STRATEGIC PRIORITY: Growing
AGENDA DATE: May 14, 2025
COUNCIL DISTRICT(S): 2, 14
DEPARTMENT: Office of Economic Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
A public hearing to receive comments on proposed amendments to the Project Plan and Reinvestment Zone Financing Plan (“Plan”) for Tax Increment Reinvestment Zone Number Eleven, the Downtown Connection Tax Increment Financing (“TIF”) District (“Zone”) to: (1) add a provision to the Plan for a direct sale of approximately 1.09 acres of City-owned property addressed as 660 N. Griffin Street including the existing Fire Station No. 18 in as-is condition and at fair market value in accordance with Chapter 311 of the Texas Tax Code and Chapter 272 of the Texas Local Government Code; (2) reprogram $6,980,602.00 in net present value (NPV) 2006 dollars (approximately $17,561,516.00 in total dollars) from the Redevelopment of Vacant/Underutilized Downtown Buildings, Underdeveloped Parcels, Surface Parking Lots line item to the Public Safety Building line item in the Downtown Connection Sub-district budget to support the relocation and construction of a new Fire Station No. 18 facility in the Zone; and (3) make corresponding modifications to the Zone’s Plan; and, at the close of the public hearing, consider an ordinance amending Ordinance No. 26096, previously approved on August 29, 2005, as amended, to reflect these amendments - Financing: No cost consideration to the City
Body
BACKGROUND
In 2005, the Downtown Connection TIF District was initiated by property owner petition and created by City Council to serve as a long-term funding tool for public capital investment in the core of downtown and to support redevelopment of vacant/historic buildings and underutilized/vacant surface parking lots.
On June 22, 2022, the City Council approved an amendment of the Zone’s Plan by Ordinance No. 32249 to support the significant investment in public infrastructure, such as roadways, water, sewer, storm drainage, sidewalks, lighting, mixed-income housing, etc. required to facilitate high-density redevelopment of vacant and underutilized parcels and buildings in the TIF District. A key component of the June 2022 Plan amendment was the addition of a Public Safety Building line item to the budget of each sub-district in the Zone. Funding capacity in each sub-district’s budget was allocated to this line item to support the replacement of two antiquated Dallas Fire Rescue stations downtown, Fire Station No. 18 in the Downtown Connection Sub-district and Fire Station No. 4 in the Newpark Sub-district.
Fire Station No. 18 is addressed as 660 N. Griffin Street and is approximately 12,330 square feet. The station was constructed in 1975, and now the facility is functionally obsolete and beyond its useful life. The station does not adequately address current and future fire safety needs of existing and planned development in downtown Dallas. Current conditions at the station include increased maintenance and repair requests for issues with the electrical system, HVAC, plumbing and overhead doors, emergency vehicle access to the station’s apparatus bays only by backing into them from Griffin Street, open sleeping areas that do not provide any privacy, restrooms and showers that are co-located without any gender separation, and laundry and workout areas located in the apparatus bays. The City’s current budget and 2024 Bond Program did not allocate any funding to the renovation or replacement of the existing Fire Station No. 18.
The proposed Plan amendments are required to facilitate a public/private partnership with a developer to: (1) utilize TIF District funding for the acquisition of a new site and the design and construction of a new Fire Station No. 18 facility and (2) upon completion and acceptance of the new fire station facility, facilitate the direct sale of the current City-owned fire station property (660 N. Griffin Street) to the developer of the new Fire Station No. 18.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 8, 2005, the City Council authorized the establishment of the Downtown Connection TIF District by Resolution No. 05-1779; Ordinance No. 26020, as amended.
On August 29, 2005, the City Council authorized the Plan for the Downtown Connection TIF District by Resolution No. 05-2544; Ordinance No. 26096, as amended.
On October 19, 2005, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to: (1) allow for commercial tax abatements pursuant to Chapter 312 of the Texas Tax Code; (2) designate the City's participation level of 90% in the Downtown Connection TIF District; (3) adjust Dallas County's participation in the Downtown Connection TIF District from $24,000,000 net present value to $18,500,000 net present value; and (4) correct a typographical error in Section 2, Part VII of the Project Plan, titled Non-Project Cost, from an amount to exceed $15,000,000 to an amount not to exceed $15,000,000 by Resolution No. 05-2993; Ordinance No. 26143.
On March 8, 2006, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to amend the Zone boundary to exclude 2400 Bryan Street and 2215 Bryan Street by Resolution No. 06-0836; Ordinance No. 26291.
On December 12, 2007, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to: (1) provide for an affordable housing program requiring Downtown Connection TIF District funded projects to set aside ten percent of the units as affordable and specifying alternatives to providing such units within the TIF funding project; (2) reprogram $2,500,000 from the Park and Plaza Design and Acquisition budget line item to a new budget line item for Retail Initiatives/Streetscape Improvements; (3) expand the use of TIF District funds for grants, in accordance with the Downtown Connection TIF District Grant Program and Criteria, and for affordable housing assistance; (4) correct the principal amount of bonds to be sold from $65,000,000 to $66,000,000; and (5) update Exhibits G, H and J, Appendix A and modify the Plan to reflect 2007 property value and adjusted base year value and make any other necessary adjustments to implement the Plan amendments by Resolution No. 07-3698; Ordinance No. 27032.
On October 22, 2008, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to permit the direct lease or sale of City-owned/City-controlled property without auction and bidding requirements on the condition that the property is redeveloped in accordance with the Plan by Resolution No. 08-2917; Ordinance No. 27377.
On December 10, 2008, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to amend the Zone boundary to include 2307 Caroline Street, 2311 Caroline Street, 1600 Ashland Street, and 1601 Cedar Springs Road by Resolution No. 08-3396; Ordinance No. 27434.
On February 11, 2009, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to: (1) expand the development goals and specific objectives of the Project Plan; (2) expand the Redevelopment of Vacant/ Underutilized Downtown Buildings budget line item to include the Development of Underdeveloped Parcels and Surface Parking Lots; and (3) update Exhibits G and J to reflect updated base value, 2008 increment corrections, and future increment assumptions by Resolution No. 09-0469; Ordinance No. 27489.
On April 22, 2009, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to: (1) amend the affordable housing policy to: (a) permit additional assistance in the form of Affordable Housing Economic Development Grant to those projects providing affordable housing units, (b) extend the eligibility date for additional affordable housing assistance to projects which are approved by City Council from December 31, 2008 to December 31, 2011, (c) update the household income limit charts contained within the Zone to reflect the Dallas Area Median Household Income Limits for 2009; and (2) revise the budget to: (a) reprogram $515,000 from the Retail Initiative/Streetscape Improvements budget line item to a new Downtown Area Plan budget line item; and (b) update Exhibit G to reflect the budget reprogramming and new additional budget line item and make any other necessary adjustments to implement the Plan amendment by Resolution No. 09-1108; Ordinance No. 27529.
On May 22, 2013, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to: (1) increase the Downtown Connection TIF District’s budget from $189,807,592 NPV (approximately $391,744,162 total dollars) to $231,593,554 NPV (approximately $545,726,096 total dollars, an increase of $41,785,962 NPV (approximately $153,981,934 total dollars); (2) expand the District’s focus of redevelopment efforts; and (3) make corresponding modifications to the Downtown Connection TIF District’s budget and Plan by Resolution No. 13-0894; Ordinance No. 29015.
On September 11, 2013, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to: (1) increase the geographic area of the Zone by adding approximately 4,950 square feet; (2) add to the Plan the provision for a land exchange of City-owned property for privately-owned property within the Zone allowing for the land swap of City-owned property without requiring an auction and/or bidding of the property; and (3) make corresponding modifications to the Zone boundary map and Plan and any other necessary adjustments to implement the Plan amendments by Resolution No. 13-1622; Ordinance No. 29143.
On December 14, 2016, the City Council authorized: (1) an amendment to the Downtown Connection TIF District Plan to add the Statler/Library redevelopment project to the Plan; (2) approval of the directed sale, for fair market value consideration and yet to be negotiated sale terms subject to City Council approval, of a 0.129 acre (5,600 square feet) City-owned tract of land addressed as 210 South Harwood Street located in the Zone to Centurion Acquisitions, LP to complete the Statler/Library redevelopment project in accordance with the Plan; and (3) corresponding modifications to the Plan by Resolution No. 16-1959; Ordinance No. 30274.
On June 22, 2022, the City Council authorized amendments to the Plan for the Downtown Connection TIF District to: (1) create two sub-districts within the Zone: (a) Downtown Connection Sub-district (original District boundary) and (b) Newpark Sub-district; (2) increase the geographic area of the Downtown Connection TIF District to add approximately 14.2 acres to create the Newpark Sub-district to facilitate anticipated redevelopment; (3) increase the total budget of the Downtown Connection TIF District (Downtown Connection Sub-district budget) from $231,593,554.00 NPV 2005 dollars (approximately $454,707,775.00 total dollars) to $402,897,888.00 NPV 2005 dollars (approximately $1,059,227,817.00 total dollars, an increase of $171,304,334.00 NPV 2005 dollars (approximately $604,520,042.00 total dollars); (4) modify the Downtown Connection Sub-district budget to add a line item for a public safety building to replace Fire Station #18; (5) establish a termination date for the Newpark Sub-district of December 31, 2052; (6) establish the percentage of tax increment contributed by the City of Dallas during the term of the Newpark Sub-district at 90%; (7) establish a total budget for the Newpark Sub-district of $90,329,182.00 NPV 2022 dollars (approximately $223,786,626.00 total dollars); (8) request Dallas County participation in the Newpark Sub-district at 55% for twenty years beginning in 2027; and (9) make corresponding modifications to the Zone boundary, budget, Plan, and participation agreement with Dallas County; and at the close of the hearing, consider an ordinance amending Ordinance No. 26020, as amended, previously approved on June 8, 2005, and Ordinance No. 26096, as amended, previously approved on August 29, 2005, to reflect these amendments.
On April 1, 2025, the Downtown Connection TIF District Board of Directors and the Downtown Dallas Development Authority Board of Directors reviewed and unanimously recommended City Council approval of the proposed amendments to the Plan for the Downtown Connection TIF District.
The Economic Development Committee was briefed by memorandum regarding this matter on April 7, 2025. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13705678&GUID=66477A18-F821-499E-9AA2-90F4D0A3557D>
On April 23, 2025, the City Council authorized a public hearing to be held on May 14, 2025 to receive public comments on the proposed amendments to the Plan for the Downtown Connection TIF District by Resolution No. 25-0650.
FISCAL INFORMATION
No cost consideration to the City.
MAP
Attached