PILLAR: Growing
AGENDA DATE: January 28, 2026
COUNCIL DISTRICT(S): 1, 4
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
______________________________________________________________________
SUBJECT
Title
Authorize a tax increment financing (“TIF”) development and a Chapter 380 grant agreement (“Agreement”) with Southern Gateway Public Green Foundation (“Developer” of “SGPGF”) in a total amount not to exceed $8,000,000.00, including up to $6,964,198.00 from the Oak Cliff Gateway TIF District (“TIF Subsidy”) and an economic development grant of $1,035,802.00 (“Grant”) from the 2012 General Obligation Bond Program, in consideration of the Phase I Plaza Area Project at Halperin Park (“Project”), in accordance with the Economic Development Incentive Policy - Total not to exceed $8,000,000.00 - Financing: Oak Cliff Gateway TIF District Fund ($6,964,198.00) (subject to annual appropriations from tax increments) and Economic Development & Housing Development Fund (2012 General Obligation Bond Fund) ($1,035,802.00)
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
On November 10, 2021, the City Council authorized a development agreement between the City’s Park and Recreation Department and the SGPGF for the design and construction of Southern Gateway Deck Park (now Halperin Park) Plaza Area by Resolution No. 21-1840. SGPGF was created to develop a public plaza above Interstate Highway (IH) 35E and raise funds for its design and construction. The deck structure would be built by the Texas Department of Transportation and primarily funded through the North Central Texas Council of Governments.
The development agreement was executed on April 13, 2022. Per the development agreement, the City would own the Plaza Area and its related improvements upon completion. The Plaza covers approximately five acres, spanning IH 35 East (IH-35) from Marsalis Avenue to Ewing Avenue. The Plaza would be designed atop the deck superstructure in two phases. Phase I would include the area from Ewing Avenue to Lancaster Avenue. Phase II would include the area from Lancaster Avenue to Marsalis Avenue.
The estimated total cost for Phase I, including the deck superstructure and Plaza Area, is $122,000,000.00. The estimated construction cost for the Phase I Plaza Area is $75,000,000.00.
SGPGF’s construction of the Phase I Plaza Area is approximately 80-85% complete (at the time of application), and SGPGF is targeting 100% completion in Spring 2026. SGPGF has dedicated significant effort to fundraising and has secured donations from well-respected philanthropic organizations such as the Communities Foundation of Texas and the Moody Foundation, as well as a significant gift from the Halperin Foundation, which includes naming rights to the Plaza Area.
Despite SGPGF’s efforts, the Project still faces a funding gap of approximately $24 million (at the time of application) to complete construction of the Phase I Plaza Area and support initial operations. Bridge financing (secured through a line of credit) protects the construction of the Project while SGPGF completes fundraising. When the Phase I Plaza Area is completed in Spring 2026, a final balloon payment on the bridge financing will be due. However, after construction of the Phase I Plaza Area is completed and the Plaza Area moves into operations, SGPGF will be managing and operating all activities, and it is critical that SGPGF’s reliance on the line of credit is minimized.
On August 15, 2025, the City Manager’s Office received a memo from the Mayor’s Office requesting that the remaining $1,035,802.00 of the Mayor’s discretionary funding allocation from the 2012 General Obligation Bond Program (Proposition No. 3: Economic Development) be committed to the Phase I Plaza Area Project at Halperin Park. This funding will be deployed in the form of the Grant as described below.
The Project is consistent with the goals and objectives of the Oak Cliff Gateway TIF District Project Plan and Reinvestment Zone Financing Plan (“Plan”). Therefore, to advance implementation of the Plan and facilitate SGPGF’s full delivery of the Project for maximum public benefit, Office of Economic Development (OED) staff issued a letter of intent to SGPGF, proposing the Agreement comprised of the two gap funding components listed below. SGPGF accepted OED staff’s letter of intent on December 23, 2025.
(1) A TIF Subsidy in an amount not to exceed $6,964,198.00 as described below, and
(2) an economic development Grant in an amount not to exceed $1,035,802.00 as described below.
Collectively, the funding total is an amount not to exceed $8,000,000.00 and shall be collectively referred to as “City Funding.”
The City Funding shall be disbursed upon SGPGF’s submission of and OED staff’s verification of detailed documentation evidencing Substantial Completion of the Required Project Components. The City Funding shall be comprised of the following:
1. TIF Subsidy. Up to $6,964,198.00 in accordance with the established budget in the Oak Cliff Gateway TIF District Plan. No interest shall accrue on any portion of the TIF Subsidy.
|
Clarendon/Beckley/Kiest Sub-District |
Amount |
|
Parks and Open Space |
$6,964,198 |
|
|
|
|
TOTAL TIF SUBSIDY - amount not to exceed |
$6,964,198 |
Funds may be shifted among budget categories so long as the total TIF Subsidy does not exceed $6,964,198.00. Additionally, the total TIF Subsidy shall not exceed $6,964,198.00 under any circumstances but may be less if actual documented expenditures are less.
The TIF Subsidy is subject to the SGPGF’s satisfaction of all terms and conditions in the Agreement and in accordance with the Oak Cliff Gateway TIF District Increment Allocation Policy. The TIF Subsidy will be comprised of available District-Wide Set Aside funds and any unallocated increment in the Clarendon/Beckley/Kiest Sub-District.
2. Grant. Up to $1,035,802.00 sourced from the City’s 2012 general obligation bond program (Mayor’s discretionary allocation of bond funds from Proposition No. 3: Economic Development) shall be disbursed as a Chapter 380 economic development grant for capitalized costs of the Required Project Components and for no other purpose. No portion of the Grant shall be used to pay for developer fees, working capital, operating expenses, or any non-capitalized expenses of the Required Project Components. SGPGF’s submission of necessary documentation requesting the disbursement of the Grant shall include a capital cost affidavit (in a form attached to the Agreement).
The Project shall include the following Required Project Components (“Required Project Components”):
i. Oak Cliff Trail: an Americans with Disabilities Act accessible ramp connecting the lower park level to the landing and terrace above. The ramp includes a lighted handrail to enhance safety and aesthetics, glass fiber reinforced concrete panels on the exterior walls that mimic the limestone walls of Oak Cliff, and a grippy, high-friction coating to ensure safe footing for park visitors.
ii. 12th Street Promenade: the main pedestrian pathway through the park. It skirts the main gathering spaces of the park (the great lawn and the amphitheater/grove seating areas) and runs from the southbound I-35 access road to the corner of Ewing and the northbound I-35 access road. The promenade is a symbolic nod to Halperin Park’s purpose by physically reconnecting the streetscape divided by IH-35, running directly into 12 Street on the west side of the park.
iii. Lighting: a robust, intentional lighting plan including over 500 distinct lighting elements to enhance the beauty of the park and provide a safe, visible environment for visitors and the surrounding community, comprised of ambient lighting, decorative, artistic light poles, emergency flood lighting, and recessed lighting. All fixtures use energy-efficient Light-Emitting Diode lighting and include safety elements.
iv. Utilities: Because Halperin Park and its foundations have been created literally from the air itself, all utilities have to be constructed from scratch and connected to existing lines on the access road. Beneath its landscaped surface lie miles of utilities (including water, sewer, storm, gas, and fire lines) that ensure the park functions efficiently.
Proximity to parks increases demand for residential and commercial development in cities. A Phase I Economic Impact Study in 2021 by the University of North Texas Dallas projected that Halperin Park could attract over 2 million annual visitors and 2,400 new residents within five years of opening. During that period, the park’s economic impact is estimated to be nearly $1 billion, including approximately $325 million in retail and restaurant sales and between $483 million and $604 million in new property tax value within a 71-acre area around the park. Local sales tax from new retail activity is projected to be between $6.5 and $7.5 million. Halperin Park will be a landmark City park and a community asset for the southern sector of Dallas while catalyzing economic development in the area.
ESTIMATED SCHEDULE OF PROJECT
Begin Construction (Phase I) Spring 2024
Complete Construction (Phase I) Spring 2026
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 10, 2021, by Resolution No. 21-1840, the City Council authorized a development agreement with the Southern Gateway Public Green Foundation for the purpose of design and construction of the Plaza Area of the Southern Gateway Deck Park project located at Interstate Highway 35E between Marsalis Avenue and Ewing Avenue.
On January 6, 2026, the Oak Cliff Gateway TIF District Board of Directors reviewed the proposed Project and unanimously recommended City Council authorization of the Agreement with Developer in an amount not to exceed $8,000,000.00.
The Economic Development Committee was briefed by memorandum regarding this matter on January 6, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15043800&GUID=9C2B0BD5-5303-4DAA-8D38-E9D0A70E0F42>
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Oak Cliff Gateway TIF District Fund |
$6,964,198.00 |
$0.00 |
$0.00 |
|
Economic Development & Housing Development Fund (2012 General Obligation Bond Fund-Proposition 3) |
$1,035,802.00 |
$0.00 |
$0.00 |
|
Total |
$8,000,000.00 |
0.00 |
0.00 |
OWNER/EXECUTIVE
Southern Gateway Public Green Foundation
Mike Gruber, Board Chairman
MAP
Attached