Following a lively discussion Jan. 25, Dallas City Council members adopted an amended economic development policy and incentive framework in an effort to recruit and retain businesses.
The Economic Development Policy was drafted in 2021, with updates proposed late last year. The changes approved Wednesday communicate the city’s priority areas for development by establishing zones that correspond with state enterprise zones.
Former Dallas City Council member Jennifer Gates, who chaired the Economic Development Task Force, said the plan is not a panacea for economic development. Constant evaluation is crucial, she said.
“Most importantly, it uses economic development programs as a tool to execute the Racial Equity Plan and supports development in disadvantaged and disinvested communities,” Gates said. “The scope of the policy and incentive tools are now empowered to address disparities and provide opportunities to underserved areas of Dallas, particularly South Dallas.”
The task force worked alongside consultants with HR&A Advisors to develop the document.
An infrastructure investment fund is also included in the proposal, which “provides predictability of funding availability and gives assurance of the City’s intention to support infrastructure investment in historically distressed areas of the City,” said Assistant City Manager Majed Al-Ghafry in a Friday memo issued to council members Jan. 20. “This long-term fund will provide developers reasonable assurance that they can bridge the costs of infrastructure projects with private financing up front and be reimbursed through predictable future contributions to the Infrastructure Investment Fund.”
Focusing on Infrastructure
District 8 Councilman Tennell Atkins said there are infrastructure challenges in every quadrant of Dallas.
“How do you pay for it?” he asked. “Sometimes you’ve got to go to the voters and go through a bond package, and it’s 10 years before you get infrastructure. We’re in the 21st Century and [some areas] are still on septic tanks. That’s why developers do not come to some parts of the City of Dallas. We’ve got to have infrastructure. That’s the key to a great city.”
District 14 Councilman Paul Ridley said he wanted to avoid situations where infrastructure investment is made in a particular area but no developer comes forward to build there.
“How do we ensure that our investment in infrastructure will be protectively used by the private sector or to leverage the private sector?” he asked.
Economic Development Director Robin Bentley said the policy outlines infrastructure investments to be considered when outlined in the land use plan or other city initiatives.
“All of these awards will be almost certainly more than $1 million so they will be coming through the committee and the council,” Bentley said. “That’s the sort of research we’d do before bringing the item, why we think the infrastructure investment would attract [development]. That would be part of our due diligence.”
Bringing TIF Money Back to Marilla
Ridley suggested establishing an 80 percent contribution rate for the infrastructure investment program to allow for police, fire, code enforcement, street maintenance, and other city services within Tax Increment Finance districts.
“TIF districts are designed to incentivize development in a particular area,” Ridley said. “At the same time that they have been successful, there’s a cost of that success. I have some concern that if we devote 100 percent of the city’s tax increment after the expiration of the TIF districts to one particular program, we will not be allocating the funds necessary to service those new developments.”
District 12 Councilwoman Cara Mendeltsohn supported Ridley’s motion and said TIF districts were intended to create development and add to the general fund.
“We’ve taken away that second portion,” she said.
Ridley’s motion failed, and the council ultimately unanimously approved the 100 percent contribution.
“When we talk about equity, do you want 100 percent equity or 80 percent equity?” Atkins said. “We can come back to the city council anytime to change policy. Let us move forward with 100 percent.”
Staunch Supporters And Critics
All six speakers who signed up to address the City Council during the Jan. 25 public hearing urged approval of the policy.
Bob Mong, former Dallas Morning News editor and president of the University of North Texas Dallas, said he was pleased to see water and sewer lines installed to the west and southeast of the campus footprint, “setting the stage for much-needed high-quality development.”
“We believe the Economic Development Incentive Policy will support job growth, attract and retain businesses, and advance equity development,” Mong said.
Skyline Ranch owner Robert Pitre thanked the council for investing in infrastructure in South Dallas.
“This city has been very unfair to southern Dallas,” he said. “We need some guarantees that we will have infrastructure. The past city administration left us out. You cannot develop without infrastructure.”
Harrison Blair, president and CEO of the Dallas Black Chamber of Commerce, encouraged support of the Economic Development Policy.
“Our organization fully supports this Economic Development Incentive Policy that will enable the council to take a critical step forward in supporting job growth, creating new tax revenues, attracting and retaining new businesses, and expanding the City of Dallas’ tax base,” he said.
