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The City enters into economic development agreements designed to promote development and redevelopment within the City, spur economic improvement, stimulate commercial activity, generate additional sales tax and enhance the property tax base and economic vitality of the City. These programs abate or rebate property taxes and sales tax, and also include incentive payments and reductions in fees that are not tied to taxes. The City’s economic development agreements are authorized under Chapter 380 of the Texas Local Government Code and Chapter 311 (Tax Increment Financing Act) and 312 (Property Redevelopment and Tax Abatement Act) of the Texas Tax Code. Recipients may be eligible to receive economic assistance based on the employment impact, economic impact or community impact of the project requesting assistance. Recipients receiving assistance generally commit to building or remodeling real property and related infrastructure, demolishing and redeveloping outdated properties, expanding operations, renewing facility leases, or bringing targeted businesses to the City. Agreements generally contain recapture provisions which may require repayment or termination if recipients do not meet the required provisions of the economic incentives.


The City has four categories of economic development agreements:

Home Improvement Incentive Program – The purpose of this program is to provide an economic incentive under Chapter 380 of the Texas Local Government Code to encourage reinvestment in residential neighborhoods.  The property owner commits to making at least $20,000 in improvements to the residential property within 24 months of entering into the agreement.  A one-time incentive payment equal to 10 times the amount of the increase in City taxes will be paid to the property owner based on the property’s pre-construction and post-construction appraised value.  All homeowners in single-family zoned areas are eligible to participate, except those who are delinquent on their taxes or other fees.  Visit the Home Improvement Incentive Program page for more information. 

This graph shows the number of HIIP Project incentives paid during the last 5 fiscal years.

Graph showing the total incentive payments for the last 5 fiscal years.

graph showing the property value increase of HIIP Projects for the last 5 fiscal years.
 
Tax Abatements – Tax Abatements under Chapter 312 of the Texas Tax Code allow the City to designate tax reinvestment zones and negotiate tax abatement agreements with applicants.  These abatement agreements authorize the appraisal districts to reduce the assessed value of the taxpayer’s property by a percentage specified in the agreement, and the taxpayer will pay taxes on the lower assessed value during the term of the agreement.  View the Tax Abatement Policy for more information.

Tax Abatement Summary
         New
   Existing
Number of Tax Abatements in Fiscal Year 2016     0           3       
     
  Total     Per    
    Capita*
Taxes Abated in Year 1 of Active Agreements 

(2011) Blue Cross Blue Shield     $178,738        $2  
 (2010) Cisco     $193,831          $2  
 (2008) Texas Instruments     $1,419,318      $14  
Taxes Abated for the Life of Agreements to Date


  Blue Cross Blue Shield     $1,965,805      $19  
  Cisco     $726,300        $7  
   Texas Instruments     $20,763,667    $199  


Number of Jobs Created/Retained by Agreements to Date Through FY 2016 


                3,572

Total Capital Investment Received for all Active Agreements to Date
$1.496 Billion

* Based on a population of 104,300 as of January 2016

Active Tax Abatement Agreements
View agreement documents and abatement information for each tax abatement agreement. 

Graph showing the number of new and active tax abatement agreements over the last 5 fiscal years.


Graph showing the amount of taxes foregone through tax abatement agreements over the last 5 fiscal years.

General Economic Development – The City enters into various agreements under Chapter 380 of the Texas Local Government Code to stimulate economic development.  Agreements may rebate a flat amount or percentage of property taxes or sales tax received by the City, or make lump sum payments to offset moving expenses, tenant finish-outs, demolition costs, infrastructure reimbursements, redevelopment costs or other expenses. 

Chapter 380 Agreements
View agreement documents and payment information for each agreement.

Graph showing the total amount of 380 agreement payments for the last 5 fiscal years.

Tax Increment Financing – The City has adopted three Tax Increment Financing zones (TIFs) under Chapter 311 of the Texas Tax Code.  The City enters into economic development and infrastructure reimbursement agreements which earmark TIF revenues for payment to developers and represent obligations over the life of the TIF or until all terms of the agreements have been met.  These obligations are more fully described in Note 11.  Additionally, the City enters into general economic development agreements under Chapter 380 of the Texas Local Government Code which are funded with TIF resources.  

TIF Grant Agreements
View agreement documents and other information for each TIF grant agreement.

Graph showing the appraised value history of TIF Zone 1.


Graph showing the appraised value history of TIF Zone 2.

Graph showing the appraised value history of TIF Zone 3.

TIF District Reports

Annual TIF reports provide detailed updates on the activity in the City's 3 TIF districts.
2016 TIF District 1
2016 TIF District 2
2016 TIF District 3 

TIF Project Plans
Detailed project information for each TIF zone.
TIF 1 Project Plan
TIF 2 Project Plan
TIF 3 Project Plan

Governmental Accounting Board Statement 77
This statement provides guidance regarding the disclosure of taxes foregone in government financial statements.

Texas Comptroller of Accounts Economic Development Corporation Search Tool
Although Richardson does not have an Economic Development Corporation (EDC), many local government entities do. This search tool allows users to view EDC financial reports submitted to the State. The City of Richardson does not have a Type A or Type B EDC.

 

 

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Last updated: 3/27/2017 5:25:38 PM