PILLAR: Growing
AGENDA DATE: January 28, 2026
COUNCIL DISTRICT(S): CityWide
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
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SUBJECT
Title
A public hearing to receive comments regarding amendments and updates to the City of Dallas Economic Development Incentive Policy, and, at the close of the public hearing, authorize the adoption of the Economic Development Incentive Policy for the public purpose of promoting economic and community development and stimulating business and commercial activity in the City of Dallas, including: (1) updated language to ensure alignment with federal directives and associated policy amendments specifically including updated language regarding the new Developing Regional and Inclusive Vendor Enterprises program; (2) addition of a new provision allowing City Council to approve a non-conforming negotiated incentives project with a three-quarters vote of City Council; (3) clarification that the Office of Economic Development has administrative responsibility for funding from Proposition H of the 2024 City’s General Obligation Bond Program and funding from the City’s Mixed Income Housing Development Bonus Program; and (4) general clean-up revisions and minor/technical corrections - Financing: No cost consideration to the City
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
On January 25, 2023, City Council authorized the Economic Development Incentive Policy by Resolution No. 23-0220. On March 27, 2024, City Council authorized amendments to the Economic Development Incentive Policy by Resolution No. 24-0435 to implement the 2024 economic development general obligation bond proposition, reflect changes to state law, make minor program updates, add cost recovery provisions, and make general updates and clarifications. On January 8, 2025, City Council authorized amendments to the Economic Development Incentive Policy by Resolution No. 25-0162 to add a Small Business Program, add an Innovation Program, amend the South Dallas/Fair Park Opportunity Fund Program Statement, amend the Southern Dallas Investment Fund Program Statement, amend Neighborhood Empowerment Zone #9 and Neighborhood Empowerment Zone #10, amend the Community Development Plan, and make other minor updates and technical corrections.
The Economic Development Incentive Policy defines the conditions under which the City may approve economic development incentives as authorized under Chapters 373, 378, and 380 of the Texas Local Government Code and Sections 311 and 312 of the Texas Tax Code. Specifically pursuant to Chapter 312 of the Texas Tax Code, Section III (Subsections 1 and 2.1) of the Economic Development Incentive Policy serves as the City’s adopted guidelines and criteria governing tax abatements. City Council’s January 8, 2025 adoption of the Economic Development Incentive Policy renewed the adoption of guidelines and criteria governing tax abatements for a new two-year period. However, changes are now necessary to ensure alignment with federal directives and associated policy amendments that were authorized by City Council on December 10, 2025 by Resolution No. 25-1895. Per Chapter 312 of the Texas Tax Code, the guidelines and criteria may be amended or repealed only by a vote of three-fourths of the members of the governing body. Before the City Council may adopt, amend, repeal, or reauthorize guidelines and criteria, the statute requires that a public hearing be held regarding the proposed change.
Staff is recommending the following changes to the Economic Development Incentive Policy:
1) Updated language to ensure alignment with federal directives and associated policy amendments that were authorized by City Council on December 10, 2025 by Resolution No. 25-1895, specifically including updated language regarding the new Developing Regional and Inclusive Vendor Enterprises (DRIVE) program (authorized by City Council on December 10, 2025 by Resolution No. 25-1879),
2) Addition of a new provision allowing City Council to approve a non-conforming negotiated incentives project with a three-quarters vote of City Council,
3) Clarification that the Office of Economic Development has administrative responsibility for funding from Proposition H of the 2024 City’s General Obligation Bond Program and funding from the City’s Mixed Income Housing Development Bonus Program, and
4) General clean-up revisions and minor/technical corrections.
A redline draft with the recommended amendments to the Economic Development Incentive Policy is attached as Exhibit A.
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, authorized adoption of the 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 Economic Development Incentive Policy 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 Economic Development Incentive Policy for the period of January 1, 2025, through December 31, 2026, by Resolution No. 25-0162.
On June 11, 2025, the City Council authorized amendments to the Economic Development Incentive Policy by Resolution No. 25-0938.
The Economic Development Committee was briefed by memorandum regarding this matter on January 6, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15043796&GUID=4AA69CDE-5194-4AD1-B707-5C168CC65175>
On January 14, 2026, City Council authorized a public hearing to be held no earlier than 9:00 am on January 28, 2026, at which time any interested person may appear and speak for or against the amendment of the Economic Development Incentive Policy by Resolution No. 26-0219.
FISCAL INFORMATION
No cost consideration to the City.