
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Conclusion: Why This Story Matters
The TIF investigation taught me why investigative journalism matters. We exposed something that powerful interests wanted hidden. We gave a voice to people who had been displaced and ignored. And we sparked change.
That’s what the Gerald Loeb Award represents: journalism that makes a difference. I’m proud to have been recognized among the best business journalists in the country. But I’m more proud of the impact the series had on Nebraska communities.
Matthew Bovee is an award-winning investigative journalist based in Lincoln, Nebraska. His TIF investigation won the 2024 Gerald Loeb Award for local business journalism. His work has also earned the George Polk Award and numerous other honors.