City Council Discusses Tax Increment Financing for Economic Development

Tax Increment Financing (TIF) is a public financing mechanism through which the growth in taxes (increment) associated with new development or redevelopment can be captured and used to pay costs associated with economic development for the public good. The area in which TIF is being used is known as a Tax Increment Reinvestment Zone (TIRZ). At its July 23 meeting, the City Council received an overview of using TIFs to stimulate investment in Addison Circle and Inwood Road corridor.

The TIF tool can be used to allocate increased property tax revenues from the TIRZ to fund public works, improvements, and economic development projects, without impacting existing general fund revenues. More than 300 TIRZs have been established throughout Texas.

The Council directed staff to move forward with developing a preliminary financial plan needed to create a TIRZ in the Addison Circle area.