STRATEGIC PRIORITY: Economic Development
AGENDA DATE: September 25, 2024
COUNCIL DISTRICT(S): 1, 2, 4, 6, 7
DEPARTMENT: Office of Economic Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize the (1) annual transfer of funding (subject to current and annual appropriations) to the City’s Department of Housing and Neighborhood Revitalization, over the term of each tax increment financing (TIF) district, to be deployed in the City’s homeowner stabilization, home repair, and displacement mitigation programs from: the Oak Cliff Gateway TIF District Fund in an estimated amount of $10,507,096.00 (Net Present Value (NPV) not to exceed $2,958,168.00) to the Equity-TIF-OCGD (Oak Cliff Gateway District) Fund, from the Fort Worth Avenue TIF District Fund in an estimated amount of $16,070,868.00 (NPV not to exceed $6,315,196.00) to the Equity-TIF-FWAD (Fort Worth Avenue District) Fund, and from the Deep Ellum TIF District Fund in an estimated amount of $13,445,178.00 (NPV not to exceed $6,672,064.00) to the Equity-TIF-DED (Deep Ellum District) Fund; and (2) establishment of appropriations in an estimated amount of $10,507,096.00 (NPV not to exceed $2,958,168.00) in the Equity-TIF-OCGD Fund, in an estimated amount of $16,070,868.00 (NPV not to exceed $6,315,196.00) in the Equity-TIF-FWAD Fund, and in an estimated amount of $13,445,178.00 (NPV not to exceed $6,672,064.00) in the Equity-TIF-DED Fund - Not to exceed $40,023,142.00 - Financing: Equity-TIF-OCGD Fund ($10,507,096.00) (NPV not to exceed $2,958,168.00), Equity-TIF-FWAD Fund ($16,070,868.00) (NPV not to exceed $6,315,196.00), and Equity-TIF-DED Fund ($13,445,178.00) (NPV not to exceed $6,672,064.00)
Body
BACKGROUND
This City Council action authorizes the Chief Financial Officer to annually transfer a portion of tax increment funding from the Oak Cliff Gateway TIF District, Fort Worth Avenue TIF District, and Deep Ellum TIF District to the City’s Department of Housing and Neighborhood Revitalization (HOU) to be deployed in the City’s homeowner stabilization, home repair, and displacement mitigation programs in transitioning neighborhoods in and adjacent to the Oak Cliff Gateway TIF District, Fort Worth Avenue TIF District, and Deep Ellum TIF District.
Over the last year, the Office of Economic Development (OED) collaborated with HOU, with input from the respective TIF district boards of directors, to determine the most effective approach for the use of these funds and the specific funding area geographies.
To make these funding transfers possible, the City Council authorized amendments to the Oak Cliff Gateway TIF District Project Plan and Reinvestment Zone Financing Plan on November 9, 2022 (Resolution No. 22-1719; Ordinance No. 32354), the Fort Worth Avenue TIF District Project Plan and Reinvestment Zone Financing Plan on November 8, 2023 (Resolution No. 23-1598; Ordinance No. 32602), and the Deep Ellum TIF District Project Plan and Reinvestment Zone Financing Plan on February 28, 2024 Resolution No. 24-0397; Ordinance No. 32670). Each of the authorized amendments created budget capacity in each TIF district project plan and reinvestment zone financing plan to fund programs benefitting eligible homeowners and residents of neighborhoods in and adjacent to each of these three TIF districts.
For the current fiscal year 2024, the actual transfer amounts are to be:
• $2,546,726.00 from Oak Cliff Gateway TIF District
• $912,287.00 from Fort Worth Avenue TIF District
• $2,875,875.00 from Deep Ellum TIF District
The total estimated budget capacity dedicated to homeowner stabilization, home repair, and displacement mitigation programs over the remaining term of each TIF district is:
• Oak Cliff Gateway TIF District: estimated $10,507,096.00 (not to exceed $2,958,168.00 NPV)
• Fort Worth Avenue TIF District: estimated $16,070,868.00 (not to exceed $6,315,196.00 NPV)
• Deep Ellum TIF District: estimated $13,445,178.00 (not to exceed $6,672,064.00 NPV)
The transferred TIF district funds will provide additional funding support to the City’s Housing & Community Development Department for implementation of the Dallas Housing Policy 2033 (DHP33) and the Dallas Housing Resource Catalog, which includes the Dallas Homebuyer Assistance Program (DHAP) and the Home Improvement and Preservation Program (HIPP) adopted by City Council on April 13, 2023.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 11, 1992, the City Council authorized the establishment of Tax Increment Reinvestment Zone Number Three, the Oak Cliff Gateway TIF District, by Resolution No. 92-3946; Ordinance No. 21466, as amended.
On June 22, 2005, the City Council authorized the establishment of Tax Increment Reinvestment Zone Number Twelve, the Deep Ellum TIF District, by Resolution No. 05-1971; Ordinance No. 26043, as amended.
On June 13, 2007, the City Council authorized the establishment of Tax Increment Reinvestment Zone Number Fifteen, the Fort Worth Avenue TIF District, by Resolution No. 07-1805; Ordinance No. 26798, as amended.
On April 13, 2023, the City Council adopted the Dallas Housing Policy 2033 (“DHP33”), by Resolution No. 23-0443, and the Dallas Housing Resource Catalog (“Catalog”) detailing programs to implement DHP33, including Homeowner Programs to support neighborhood stabilization, by Resolution No. 23-0444.
On September 26, 2022, the Oak Cliff Gateway TIF District Board of Directors unanimously passed a motion adopting and recommending City Council approval of amendments to the Oak Cliff Gateway TIF District Project Plan and Reinvestment Zone Financing Plan which included the creation of a new budget category for homeowner stabilization, home repair, and displacement mitigation and increased the budget capacity of the Oak Cliff Gateway Sub-District and the Bishop/Jefferson Sub-District to annually transfer a portion of future tax increment to the budget line item for homeowner stabilization, home repair, and displacement mitigation programs.
On November 9, 2022, the City Council held a public hearing to receive comments on proposed amendments to the Oak Cliff Gateway TIF District Project Plan and Reinvestment Zone Financing Plan as recommended by the Oak Cliff Gateway TIF District Board of Directors; and, at the close of the public hearing, approved an ordinance amending Ordinance No. 21466 previously approved on November 11, 1992, and Ordinance No. 23033 previously approved on February 12, 1997, as amended, to reflect these amendments by Resolution No. 22-1719, Ordinance No. 32354, and such amendments specifically included creation of a new budget category for the Oak Cliff Gateway TIF District Project Plan and Reinvestment Zone Financing Plan for homeowner stabilization, home repair, and displacement mitigation.
On December 12, 2022, the Oak Cliff Gateway TIF District Board of Directors unanimously approved an amended Oak Cliff Gateway TIF District Increment Allocation Policy which provides for the dedication of a portion of the annual increment for homeowner stabilization, home repair, and displacement mitigation in accordance with the amended Oak Cliff Gateway TIF District Project Plan and Reinvestment Zone Financing Plan.
On October 10, 2023, the Fort Worth Avenue TIF District Board of Directors unanimously recommended City Council approval of proposed amendments to the Fort Worth Avenue TIF District Project Plan and Reinvestment Zone Financing Plan which included adding homeowner stabilization, home repair, and displacement mitigation to the Affordable Housing budget category and approved an amended and restated Fort Worth Avenue TIF District Increment Allocation Policy which provides for the dedication of a portion of the Fort Worth Avenue TIF District annual increment for homeowner stabilization, home repair, and displacement mitigation in accordance with the amended Fort Worth Avenue TIF District Project Plan and Reinvestment Zone Financing Plan.
On November 8, 2023, the City Council held a public hearing to receive comments on proposed amendments to the Fort Worth Avenue TIF District Project Plan and Reinvestment Zone Financing Plan to: (1) increase the geographic area of the Fort Worth Avenue TIF District by approximately 372 acres, extending west along West Commerce Street and Singleton Boulevard, to west of North Hampton Road, primarily to Manila Road, and incorporating property north of Fort Worth Avenue and south of Remond Drive, east of North Hampton Road, (2) maintain 70% City participation in the Fort Worth Avenue TIF District through the remaining term of the Fort Worth Avenue TIF District, (3) redefine and reallocate budget categories, and (4) make corresponding modifications to the Fort Worth Avenue TIF District’s boundary and Fort Worth Avenue TIF District Project Plan and Reinvestment Zone Financing Plan; and, at the close of the public hearing, approved an ordinance amending Ordinance No. 26798, previously approved on June 13, 2007, and Ordinance No. 27129, previously approved on March 26, 2008, as amended, to reflect these amendments by Resolution No. 23-1598; Ordinance No. 32602 and such amendments specifically added homeowner stabilization, home repair, and displacement mitigation to the Affordable Housing budget category.
On December 5, 2023, the Deep Ellum TIF District Board of Directors reviewed and unanimously recommended the City Council’s approval of proposed amendments to the Deep Ellum TIF District Project Plan and Reinvestment Zone Financing Plan which included the creation of new affordable housing budget categories to (1) support Deep Ellum TIF District mixed-income housing guidelines and (2) annually transfer Deep Ellum TIF District increment to HOU to support homeowner stabilization, home repair, homebuyer assistance, and displacement mitigation programs within the Grand Park South area, and approved an amended and restated Deep Ellum TIF District Increment Allocation Policy which provides for the dedication of a portion of the Deep Ellum TIF District annual increment for homeowner stabilization, home repair, and displacement mitigation in accordance with the amended Deep Ellum TIF District Project Plan and Reinvestment Zone Financing Plan.
On February 28, 2024, the City Council held a public hearing to receive comments on the proposed amendments to the Deep Ellum TIF District Project Plan and Reinvestment Zone Financing Plan to: (1) increase the total budget for the Deep Ellum TIF District from $29,992,935.00 net present value (approximately $57,641,077.00 in total dollars) to $46,408,080.00 net present value (approximately $93,519,023.00 in total dollars), (2) redefine and reallocate budget categories, and (3) make corresponding modifications to the Deep Ellum TIF District Project Plan and Reinvestment Zone; and, at the close of the public hearing, approved an ordinance amending Ordinance No. 26043 previously approved on June 22, 2005, and Ordinance No. 26304 previously approved on April 12, 2006, as amended, to reflect these amendments by Resolution No. 24-0397, Ordinance No. 32670, and such amendment specifically provided for a budget category for homeowner stabilization, home repair, and displacement mitigation.
The Economic Development Committee was briefed by memorandum regarding this matter on September 3, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13270915&GUID=D08D736A-588E-4402-8050-EA7B5C7F5F41>
FISCAL INFORMATION
|
Fund |
FY 2024 |
FY 2025 |
Future Years |
|
Equity-TIF-OCGD (Oak Cliff Gateway District) Fund |
$2,546,726.26 |
$1,452,555.00 |
$ 6,507,814.74 |
|
Equity-TIF-FWAD (Fort Worth Avenue District) Fund |
$ 912,286.98 |
$ 592,611.88 |
$14,565,969.14 |
|
Equity-TIF-DED (Deep Ellum District) Fund |
$2,875,875.37 |
$1,594,829.48 |
$ 8,974,473.15 |
|
Total |
$6,334,888.61 |
$3,639,996.36 |
$30,048,257.03 |
MAP
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