PILLAR: Growing
AGENDA DATE: October 8, 2025
COUNCIL DISTRICT(S): 2, 14
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
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SUBJECT
Title
Authorize a public hearing to be held on October 22, 2025 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 District (“Zone”) to: (1) increase the geographic area of the Downtown Connection Sub-district of the Zone by approximately two acres of real property to promote development or redevelopment of the Zone; and (2) make corresponding modifications to the Zone’s boundary and Plan; and, at the close of the public hearing on October 22, 2025, 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
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
In 2005, the Downtown Connection TIF District (“TIF District” or “Zone”) 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 mixed-use redevelopment of vacant/underutilized parcels and buildings in the TIF District. Since the COVID 19 pandemic, urban centers and central business districts have been adapting to changes in work patterns, with several buildings experiencing decreased office tenant demand and occupancy, causing building owners to examine adaptive reuse and/or conversion to increase building occupancy, net operating income, and vibrancy.
This Plan amendment proposes to expand the Downtown Connection Sub-District of the Zone by approximately two acres. The proposed Plan amendment enables the TIF District to provide TIF District funding assistance to two important redevelopment projects involving underutilized properties: (1) conversion and redevelopment of the Bank of America Tower and plaza on property addressed as 901 Main Street and 900 Main Street and (2) conversion and redevelopment of the Magnolia Hotel building on property addressed as 1401 Commerce Street. No amendments to the TIF District budget or term are proposed.
Pursuant to the Texas Tax Code, Chapter 311, as amended, the Tax Increment Financing Act (“Act”), a public hearing is required if the boundary of an existing TIF district is increased or decreased, the amount of bond indebtedness is increased or decreased, the percentage of a tax increment to be contributed by a taxing unit is proposed to increase or decrease, the total estimated project costs increases, or additional property within the TIF District is designated to be acquired by the City.
According to the Dallas Central Appraisal District, the 2025 certified taxable value of the real property proposed to be added to the TIF District is $150,320,400.00. Proposed changes to the Plan are minor and include updating the boundary and other maps as necessary and modifying the estimated base year value of the Downtown Connection Sub-District of the Zone from $564,917,317.00 to $715,237,717.00 to reflect the added real property. The base year value may be adjusted based on final Dallas Central Appraisal District 2025 values and any corrections.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 8, 2005, the City Council held a public hearing and 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 August 29, 2024, the Downtown Connection TIF District Board of Directors and the Downtown Dallas Development Authority Board of Directors reviewed and recommended approval of the proposed amendment of the Plan to add approximately 0.432 acres of real property addressed as 1401 Commerce Street to the Downtown Connection Sub-district of the Zone.
On September 30, 2025, the Downtown Connection TIF District Board of Directors and the Downtown Dallas Development Authority Board of Directors reviewed and recommended approval of the proposed amendment of the Plan to add approximately 1.5379 acres of real property addressed as 901 Main Street to the Downtown Connection Sub-district of the Zone.
The Economic Development Committee was briefed by memorandum regarding this matter on October 6, 2025. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13705678&GUID=66477A18-F821-499E-9AA2-90F4D0A3557D>
FISCAL INFORMATION
No cost consideration to the City.