STRATEGIC PRIORITY: Growing
AGENDA DATE: August 13, 2025
COUNCIL DISTRICT(S): 9, 14
DEPARTMENT: Office of Economic Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize a public hearing to be held on August 27, 2025, to receive comments concerning: (1) the proposed levy of assessment for the University Crossing Public Improvement District (the “District”) in accordance with Chapter 372, Texas Local Government Code, for the purpose of providing supplemental public services to be funded by special assessments on property in the District; and, at the close of the public hearing (2) consider approval of an ordinance; (a) levying a special assessment on property in the District for services and improvements to be provided during 2026; (b) establishing charges and liens against the property in the District and against the property owners thereof; (c) providing for the collection of the 2025 assessment; (d) requiring City staff to, not later than seven days after the City Council’s approval of the ordinance and Service Plan, file a copy of the approved Service Plan with the Dallas County Clerk; and (e) providing an effective date - Financing: This action has no cost consideration to the City (see Fiscal Information)
Body
BACKGROUND
Annually, the City Council calls and holds a public hearing to consider the proposed assessment for property in the District and authorizes the Service Plan for the District. This action calls for a public hearing to be held on August 27, 2025 during which any owner of property located within the District may speak for or against the District’s annual Service Plan and assessment, as required by the Public Improvement District Assessment Act (the “Act”), Chapter 372 of the Texas Local Government Code. After hearing and passing on objections, the City Council may consider an ordinance levying a special assessment on District property.
As the entity with which the City contracts to manage the District, University Crossing Improvement District Corporation (UCIDC) provided City staff with the District’s proposed 2026 Service Plan and 2025 Assessment Plan for review. Staff found the services and improvements to be advisable and recommends approval subject to the public hearing on August 27, 2025.
The proposed assessment values provided herein are preliminary. The final Service Plan presented to the City Council on August 27, 2025 will reflect the 2025 Dallas Central Appraisal District (DCAD) certified values. The adopted Service Plan will be filed with the Dallas County Clerk within seven days after the City Council’s approval pursuant to the Act.
Dallas County will collect the District’s assessments, retain a collection fee ($2.90 per account and subject to change), and transfer the remaining assessments to the City. The City will then disburse assessments to the District management entity at a frequency outlined in the District’s management contract.
The District Service Plan consists of:
(a) Nature of the Services and Improvements. The purpose of the District is to supplement and enhance services provided within the District, but not to replace or supplant existing City services provided within the District. The general nature of the proposed services and improvements to be performed by the District includes, but is not limited to: security and safety enhancements (police safety patrols for the area, safety awareness, wayfinding signage, pedestrian lighting, etc.); public improvements (landscaping, pocket parks, public art/murals, sidewalks, planters, waste disposal, and clean area programs); services to promote the area among owners; and related expenses incurred in establishing, administering, and operating the District as authorized by the Act.
(b) Estimated Cost of the Services and Improvements. During the next five-year period, the estimated annual cost of the improvements and services provided by the District is expected to range from a low of $1,146,982.00 in 2027 to a high of $2,349,522.00 in 2026. The total estimated net assessments to be collected during the next five-year period is approximately $6,058,768.00. The District shall incur no bonded indebtedness.
(c) Boundaries. The boundaries of the District are located wholly within the City of Dallas, Dallas County, Texas. The boundaries of the District are attached to the resolution as shown in Exhibit A.
(d) Method of Assessment. The assessment shall apportion the costs each year among the property owners on the basis of special benefits accruing to the property. The proposed method of assessment, which may specify included or excluded classes of assessable property, shall be assessed according to the value of the real property and real property improvements as determined by DCAD. The net assessment amount for the 2026 Service Plan year is proposed to be $1,123,022.00. This amount is approximately equal to $0.10 per $100.00 valuation. Once levied, this assessment rate shall not increase during the 2026 Service Plan year. Future annual assessment rates, however, may be increased up to a maximum of $0.15 per $100.00 valuation subject to appropriations set forth in the petition that created the District. Any future increase in the assessment rate would also be subject to a public hearing and approval by the City Council.
The real property of jurisdictions and entities that have obtained an exemption from the City of Dallas real property taxes pursuant to the Texas Property Code (except under the provisions of Sections 11.24 and 11.28 of the Texas Tax Code) will not be subject to an assessment on that portion of the assessed value of the property exempt from City real property taxes.
Southern Methodist University ("SMU') has agreed to participate in the District by contract with the UCPID, Inc. through special assessment based on all taxable and tax-exempt real property owned by SMU or SMU affiliates within the District. The contract specifies SMU's level of assessment as well as possible offset of SMU assessment for new landscaping overpass improvements to the entryway areas within the Dallas City limits. Payment of assessments by other exempt jurisdictions and entities must be established by contract.
(e) Apportionment of costs between the District and the Municipality as a Whole. The assessment is levied on the real property and real property improvements in the District according to the value of such property. Levying the assessment for the services and improvements based on the appraised value of the property results in the apportionment of the costs on the basis of special benefits accruing to the property. City rights-of-way (ROW), railroad ROW, City parks and cemeteries are not specially benefited and therefore are not subject to assessment. The City of Dallas is not responsible for payment of assessment against exempt City property in the District.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 12, 2013, the City Council authorized the creation of the University Crossing Public Improvement District (the “District”) for a period of seven years and designated UCIDC, as the management entity for the District by Resolution No. 13-1016.
On September 12, 2018, the City Council authorized an amended and restated management contract with UCIDC, the non-profit corporation designated as the management entity for the District to reflect changes in the process for disbursement of assessment revenue, authorizing the City to disburse assessments to UCIDC, and to address other amendments to the agreement by Resolution No. 18-1324.
On May 27, 2020, the City Council authorized the renewal of the District, for a period of seven years and designated UCIDC, as the management entity for the District by Resolution No. 20-0870.
On September 9, 2020, the City Council authorized an ordinance approving and adopting the District’s final 2021 Service Plan, the 2020 Assessment Plan, and the 2020 Assessment Roll by Resolution No. 20-1368 and Ordinance No. 31644.
On August 25, 2021, the City Council authorized an ordinance approving and adopting the District’s final 2022 Service Plan, the 2021 Assessment Plan, and the 2021 Assessment Roll by Resolution No. 21-1425 and Ordinance No. 31988.
On August 24, 2022, the City Council authorized an ordinance approving and adopting the District’s final 2023 Service Plan, the 2022 Assessment Plan, and the 2022 Assessment Roll by Resolution No. 22-1268 and Ordinance No. 32288.
On August 23, 2023, the City Council authorized an ordinance approving and adopting the District’s final 2024 Service Plan, the 2023 Assessment Plan, and the 2023 Assessment Roll by Resolution No. 23-1186 and Ordinance No. 32538.
On August 28, 2024, the City Council authorized an ordinance approving and adopting the District’s final 2025 Service Plan, the 2024 Assessment Plan, and the 2024 Assessment Roll by Resolution No. 24-1245 and Ordinance No. 32841.
The City Council was briefed by memorandum regarding this matter on August 8, 2025. <https://dallascityhall.com/government/citymanager/Documents/FY24-25%20Memos/Upcoming%20Public%20Improvement%20District%20(PID)%20Agenda%20Itemson%20August%2013,%202025%20Call%20for%20Public%20Hearing%20for%20PIDs%20to%20Set%20Annual%20Assessment%20Rates%20for%202025%20and%20Adopt%202026%20Service%20Plan.pdf>
FISCAL INFORMATION
This action has no cost consideration to the City. District assessment collections remitted from the Dallas County Tax Office to the City are deposited in a special revenue fund for disbursement by the City to the District’s management entity on a monthly basis. Based on the District’s proposed 2026 Service Plan budget, fund disbursements for the upcoming year are estimated at $1,123,022.00. For District property owners, the proposed assessment amount is approximately equal to $0.10 per $100.00 of appraised value as determined by DCAD (i.e., property owners within the boundaries of the District pay the assessment and after disbursement by the City, the funds are managed pursuant to the approved Service Plan and a management contract with the City by the District).