trinity groves economic impact study

7/30/2019 Trinity Groves Economic Impact Study

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Trinity Groves:Estimated Economic, Fiscal, and Developmental Impactsof a Potential Talent Magnet and Culinary Industry Cluster

Weinstein, Clower, and Associates

Bernard Weinstein, Ph.D.Terry L. Clower, Ph.D.Michael Seman, M.S.

December 1, 2012


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TABLE OF CONTENTS

Executive Summary ....................................................................................... i

I. Introduction .................................................................................................... 1II. Economic and Fiscal Impacts of Construction Activities .............................. 3

III. Economic and Fiscal Impacts of Recurring Operations ................................ 7IV. Trinity Groves as Talent Magnet and Culinary Industry Cluster .................. 12V. Conclusion ..................................................................................................... 16

Appendix

A.

Applicable State and City Incentive Programs .............................................. 17


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Executive Summary

Art and culture are increasingly leveraged as catalysts for urban redevelopment.

Projects of varying sizes across the country and internationally have successfully

reinvigorated their surrounding urban landscapes, recording measurable economic and

fiscal impacts in the process. Trinity Groves is a planned mixed-use urban redevelopment

project driven by the culture of food and will include a Restaurant Concept Incubator

program, multiple restaurants, epicurean specialty shops and markets, craft breweries,

and culinary education options in addition to live theater, art-house films, music venues,

art galleries, and museums.

The development of Trinity Groves will be a multi-year process with two phases

of construction. It is estimated that the first phase will be completed within five years and

the second phase will see completion within ten years after that. During the construction

of Trinity Groves, and throughout its on-going business operations, the project will

provide measurable economic and fiscal impacts for both the city of Dallas and Dallas

County. Trinity Groves value to Dallas extends beyond impact numbers, however. The

redevelopment project will operate as an urban amenity that will prove to be attractive to

an educated, highly-skilled workforce that may not currently consider living within the

city limits of Dallas but are looking for an urban lifestyle that is epicurean-based, such as

can be found in the neighborhoods of Portland, Brooklyn, and San Francisco.

Trinity Groves mix of the epicurean lifestyle and the culinary industry, in

addition to the economic, geographic, and demographic strengths already present in the

DFW region, may catalyze a culinary industry cluster not unlike the successful tech

cluster of Silicon Valley. Trinity Groves and its Restaurant Concept Incubator program


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will provide both the focal point and the extended infrastructure to facilitate the

combination of chefs, kitchen employees, entrepreneurs, brew masters, executives, dining

patrons, and other players necessary to foster a culture of continuous innovation. An

additional point to consider is that if leveraged across Dallas existing business and

convention infrastructure, Trinity Groves culinary cluster may also be a magnet for

culinary industry relocations, and it could enhance Dallas appeal to food, entertainment,

and hospitality-related conventions and trade shows.

What follows is a brief overview of the economic and fiscal impacts relating to

the construction and on-going business activities of the Trinity Groves urban

redevelopment project. Greater detail of the figures presented, and a discussion of the

methodology used to arrive at them, can be found in the accompanying report.

The initial five-year construction phase of Trinity Groves will result in:

Dallas County gaining more than $2 billion in economic activity, increasing grossregional product by $1 billion

Dallas County gaining almost 14,000 person years of employment, increasinglabor income in the County by about $725 million during development

Dallas County property income rising by $246 million and state and local taxingjurisdictions gaining over $63 million in revenues

The city of Dallas gaining more than $1.7 billion in economic activity The city of Dallas gaining 11,000 person years of employment, paying $587

million in salaries, wages, and benefits

The city of Dallas recording an increase of $184 million in property income An annual local tax revenue boost of $24.6 million across several jurisdictions

Trinity Groves second phase of construction will end within ten years after the

initial phase is completed and the combined economic and fiscal impacts for bothwill result in:

Dallas County gaining more than $3.3 billion in new economic activity Dallas County gaining over 22,000 person years of employment, increasing labor

income in the County more than $1.1 billion during development

Dallas County property income rising by $400 million and state and local taxingjurisdictions gaining $102 million in revenues

The city of Dallas gaining just over $2.7 billion in economic activity


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The city of Dallas gaining almost 18,000 person-years of employment, paying$931 million in salary, wages, and benefits

The city of Dallas seeing an increase of $300 million in property income

On-going business operations at Trinity Groves before the second phase ofdevelopment will result in:

Dallas County gaining almost $250 million per year in economic activity Dallas County gaining more than 1,900 permanent jobs, paying over $72 million

per year in salaries, wages, and benefits

Dallas County will see an annual boost of $73 million in property income The city of Dallas gaining over $200 million per year in economic activity The city of Dallas gaining over 1,600 permanent jobs, paying $56 million per year

in salaries, wages, and benefits

The city of Dallas will see an annual boost of $65 million in property income An annual local tax revenue boost of $24.6 million across several jurisdictions

On-going business operations at Trinity Groves after the second phase of

development will result in:

Dallas County gaining almost $359 million per year in economic activity Dallas County gaining more than 2,500 permanent jobs, paying over $94 million

per year in salaries, wages, and benefits

Dallas County will see an annual boost of $117 million in property income The city of Dallas gaining over $300 million per year in economic activity The city of Dallas adding more than 2,100 permanent jobs, paying $71 million per

year in salaries, wages, and benefits

The city of Dallas will see an annual boost of $104 million in property income An annual local tax revenue boost of more than $39 million across several

jurisdictions


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I. Introduction

Art and culture are increasingly leveraged as catalysts for urban redevelopment.i

Projects of varying sizes across the country have successfully reinvigorated their

surrounding urban landscapes, recording measurable economic and fiscal impacts in the

process. In Omaha, Nebraska, music and film are the focal points for Slowdown, a

$10.2 million dollar mixed-use project helping to catalyze additional development in the

citys once blighted North Downtown area.ii Santa Fe, New Mexico tapped the fine

arts to spearhead the redevelopment of its rail station. The result is The Railyard, a

successful transit-oriented development project encompassing art galleries, museums, arts

organizations, a wide-range of community-based cultural events, local and national retail,

and continued development of adjacent areas.iii If one were to solely focus on Texas,

projects in Austin, Dallas, Denton, Fort Worth, Houston, and San Antonio could all

provide examples of art and culture successfully driving urban redevelopment projects.

Internationally, the story is the same from Bilbao, Spain to Shanghai, China.ivv

Trinity Groves is a mixed-use urban redevelopment project driven by the culture

of food. With an innovative Restaurant Concept Incubator program, multiple newly-

created restaurants, epicurean specialty shops and markets, destination-oriented retail

offerings, craft breweries, and culinary education slated as the broader cornerstone of the

development, Trinity Groves will leverage culinary lifestyle and commerce across an

initial 15 acres of redevelopment, eventually influencing the remainder of the broader

projects 65 acre total. Along with the culinary aspects of the redevelopment, additional

art and culture ingredients will include live theater, music venues, art galleries, and a

museum. Also unique to the project is its planned two-tiered residential build-out


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II. Economic and Fiscal Impacts of Construction Activities

The proposed development plan for Trinity Groves represents one of the largest

private development programs ever seen in the city of Dallas including office, multi-

family residential, retail/restaurant, and hotel land uses. Taking a different approach, the

developer team envisions the creation of multi-family properties in a multi-story podium

design that will eventually be revised and expanded to include residential towers of up to

20-stories. These towers will be built as a replacement to designated sections of the

multi-story podium buildings.

To estimate the economic and fiscal impacts of the construction activity, we

utilize an economic input-output model developed by the Minnesota IMPLAN Group.

The IMPLAN model provides estimates of total economic activity including direct,

indirect, and induced impacts based on the activities of a given entity. For example, the

direct effects of construction would include the activities of the construction firm that

hires employees, pays wages, and purchases building materials. In addition, the

construction firm will buy office supplies, contract for construction site sanitary services,

and engage professional service providers such as accountants and attorneys as a part of

their normal business operations.

Indirect effects capture the economic activities of the construction companys

vendors. For example, the accounting firm that provides bookkeeping services to the

construction firm buys office supplies, rents space, purchases computer equipment, and

hires services for their business needs. Induced effects include the impact of the

employees of all of these firms spending a portion of their wages and salaries on goods

and services in the local economy. The IMPLAN model provides impact estimates at the


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county level or aggregation of counties and adjusts the impact estimates for spending that

leaks out of the local economy. A way to better understand this concept is to consider the

fuel used for construction equipment. The fuel was not refined in the Dallas area;

therefore, little of the estimated purchase value of that fuel is counted as contributing to

the local economy.

Based on information provided by the developer and recent commercial and

residential construction trends, construction costs for the initial development phase will

exceed $1 billion and will occur over a several year period. This spending will provide a

tremendous economic boost to Dallas County and the city of Dallas. County wide

economic activity will increase by more than $2 billion, boosting gross regional product

by $1 billion, creating almost 14,000 person years of employment, and increasing labor

income in the county by about $725 million during development (see Table 1). In

addition, property income in the form of rents, royalties, dividends, and corporate profits

will rise by $246 million and state and local taxing jurisdictions will gain over $63

million in revenues during initial construction.

Adjusting the data to examine city level impacts, we find that the initial

construction phase of Trinity Groves will boost economic activity in the city of Dallas by

$1.7 billion creating over 11,000 person years of employment that will pay $587 million

in salaries, wages, and benefits. Property income will also increase by $184 million.


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Table 1

Economic and Fiscal Impacts of Development ConstructionInitial Phase (no towers)

Description Dallas CountyImpacts City of DallasImpacts

Output $ 2,047,358,000 $ 1,700,519,000

Gross Regional Product $ 1,034,409,000 $ 814,542,000

Labor Income* $ 724,966,000 $ 587,465,000

Employment (person years)** 13,858 11,328

Property Income $ 246,355,000 $ 184,149,000

State & Local Indirect Business Taxes^ $ 63,088,000 ---* Includes salaries, wages, and benefits. ** A person year of employment is one job lasting for one year.# Includes rents, royalties, dividends, corporate profits. ^ Includes sales taxes, property taxes, and fees forlicenses and permits. Sources: Trinity Groves, LLC, authors estimates, IMPLAN model.

As noted, the second phase of the development project will include the addition of

residential towers timed to meet market demand as well as additional retail and restaurant

product. These high-rise project elements are being designed to be affordable for middle-

income earners with a target market of young professionals and empty nesters, though

some families may also find the lifestyle features of the development very attractive.

Construction of this phase of the project will add about $650 million in spending for the

development bringing total construction expenditures to over $1.7 billion over a 10-15

year period. When added to the impacts of the initial phase of construction, the Trinity

Groves development will generate over $3.3 billion in new economic activity for Dallas

County, boost labor income by $1.1 billion, and support over 22,000 person-years of

employment (see Table 2). Property income will rise by $400 million and state and local

taxing jurisdictions will see revenues rise by $102 million.

The city of Dallas portion of these impacts totals about $2.7 billion that will

create almost 18,000 person-years of employment boosting labor earnings by $931


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million. Property income in the city will increase $300 million during the entire

development program.

Table 2

Economic and Fiscal Impacts of Development ConstructionFull Development (including towers)

Description Dallas County

Impacts

City of Dallas

Impacts

Output $ 3,300,670,000 $ 2,741,582,000

Gross Regional Product $ 1,655,810,000 $ 1,300,727,000

Labor Income* $ 1,152,994,000 $ 930,857,000

Employment (person years)** 22,080 17,976

Property Income $ 400,516,000 $ 300,455,000

State & Local Indirect Business Taxes^ $ 102,299,000 ---

* Includes salaries, wages, and benefits. ** A person year of employment is one job lasting for one year.# Includes rents, royalties, dividends, corporate profits. ^ Includes sales taxes, property taxes, and fees forlicenses and permits. Sources: Trinity Groves, LLC, authors estimates, IMPLAN model.

The economic and fiscal impacts of building the Trinity Groves development are

impressive, creating new jobs and business opportunity in Dallas for an extended period

of time. However, the development will reach build out and the construction expenditures

will cease. Fortunately, continuous economic and fiscal benefits will occur through

recurring operations at the residential property, hotel, offices, retail shops, dining and

drinking establishments, entertainment venues, and in the Restaurant Concept Incubator

program.


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III. Economic and Fiscal Impacts of Recurring Operations

To estimate the recurring economic and fiscal impacts of on-going business

operations at the proposed Trinity Groves development, we once again use the IMPLAN

model; but it is important to understand what is and is not included in these estimates.

Taking a very conservative approach, the developers of Trinity Groves want to show their

impacts at the lower end of a range of possibilities. For example, in assessing the

economic impacts of the residential component of the development, we do not count the

impacts of household spending by tenants other than what they would spend at Trinity

Groves shops, restaurants, and other venues.

There is little doubt Trinity Groves will attract residents who otherwise would

choose to live outside of Dallas and Dallas County. These new residents will spend

money at Trinity Groves but will also spend money at other Dallas venues, such as dining

in Uptown or the West End. In our view, by not counting this potentially large new

source of spending in Dallas we are more than accounting for any substitution effect the

Trinity Groves development may have on existing Dallas businesses. This is why the

residential component of the development is so important to the overall vision of the

project for the city of Dallas.

In addition, we do not include specific estimates of the economic impacts

associated with the businesses that will occupy office spaces at Trinity Groves. Trinity

Grovesas a live-work development and center for innovation in the culinary industry

will attract businesses back to Dallas central city and likely be a catalyst for business

attraction and development that will be described later in this report. But, to be


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conservative, we assume that an unknown number of businesses may relocate from other

areas of Dallas and therefore we exclude this source of new economic activity.

The result of this highly conservative approach is that the estimates presented

below indicate a minimum level of the potential impacts of the Trinity Groves

development. Nonetheless, even taking this conservative approach, Trinity Groves offers

Dallas County and the city of Dallas a tremendous opportunity for economic growth and

development.

Breaking our assessment into two phases, which can be described as before the

residential towers are built and after the residential towers are built, we observe that the

business and job creation impacts are impressive. Activities quantified in our analysis of

phase one include the business operations of leasing and maintaining over 4,300

residential units and more than one-half million square feet of office space, operating a

220-room hotel, and businesses occupying over 180,000 square feet of retail and other

commercial space.

When the initial phase of development at Trinity Groves is completed, associated

business activities will boost economic activity in Dallas County by at least one-quarter

billion dollars per year. More than 1,900 permanent jobs will be added to the economy

paying more than $72 million per year in salaries, wages, and benefits. Property income

in the county will increase $73 million each year (see Table 3). Over $200 million of this

projected economic activity will occur in the city of Dallas, increasing local labor income

by $56 million per year, supporting over 1,600 permanent jobs, and boosting property

income by $65 million annually.


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Table 3Economic Impacts of Recurring Operations

Initial Phase Completed (no towers)

Description Dallas County Impacts City of Dallas Impacts

Output $ 249,257,000 $ 207,230,000Gross Regional Product $ 165,104,000 $ 138,034,000

Labor Income* $ 72,062,000 $ 55,992,000

Employment (jobs) 1,915 1,616

Property Income $ 73,549,000 $ 64,761,000* Includes salaries, wages, and benefits. # Includes rents, royalties, dividends, corporate profits. Sources:Trinity Groves, LLC, authors estimates, IMPLAN model.

Adding the residential towers will bring the total number of residential units to

7,776 and will add about 40,000 square feet of commercial space. The related additional

business activities will boost recurring annual economic activity in Dallas County to

almost $359 million per year supporting over 2,500 direct, indirect, and induced jobs that

will pay $94 million each year in salaries, wages, and benefits (see Table 4). The

associated impacts on the city of Dallas include almost 2,100 new, permanent jobs, about

$300 million in annual economic activity, an increase in labor income of more than $71

million per year, and about $105 million in new recurring property income.


Full Development (including towers)

Description Dallas County Impacts City of Dallas Impacts

Output $ 358,807,000 $ 299,391,000

Gross Regional Product $ 239,742,000 $ 201,408,000

Labor Income* $ 94,194,000 $ 71,517,000

Employment (jobs) 2,522 2,098

Property Income $ 117,138,000 $ 104,596,000* Includes salaries, wages, and benefits. # Includes rents, royalties, dividends, corporate profits. Sources:Trinity Groves, LLC, authors estimates, IMPLAN model.

Importantly, Trinity Groves is a private development representing the opportunity

to boost revenues for all Dallas County taxing jurisdictions. Based on data from Trinity


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Groves, LLC, comparable properties, the IMPLAN input-output model, and the authors

land use planning model, once the initial phase of development is completed, Trinity

Groves will be directly or indirectly boosting local tax revenues by $24.6 million per

year. These estimates include property taxes, sales and use taxes, and other revenues.

Other revenues include indirect and induced non-tax items such as local license and

permit fees, vehicle registration fees, and other sources of government income. State

revenue is not included in this analysis, though the impacts on state coffers will be

substantial.

Table 5 provides detailed estimates of new revenues for each local taxing

jurisdiction. Of particular note is the $10.4 million potential increase in revenues for the

Dallas Independent School District and $7.8 million for the city of Dallas. Other area

school districts will share in indirect and induced property tax gains from businesses and

individuals that will gain sales or labor income from Trinity Grove operations, but these

are not included in this analysis.

Table 5Annual Fiscal Impacts of Recurring Operations

Initial Phase Completed (no towers)($2012)

Entity Property

Taxes

Sales Taxes Other

Revenue

Total

City of Dallas $ 6,459,159 $ 1,156,562 $ 198,456 $ 7,814,178

Dallas ISD $ 10,457,411 $ 10,457,411

Dallas County $ 2,050,698 $ 2,050,698

DCCD $ 967,456 $ 967,456Hospital District $ 2,196,276 $ 2,196,276

DART $ 1,156,562 $ 1,156,562

Totals $22,131,000.00 $1,156,562.00 $198,456.00 $24,642,581.00Sources: Trinity Groves, LLC, IMPLAN, authors estimates.


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When the residential towers and related new commercial space are added to the

development, total potential tax revenues for local jurisdictions will increase to over $39

million per year. This includes annual receipts for the city of Dallas increasing to more

than $12 million per year and annual contributions to DISD approaching $17 million per

year (see Table 6).


Full Development (including towers)

Entity Property Taxes Sales Taxes Other

Revenue

Total

City of Dallas $ 10,477,755 $ 1,508,814 $ 279,581 $ 12,266,149Dallas ISD $ 16,963,538 $ 16,963,538

Dallas County $ 3,326,549 $ 3,326,549

DCCD $ 1,569,363 $ 1,569,363

HospitalDistrict

$ 3,562,700 $ 3,562,700

DART $ 1,508,814 $ 1,508,814

Totals $35,899,905.00 $1,508,814.00 $279,581.00 $39,197,113.00Sources: Trinity Groves, LLC, IMPLAN, authors estimates.


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IV. Trinity Groves as Talent Magnet and Culinary Industry Cluster

One form of culture that is often overlooked as a potential urban redevelopment

catalyst is food. A cultural touchstone that spans across age, ethnicity, and community,

food has grown in the nations consciousness both in terms of scale and scope. Celebrity

chefs are the new rock stars while the next hopefuls cultivate popularity on any number

of culinary reality shows. Food trucks with eclectic menus are now ubiquitous in cities

across the country while pop-up restaurants are thriving in New York and San

Francisco. At the same time, the epicurean lifestyle of foodies is increasingly broadcast

on the pages of magazines, in blogs, and on television.

Food as lifestyle also dovetails with the emerging trend of urban residents seeking

healthy, environmentally sound alternatives in their daily activities. Restaurants

designing menus around farm-to-table ingredients, gardeners harvesting small pockets of

land on empty corners or rooftops, and commuters keeping low carbon footprints by

living near employment and opting to bike or use public transportation are all trending

activities within urban communities.viviiviii

Urban landscapes and economies benefit from food in a variety of ways. San

Diego, Denver, and Asheville embrace their craft-brewing clusters resulting in export

products, spin-off opportunities, and tourist traffic.ix x xi Two culinary-focused friends

turned entrepreneurs in Philadelphia leveraged a design-friendly furniture boutique into

four restaurants, a chocolatier, another boutique, and a gourmet grocer. The result is a

once blighted street transitioning into Midtown Village a culinary lifestyle

destination for the city.xii Philadelphia is also home to the $6 million Dorrance H.

Hamilton Center for Culinary Enterprises a 13,000 square foot adaptive reuse project


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that will help incubate food-based business in the city.xiii Similar kitchen incubators are

located in other cities across the country.xivxv There are also countless restaurant rows

breathing new life into urban landscapes.

Now is the time for city leaders nationwide, and Dallas in particular, to seriously

consider food as a catalyst for urban redevelopment and economic revitalization. Trinity

Groves is a mixed-use project perfectly poised to capitalize on national culinary trends

and the sectors overall popularity.

Trinity Groves goes beyond being simply a tourist destination or just a food-based

incubator. The holistic nature of the project leverages the nations culinary renaissance

across multiple lifestyle experiences. Residential lofts, live theater, art-house films, music

venues, art galleries, dining, microbreweries, recreational cycling, and artisan retail

shopping for wine, cheese and chocolate will all be represented at Trinity Groves. The

projects cornerstone the innovative Restaurant Concept Incubator programis just one

part of the overall picture. Because of this wide diversity, Trinity Groves will serve a

two-fold purpose in the urban redevelopment and economic future of Dallas.

In post-industrial America, regions compete for talent. Incentives still play a role

in industrial relocation, but often the number one resource a firm will look for in a region

is the educated, highly-skilled workforce that it will employ. This workforce in question,

also referred to as the creative class, is drawn to regions that have ample amenities and

participatory lifestyle activities.xvixvii Trinity Groves presents a first-of-its-kind collection

of amenities and activities that may attract creative class members interested in living an

epicurean lifestyle in a location devoted to arts and culture.


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Dallas already leads many cities in terms of attracting a younger demographic, but

despite its reputation as a location rife with restaurant options, it still doesnt have a

sophisticated epicurean scene like those found in other magnets for young creative

professionals such as Portland, Brooklyn, and San Francisco.xviiixix Trinity Groves is a

substantial step in that direction. Trinity Groves may act as an intra-regional magnet for

the creative class who might otherwise eschew living in the city. In broader geographic

terms, and in a time when it is not uncommon for workers to be highly mobile, Trinity

Groves may also attract or retain those that would consider Oklahoma City, Houston, or

Austin as a home base.

Trinity Groves functioning as an amenity attractive to an educated, highly-skilled

workforce is only one part of the overall story. The Restaurant Concept Incubator

program that is the cornerstone of the project may be a catalyst for a larger culinary

industry cluster. Clusters are geographic concentrations of interconnected companies

and institutions in a particular field with the most well known being the technology

cluster in Silicon Valley. xx Clustering encourages growth from within due to a unique

balance of competition and cooperation.

One of the most important dynamics of clustering is the innovation that springs

from the energy of everyone working on similar projects both in the traditional settings of

the workplace and informal third spaces like bars, restaurants, and music venues.

Silicon Valleys success as a region where continuous innovation blossomsleading to

several decades of growth is a direct result of a collaborative culture valuing the

achievement of an industry on par with the success of individual firms.xxi The nimble

and flexible networks that develop among entrepreneurs, employees, and investors are


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V. Conclusion

The construction and operation of Trinity Groves will offer significant economic

and fiscal benefits to Dallas County and the City of Dallas. With estimates north of $3

billion in direct economic impact associated with the projects completion, and an annual

post-completion economic impact estimated in the $350 million range, the county, city,

and various taxing jurisdictions stand to benefit substantially from the project. Despite

these numbers, it should be noted that potential impacts are only one part of the overall

story of how Trinity Groves fits into Dallas urban economy.

Trinity Groves represents an opportunity for Dallas to create both a space for the

enjoyment of the culinary arts as well as to foster continuous innovation in them. While

there are many examples of successful arts and culture led urban redevelopment projects,

to date a food-based project of this magnitude has not been completed. Dallas stands to

gain not only an amenity unparalleled in other parts of the country but the infrastructure

and the incubator needed to grow a new economic cluster. Trinity Groves will not only be

a desirable place to live and play for the DFW region but an epicenter for continuous

innovation and business in the nations culinary landscape.


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Appendix

A. Applicable State and City Incentive Programs

The state of Texas is a decidedly pro-business state and as such offers many

programs for economic development. The Trinity Groves urban redevelopment project

could benefit from several programs and what follows is a brief description of potentially

applicable programs.

Texas: Texas Enterprise Fund (TEF)

The $190 million Texas Enterprise Fund is the largest incentive fund in the

nation. It is used statewide to help close deals for companies that will bring investment to

Texas and create new jobs. Although the primarily function of the fund is to attract new

business to the state, it also assists with Texan firms contemplating substantial expansion.

In either case, the fund is used when a firm in question has at least one other offer to

relocate to another state. Individual award amounts can be significant and are based on

the number of jobs created, the timeframe within which they are created, and the wages

the jobs will pay. According to the Office of the Governor, In the past, awards have

ranged from $194,000 to $50 million.

Texas: Texas Enterprise Zone Program

The Texas Enterprise Zone Program (TEZP) is designed to be an economic

development tool connecting local communities with the State of Texas. The goal of the

program is to promote job creation and private investment that will assist economically


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distressed areas of the state. The TEZP allows firms to reduce their tax burden by

eliminating state and local sales taxes for companies creating jobs in designated areas.

Firms investing a minimum amount of capital and creating a specified number of jobs are

eligible to apply for refunds of state sales and use taxes initially paid on machinery and

equipment, building materials, taxable services, and electricity or gas purchased for use

in the business. Refunds are provided when firms create jobs that meet pre-determined

wage criteria. Tax benefits can range from $2,500 to $7,500 per full-time, permanent job

created or retained over a five-year period. These need not be manufacturing enterprises

that would otherwise be eligible for the sales and use tax exemption. At least 25 to 35

percent of new employees must live within the enterprise zone (or be economically

disadvantaged) depending on if the firm is located within or outside of the enterprise

zone.

Dallas: Tax Increment Financing Districts

Trinity Groves falls into Dallas recently approved Sports Arena TIF District:

West Dallas Sub-District and as such is immediately eligible for an estimated $14.2

million dollars in public infrastructure and streetscape improvements this funding will

be generated by redistributing 10% of the incremental tax revenue generated from the

existing (and expanded) Victory sub-district. Going forward, over the next 15 years, the

West Dallas Sub-District is projected to provide over $360 million dollars in taxable

value for the TIF district, the majority of which can be attributed to the Trinity Groves

project.xxvi


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Dallas: Economic Development Grants

To attract new companies or assist existing companies with expansion plans, the

City of Dallas offers grants in lieu of tax abatement or to help defray project costs. Items

covered include land purchase, building and public infrastructure costs, development and

right of way abandonment fees, loan guarantees, and training and relocation costs.

Dallas: Tax Abatements

In the case of historic properties designated as Dallas landmarks with restoration

plans set in place, city real property taxes may be abated for a period up to 10 years. The

City of Dallas also provides tax abatement on the value added to real property or new

business personal property.

Dallas: New Markets Tax Credit Program

The New Markets Tax Credit (NMTC) program is a federal program operated by

the Department of Treasury that provides opportunities for new development in

traditionally underserved areas. The program provides NMTC investors with a 39%

federal tax credit payable over seven years. These investments are partnered with

additional funds for businesses and real estate development in designated Low Income

Neighborhoods. The Dallas Development Fund (DDF) is a non-profit organization

created by the City of Dallas in 2009 in order to retain a NMTC allocation. The DDF was

awarded a $55 million allocation under the NMTC program.


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i Currid, E. (2009). Bohemia as subculture; Bohemia as industry.Journal of Planning Literature,23(4): 368-382.

ii Seman, M. (2010). How a music scene functioned as a tool for urban redevelopment: A case study ofOmahas Slowdown project. City, Culture and Society, 1(4): 207-215.

iii Seman, M. (September 19, 2011). How art, culture, and community drove transit oriented developmentin Santa Fe. The Atlantic: Cities. Accessed November 13, 2012: http://www.theatlanticcities.com/arts-and-lifestyle/2011/09/railyard-how-art-culture-and-community-drove-transit-oriented-development-santa-fe/111/

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