STRATEGIC PRIORITY: Growing
AGENDA DATE: June 11, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Office of Economic Development
EXECUTIVE: Robin Bentley
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SUBJECT
Title
Authorize an amendment to the City’s Public Improvement District (“PID”) Policy, included as an exhibit within the City’s Economic Development Incentive Policy, to align the petition approval thresholds required for creation and renewal of contiguous PIDs in the City of Dallas with Chapter 372 of the Texas Local Government Code (the “State PID Act”) - Financing: No cost consideration to the City
Body
BACKGROUND
The State PID Act requires signed petitions from property owners representing at least 50.0% of the appraised value of real property liable for assessment and at least 50% of the land area within the proposed district or 50.0% of all record owners of real property liable for assessment.
The City’s PID Policy (as included in the City’s Economic Development Incentive Policy) currently requires:
• For commercial or mixed-use PIDs: at least 60.0% of the of the appraised value of real property liable for assessment and at least 60.0% of the land area or 60% of the record owners of real property liable for assessment.
• For single-family residential PIDs (defined in the City’s PID Policy as areas with a minimum of 30% of land area dedicated to detached single-family housing): at least 66.7% of the appraised value of real property liable for assessment and at least 66.7% of the land area or 66.7% of the record owners of real property liable for assessment.
The higher petition approval threshold requirements in the City’s PID Policy have been in place since 2005 when the City’s PID Policy was originally adopted. At that time, the intent of the higher petition approval threshold requirement was to promote broad neighborhood support among impacted property owners for the creation of new PIDs.
Based on public feedback received from several City Council Members during the April 23, 2025 City Council meeting and direction received from the Economic Development Committee on June 2, 2025, City staff is recommending aligning the City’s PID petition approval threshold requirements with the State PID Act’s petition approval threshold requirements. Cited benefits for reducing the City’s PID petition approval thresholds include:
• aligns Dallas policy with State PID Act, offering clarity and consistency;
• streamlines the process for creating new PIDs in emerging or underserved areas;
• lowers barriers for PIDs with fragmented ownership or high absentee/non-local/out-of-state property ownership rates; and
• supports the City’s efforts to create more inclusive, responsive, and accessible economic development tools.
It should be noted that amendment of the PID Policy will not impact the petition approval threshold requirement specifically for the Dallas Tourism Public Improvement District (“DTPID”) which is already aligned with the State PID Act.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 25, 2023, the City Council held a public hearing and, at the close of the public hearing, adopted the City of Dallas Economic Development Incentive Policy for the period of January 1, 2023, through December 31, 2024, by Resolution No. 23-0220.
On March 27, 2024, the City Council authorized amendments to the City of Dallas Economic Development Incentive Policy for the period January 1, 2023, through December 31, 2024, by Resolution No. 24-0435.
On January 8, 2025, the City Council held a public hearing and, at the close of the public hearing, authorized adoption of an amended City of Dallas Economic Development Incentive Policy for the period of January 1, 2025, through December 31, 2026, by Resolution No. 25-0162.
The Economic Development Committee was briefed by memorandum regarding this matter on June 2, 2025. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=14256977&GUID=3678B023-368A-4341-A33C-1CA933A772BD>
FISCAL INFORMATION
No cost consideration to the City.