There is one important feature embedded in the concept of TIF policy that can be borrowed on, and that's the ability to identify and secure debt against an asset in need of economic development. Instead of financing development by borrowing against the future - and therefore uncertain - tax revenues of the property, a city could borrow against the existing value of the designated area. This practice can benefit the city in two ways. First, an asset-backed loan offers a lower cost of financing than that of revenue bonds. Second, it could also provide the city with significant proceeds for redevelopment, since the supply of funds available to the government would likely exceed the current value of the land. That's because investors would make some estimation regarding the future value of the redeveloped land and a portion of that estimated value would likely be available for lending. Cities in Canada currently lack the authority to borrow against assets, and like any financing tool, it would have to be used with discretion. If a city misestimates the cost of development or its ability to repay the loan through future revenues, and then defaults, it risks handing over that asset to the bondholders.