Lake Dallas officials will begin making appointments next week to the tax increment finance district board, which is needed to develop operating procedures, bylaws and a development plan for the city’s TIF zone.
Lake Dallas leaders created the tax increment finance zone for about 118 acres of commercial land currently worth about $26 million along Interstate 35E and Swisher Road. The district is designed to generate revenue to induce business development and attract new residents.
City Manager Earl Berner said the finance district board is needed to create a developmental plan, which will identify goals city leaders would like to accomplish regarding development and redevelopment.
The purpose of the finance district is to bring development to Swisher Road and the I-35E corridor and position the community to gain a new train stop, Mayor Tony Marino said.
The finance district was created after city leaders expressed a desire to redevelop parts of Lake Dallas last fall. During a November bond election, voters approved a $10 million bond program to create the finance district, and the City Council followed up by unanimously agreeing to create the district in December.
Marino said the finance district board will help guide project design as well as oversee the public financing, according to city documents. The board will consist of one council member and four residents who are registered voters.
Unlike a public improvement district, a city doesn’t charge more property taxes in a TIF district. Also, unlike other developer agreements, no city money is rebated for the improvements. Instead, the city continues to collect taxes on the same property tax base, but additional revenues go to the district to pay back bonds, Marino said.
An economic TIF district study conducted for Lake Dallas showed that, in addition to creating $30 million for the finance district over 30 years, it could create another $15 million in sales tax for the city.
In addition to the finance district, city leaders want to use the bond funds to develop the Lake Cities Station Town Center. The center would lie within a portion of the finance district.
The proposed center is designed to create a town square to include a parking structure, a park, retail, office space and residential units.
In setting up the finance district, the City Council members received a preliminary project and finance plan that estimated the future value of the zone’s 118 acres at $135 million by 2041.
Property taxes generated by the new development will be used to repay the bond funds.
The next City Council meeting is scheduled for Thursday at Lake Dallas City Hall, 212 Main St.
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