PILLAR: Growing
AGENDA DATE: September 23, 2026
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
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SUBJECT
Title
Authorize an Interlocal Cooperation Agreement with Dallas Area Rapid Transit (“DART”) for DART contributions to tax increment reinvestment zones - Financing: No cost consideration to the City (see Fiscal Information)
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
DART and the City desire to work collaboratively to stimulate transit-oriented development, grow transit ridership, generate greater tax revenue, attract and retain businesses, and leverage DART’s transportation services and facilities as an economic development asset within tax increment financing (TIF) districts.
Beginning in 2024, DART began initial discussions with member cities on the concept of DART’s financial participation in city-created TIF districts. DART cannot currently participate in TIF districts as a taxing entity under Chapter 311 of the Texas Tax Code (“TIF Act”). However, the Interlocal Cooperation Agreement (ILA) approach does allow DART to contribute future sales tax revenue to a TIF district in nearly the same manner as other taxing units without legislative action.
In 2025, pursuant to Board Resolution 250059, the DART Board of Directors authorized the DART President & Chief Executive Officer to execute an agreement whereby DART desires to invest in the development or redevelopment of one or more tax increment reinvestment zones (TIF districts) created by DART member cities in furtherance of the shared goals identified above.
Subsequently, executive staff from DART member cities (including city managers, economic development staff, and city attorneys) provided input on a form document ILA that would provide a universal set of provisions for all DART member cities that choose to execute the ILA. In late 2025, a final form of the ILA was provided to the city managers of DART member cities for execution (see Exhibit A).
The City of Dallas and DART are authorized to enter into such ILA pursuant to Section 452.055(c) of the Texas Transportation Code and Chapter 791 of the Texas Government Code.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Economic Development Committee was briefed regarding this matter on August 3, 2026.
FISCAL INFORMATION
No cost consideration to the City. Any future request by the City for DART’s participation in a TIF district would be required to include the identification of the source(s) of the City’s match (which would include the City’s existing contribution to the TIF district).