Public / Private Partnership Program
Overview
The City of Dallas is the center of the nation’s most diverse large metropolitan economy, and the Office of Economic Development is committed to helping all businesses thrive here. The Public / Private Partnership (P/PP) Program assists for-profit companies and developers to offset project or operational costs through a number of economic development incentives.
As each project is unique, proposals are considered on a case-by-case basis. Tools available include tax abatements, grants, loans and infrastructure cost-sharing, among others.
P/PP Program incentives may be used in combination with other sources of federal, state, or City funds where necessary to achieve the public purpose advanced by a project. The City of Dallas is willing to partner with special entities, such as Local Government Corporations, and special districts to provide an advantageous structure for projects that advance economic development.
Eligibility Requirements
Need-Based Eligibility
The P/PP Program is intended to provide City support for development projects that have financial gaps or for projects that otherwise represent a competitive situation for the City against non-Dallas locations. Companies pursuing incentives under the P/PP Program must provide written assurance that “but for” the incentives, the proposed project would not occur, or would otherwise be substantially altered so that the economic returns or other associated public benefits secured by the City’s participation would be reduced.
Geographic Eligibility
A project must be physically located within the City of Dallas to be eligible. Projects located in a Target Area are given special consideration (see “Investment Eligibility”).
Public / Private Partnership Program Target Area Map
Investment Eligibility
The City has established targeted project areas which set minimum project requirements in order to be considered for incentives:
- Target Areas: Projects must create/retain 25 jobs or provide $1 million of investment;
- Non-Target Areas: Projects must create/retain 100 jobs or provide $5 million of investment; and
- Non-Conforming Projects: Projects not meeting these requirements that nevertheless significantly advance the public purpose of economic development will be considered on a case-by-case basis.
Tools
Tax Abatements under the Public / Private Partnership Program
The City of Dallas may offer city tax abatements on real and/or business personal property, and/or retail sales taxes to projects with eligible investments including capital improvements and/or job creation or retention. Real property tax abatements are not granted in tax increment financing (TIF) districts. In limited cases, projects may be considered for a combination of real and business personal property abatements when the total combined value does not exceed 90 percent of expected new city revenues. All tax abatements begin on January 1st of the second calendar year following City Council authorization unless otherwise specified.
Benefits Based on Geography
- Target Areas: Real property tax abatement up to 90 percent for 10 years and/or a business personal property tax abatement of up to 50 percent for five years;
- Non-Target Areas: Real property tax abatement up to 50 percent for 10 years and/or a business personal property tax abatement of up to 50 percent for five years;
- Non-Conforming Projects: Projects not meeting these requirements that nevertheless significantly advance the public purpose of economic development will be considered on a case-by-case basis.
Secondary Considerations
City staff may include secondary considerations such as Dallas resident employment, exceeding minimum environmental regulations, wages, community activities, target industries, and M/WBE participation as part of the negotiation. Failure to comply with secondary considerations that are included in a City Council-approved will result in the reduction of the abatement by 25 percent for any single year of the tax abatement term in which the secondary considerations are not met, or as otherwise specified by City Council.
Business Development Grants & Loans under the Public/Private Partnership Program
Companies considering relocation, expansion or new facilities and/or commercial development projects in the City of Dallas may be eligible for an economic development grant or loan. Grants and loans may be offered on a case-by-case basis with consideration to project type, location, design and fiscal impact to the City. Companies must meet the eligibility requirements of P/PP Program.
The City may administer and accept resources from other political subdivisions of the state to support this program, and may administer and accept resources from the Federal government to support developments. Bond funding utilized through the program may be subject to certain limitations in use.
Infrastructure Cost Sharing under the Public/Private Partnership Program
Subject to availability, the City of Dallas may contribute financially to infrastructure projects tied to eligible projects under the Public/Private Partnership Program. Private commercial, industrial, retail, residential, and mixed-use development in Southern Dallas or near DART light rail stations may be eligible for funding. Funding for the design, land acquisition and/or construction of eligible infrastructure upgrades include:
- Public streets
- Traffic improvements, including signals,
- Water and sewer utilities
- Stormwater management
- Related facilities or uses consistent with this purpose
Competitive & Retention Projects
Companies receiving offers of incentives from other jurisdictions are eligible to apply for the P/PP Program with negotiable terms. Incentives may be offered in specific cases to match other offers. Companies may be required to show proof of offers from other jurisdictions, land/lease costs, taxes at current rates, utility rates, relocation costs, other significant costs and the 'gap' to be filled, among other information.
Firms currently located in the City of Dallas may be considered for incentives as part of an expansion project. Firms must expand their job base by at least 25 percent to be eligible for consideration.
Neighborhood Commercial / Retail Redevelopment Grant Program
This program targets existing retail shopping centers and other retail-focused commercial properties located in Target Areas that are at least 15 years old for improvements or redevelopment. Projects must have a demonstrable positive impact on the surrounding neighborhoods and residents and must improve the aesthetic, design, and/or architectural appeal of the property. Eligible investments include enhanced landscaping/streetscaping, lighting, pedestrian and parking improvements, new signage, façade improvements, and major structural renovations. City financial participation is on a matching and reimbursement basis. Phasing is permitted. Minimum total project investment of $250,000 is required and potential grants are subject to financial availability. An agreement with the City must be in place before eligible work can commence.
Targeted Industry Projects
The City of Dallas has identified several industry categories that may be given special consideration under the P/PP Program. Projects that fall under one or more of these industry categories may, on a case-by-case basis, be eligible for assistance without meeting the minimum requirements under the program.
- Advanced instrument manufacturing
- Brownfields, recycling, and green industries
- Building materials & furnishings
- Corporate headquarters
- Film / television / media (via Dallas Film Commission)
- Food processing and distribution
- Grocery stores (full service, located in or near food deserts)
- Information technology
- Logistics
- Telecommunications
- Transportation manufacturing and assembly