Dallas is moving forward with plans to expand the Fort Worth Avenue Tax Increment Financing District to fund more housing and commercial development in North Oak Cliff and West Dallas. Dallas City Council members voted Wednesday to expand the district to include a planned Sprouts grocery store, so they can funnel the tax increment from that development into the underperforming TIF.
The Fort Worth Avenue TIF has only reached about 31 percent of its goals in creating residential units and just 19.8 percent of its goals in attracting new commercial and retail development, city officials said this week.
Council members discussed the proposed expansion during an Economic Development Committee meeting Monday and held a public hearing Wednesday, at which no residents offered any support or opposition.
Economic Development Assistant Director Kevin Spath said his office has been working on the expansion plan for over a year with District 1 Councilman Chad West and District 6 Councilman Omar Narvaez.
Fort Worth Avenue TIF District
The TIF district was created in 2007 and is now in year 16 of a 22-year term. A portion of the tax increment collected on new development within the zone can fund other projects within that area.
“The reason for the expansion is the TIF has not funded itself the way it was created to do,” Narvaez said during a Wednesday City Council meeting. “This will help fund the TIF with the balance that it really needs to get the infrastructure we need, especially on West Commerce Street.”
The current Fort Worth Avenue TIF District spans 448 acres; the expansion would extend it by 372 acres. The expansion area is west of Sylvan Avenue, south of Singleton Boulevard, and includes the Lake West Shopping Center and an area at Hampton Road and Fort Worth Avenue.
To date, Fort Worth Avenue TIF funds have supported four projects: Sylvan Thirty mixed-use apartments, The Villas of Western Heights affordable housing project, the Metro Paws Animal Hospital, and The Collective.
“Here’s the reason for this,” Spath said of the proposed expansion. “There are only six years remaining on the TIF District term. Only $13.2 million of [net present value] out of a total budget of $69.5 million has been generated and collected. The bottom line is the TIF District has been underperforming. It’s only achieved 19 percent of its planned budget.”
In addition to expanding the district, approved amendments to the Fort Worth Avenue TIF plan include:
- Provide funding capacity for programs addressing homeowner stabilization, home repair, and displacement mitigation
- Provide funding capacity to support district-wide initiatives including substantial public infrastructure and public facilities such as a fire station
- Provide funding capacity for redevelopment projects of vacant and underutilized properties
Expanding Fort Worth Avenue TIF to Include Sprouts
The expanded Fort Worth Avenue TIF District includes an area that will soon be home to a Sprouts grocery-anchored retail project. The development will bring in more tax increment to the TIF and ideally spur new development, Spath said.
The city’s Economic Development Department has been working with developer Vista Property Company on the project for about 18 months, and the City Council approved a rezoning of the property in March. The 4.3-acre site is near Hampton Road, Redmond Drive, and Fort Worth Avenue.
Councilman Narvaez pointed out that the Cypress Waters Fire Station was the first in Dallas to be built with TIF funds.
“We’ve got to do it again, and we desperately need a brand new fire station in this area as well,” he said. “The expansion gets us the full funding of the TIF.”
