Council authorized City Manager Don Magner to execute the interlocal agreement with DART during the Sept. 8 meeting.
In a nutshell
The agreement allows both entities to participate in a tax increment reinvestment zone, or TIRZ, a finance tool cities can use for improvements. A TIRZ is also called a tax increment finance district, or TIF, the language Richardson officials use. Magner previously presented the plan to council in April.
"We identified three items that we wanted to work with DART on moving forward," Magner said. "The first was really encouraging DART to be a stronger economic development partner to us."
Some context
In fall 2024, several city managers convened to discuss DART participation in a TIRZ, Magner said.
Cities can establish a TIRZ, which allows tax revenue collected within the zone to then be used for economic development. It works by setting a base value within the TIF, and once the sales tax collection reach the base value, the excess revenue can be used for improvement to the area, such as upgraded streets and sidewalks.
All member cities are eligible to participate in a TIRZ with DART but must execute the agreement by Dec. 31.
What next?
Once the agreement is implemented, there will be a five-year term, Magner said. Additionally, all three of the TIFs in Richardson qualify for DART participation. Magner said staff will create a project plan that will require the DART board approval. Once the board approves the plan, Magner will begin working with DART CEO Nadine Lee to set a base value for the TIF and any revenue exceeding the base value will be split equally between the city and DART.
The city portion of the revenue collected will be used for economic development. Anytime within the five-year term, the city may use funds to commence projects within the TIF, Magner said.
