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

  1. Tax Abatements
  2. Grants & Loans
  3. Infrastructure
  4. Special Programs

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.