Prosper officials are moving forward with plans to create a new tax increment reinvestment zone, or TIRZ, aimed at encouraging development along the Dallas North Tollway and surrounding areas.

The proposed TIRZ No. 3 would generally include property along Dallas Parkway from US 380 to Frontier Parkway and parts of the downtown area. At their Nov. 25 meeting, Prosper Town Council held a public hearing on the creation of the new TIRZ and reviewed the proposed investment plan.

A TIRZ allows a municipality to use a portion of future increases in property tax revenue to fund public improvements within the zone.

Zooming in

According to town documents, the TIRZ could fund just over $193 million in projects over a 20-year period. Potential investment categories include:
  • $100.5 million for street and transportation projects
  • $25.6 million for parks and downtown enhancements
  • $40 million for public facilities, including a new recreation center
  • $2.7 million in public safety operations and maintenance
  • $22.3 million for utilities infrastructure
  • $2 million for drainage infrastructure
Assistant Town Manager Chuck Ewings said 50% of the new increment would be dedicated to TIRZ projects and 50% toward the town’s general fund.


Ewings said the total projected revenue could range from $12.5 million to $40.2 million, assuming between 3%-7% annual growth.

“The expectation is ... the values would grow a great deal more than what’s projected,” Ewings said. “This is just a simple projection because of the timing of when that growth will occur is unknown at this time.”

Prosper currently has two other tax increment reinvestment zones, including TIRZ No. 1 around the Gates of Prosper area and TIRZ No. 2 at Dallas Parkway and US 380.



Some context

Town documents note future development projects will “far exceed the amount projected in the plan,” referencing the recently proposed $313 million Bella Prosper mixed-use development.

The development, which was tabled until February 2026, would not fall within the proposed TIRZ, according to town documents.

One project that would be included in the proposed TIRZ is the Pradera mixed-use development at Dallas North Tollway and Frontier Parkway, which was approved by Town Council in 2023.


The development is expected to be a 20-year project, as previously reported by Community Impact.

What’s next?

Ewings said council will not take action on the proposed TIRZ until its Dec. 9 meeting.