Economic Incentives.

Available Investment Tools

• The following economic development investment tools are available for use by the City of Southlake for those economic development projects that meet the eligibility criteria. Not all tools are available for each project and projects may be offered more than one tool. The type and number of investment tools to be used is the sole discretion of the Southlake City Council. Investment from the City of Southlake does not preclude other state and county incentives.

• Procedural Incentives

  • Fast-Track Planning Processing: The City would work with the prospect to accommodate a zoning or site plan approval process shorter than the typical process.
  • Fast-Track Permitting: The City would work with the prospect to allow fast-track permitting with phased permit releases if desired.
  • Dedicated Inspections: The City would provide building inspectors dedicated to the construction project as deemed necessary by the prospect’s construction managers. Typically, this involves on-site accommodations for city staff.

• Financial Incentives

  • Tax Abatement: This is a tool whereby all or a portion of the increase in the value of real and/or business personal property can be exempted from taxation. Legal authority for tax abatements comes from Chapter 312 of the Texas Property Tax Code; therefore, cities must meet the provisions of the Code when using abatements.
  • Chapter 380 Economic Development Grants: This incentive option is authorized under Chapter 380 of the Texas Local Government Code. It is an agreement between the taxpayer and taxing entity to offer a variety of fee-based or tax-based incentives, grants (which may or may not be repaid), or rebates. This is a flexible option, but there are certain state law requirements that must be met in all cases.
  • Infrastructure Assistance or Reimbursement: The City provides or reimburses costs for infrastructure improvements that benefit both the City and prospective businesses.
  • Tax Increment Reinvestment Zone (TIRZ): Tax Increment Financing is a tool to finance public improvements within a defined area. The improvements should enhance the environment and attract new investment. The statutes governing tax increment financing are in Chapter 311 of the Texas Tax Code. Southlake currently has one active Tax Increment Reinvestment Zone: Southlake TIRZ #1.
  • Public Improvement Districts (PID): A PID is a defined geographical area established to provide specific types of improvements or maintenance within the area which are financed by assessments against the property owners within the area. Chapter 372 of the Texas Local Government Code authorizes the creation of PIDs by cities.
  • Fee Waivers or Reimbursements: The City of Southlake will consider a waiver or reimbursement of development fees on eligible projects.