A tax reduction will only be considered for the increase in valuation above the existing valuation of that property. This reduction will be a maximum of ten years. The amount and terms to be determined by factors such as: costs to the city, project’s increased valuation to the tax base, new jobs and business expansion to the city as a result of the proposed project. Minimum standards proposed for an expansion project (except projects planned for business expansion in the I-35 Freeway Corridor) are:

1. 250 jobs created or retained

2. Expansion or modernization increases the valuation of existing facility by a   minimum of 30%

3. 5-year lease, and not occupied by the owner

Facilities in the IH-35 Freeway Corridor

A tax reduction regarding expansion or modernization of existing facilities will only be considered for the increase in valuation above the existing valuation of that property. There is a maximum of ten years. New facilities may include reductions on real and personal for a maximum of ten years. Amount and terms of the reduction are determined by factors such as: costs to the city, projects increased valuation to tax base, and new jobs created by the new or expanded facility. Minimum standards for proposed expansions and new projects in the IH-35 Corridor are:

1. Locations within the Freeway Incentive Zone

2. New construction or expansion or modernization of an existing facility that increases the property valuation by at least 50%

3. 30 new jobs

4. 5-year lease, if not occupied by owner

5. Compliance with all applicable zoning requirements

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Neighborhood Retail/Commercial Reinvestment

For reinvestment (either expansion or modernization) of existing sites or facilities built over 15 years prior to the date of consideration, a tax reduction or rebate will be considered only for the increase in valuation resulting from the reinvestment, and for a maximum of 10 years. Tax reduction or rebates will only be considered for those sites or facilities located in older neighborhoods or areas throughout the city. The amount and terms of the reduction will be determined on a “case by case” basis, considering factors such as age of the facility or site, the value of the reinvestment as a percentage of the previous year’s assessed value, and the potential impact of the reinvestment project on the surrounding neighborhood.
 

Inventory Tax Reduction

New and Expanding Facilities:

The city of Carrollton may reduce the amount of inventory by a grant. This program is designed to encourage large inventory companies to relocate or expand in the city. Percentage of the grant is determined on a “case by case” basis. Total employment, inventory value, and facility value are some of the factors that determine the grant percentage. Minimum requirements are:

New Facilities:

• Minimum of $50 million annual inventory

• Create at least 200 jobs

• Facility value of a least $5 million 

Existing Companies and Expanding Facilities:

• Minimum of $40 million annual inventory

• Create at least 100 new jobs

• Expand existing facility by at least 50%

Restaurant/Office Incentive, Highlands Development

A tax incentive for new investment in sit-down restaurant or office projects in the Highlands Development will be considered for the increase valuation above the existing valuation of the property. Incentives are designed to stimulate the development of restaurants and offices for a limited number of years and in accordance with the following prescribed design and size:

1. Locations within Highlands Development

2. Minimum of 5,000 square feet of floor space

3. No drive-through windows or service

4. Maximum incentive length shall be five years

5. Maximum tax reduction shall be 30 percent

6. Must meet all zoning and other city requirements

Triple Freeport Exemption

The city of Carrollton offers Triple Freeport Exemption from all local taxing authorities, city, county and school districts. The exemption applies to inventory that is brought into Carrollton from outside Texas and then reshipped out of state within 175 days is exempt from inventory tax. Carrollton also has special taxing districts such as Valwood Industrial Park.

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Retail Redevelopment and Rehabilitation Program 

1. Performance-based Matching Grant

The Program is sponsored by the City to provide financial incentives to existing retail shopping centers and other retail facilities for enhancements and/or redevelopment.  Improvements must enhance the tax base related to the retail facilities and surrounding development.  The Program is retention-based with the goal of rehabilitating the retail facilities for aesthetic or architectural appeal.  Each application is determined on a case by case approach.

The Program is a performance-based loan or matching grant program.  If a grant is to be utilized, the City may elect to make a grant in an amount up to 100% the cost of the improvements (refer to eligible expenses below) such grant will not to exceed $1 million of public funds for each grantee.  If the City elects to make a loan it may make the loan on terms and conditions it deems appropriate.

2. Acceptable Categories of Improvements

The following are the eligible expenses:

• Upgrade or enhanced landscaping improvement costs

•  Parking lot improvement costs

• Signage upgrade costs

• Center façade improvement costs

• Center redevelopment; mixed-use/residential or office improvement costs

3. Eligibility Criteria for Eligible Retail Facilities

• The retail facility or facilities must be older than twenty (20) years.

• The property on which the retail facility or facilities is located must be in excess of 2 acres, unless a smaller acreage is approved by the City.

• Potential impact of the reinvestment project on surrounding neighborhoods.

4. Application and Approval Process

• An application for incentive must be submitted to the City's Office of Economic Development by the land owner.  The application should include a detailed description of the project including renderings or drawings of the finished project, a project budget including sources of funds and a project timetable.  The application should describe how the project will enhance the ability of the shopping retail center to attract and retain tenants.

• Project review of each application is required by staff including appropriate comments and recommendations for changes prior to submission to the city council Retail Subcommittee (the "Retail Subcommittee").

• All applications will be reviewed by the City Council Retail Subcommittee.  Applicants will be interviewed by the Retail Subcommittee and any modifications to the application will be made prior to forwarding the application to the full City Council with a recommendation for approval or denial.

• City Council will review the recommendation of the Retail Subcommittee and vote to either approve or deny the grant application.

• Grant incentives will consist primarily of cash payments payable upon successful completion of all facility improvements or redevelopment as outlined in an incentive agreement to be entered into between the City and the owner of the retail facility or facilities receiving the grant.  Loan incentives will be made upon the terms and conditions mutually agreed upon by the City and the owner of the retail facility or facilities the subject of the loan.

Download Tax Incentive Application   

Section 380 Economic Development Program

Public/ Private Agreement Program for Transit-Oriented Development

 PURPOSE:  It is the purpose of this program to provide assistance only for projects where such assistance is necessary to stimulate private investment to add further value to the project above current zoning requirements.  Accordingly, the program is available when agreements between the City and private parties that are not tax-exempt are approved by City Council prior to investment occurring.  Projects seeking economic incentives must provide written assurance that ‘but for’ the incentives sought, the proposed project would be substantially altered such that the economic returns to the city would be reduced or the project would not otherwise occur in the city. In addition, all certified LEEDs projects will be given special consideration.

 1.  CATEGORIES OF PARTICIPATION:

TAX REBATE: Temporary abatement of either real estate or personal property taxes is not available within the TIRZ district.

INFRASTRUCTURE COST PARTICIPATION:  City may pay a portion or the entire amount of the required City infrastructure (within ROWs or easements dedicated to the City).  For those projects where certain City escrow fees will be required, a waiver of such fees may be considered.  In addition, third party utility improvements may be rebated to facilitate aesthetic requirements of the Transit Center District. Participation is considered on a ‘case by case’ basis with limits outlined on the table below.

DEVELOPMENT FEE REBATES:  City may rebate a portion or the entire amount of all City fees charged in the regulation of land development.  Participation is considered on a ‘case by case’ basis with limits outlined on the table below.  Rebates are payable only after a Certificate of Occupancy is granted.

CITY-OWNED REAL PROPERTY/ PUBLIC RIGHT-OF-WAY:  The City may transfer ownership of real property at or below market rate (or City’s purchase price, whichever is less) and as required by statute.  In the case of public right-of-way, the City may rebate fees charged by the City for abandonment of public rights-of-way.    Participation is considered on a ‘case by case’ basis with limits outlined on the table below.  Rebates are payable only after a Certificate of Occupancy is granted.  Transfer of real property will occur upon issuance of building permit for a fully financed project.

2.      Eligibility Criteria:

• Project located within City’s TIRZ #1 as described in Ordinance 3034.
• Project meets the purpose of this Program and assistance is necessary to stimulate private investment to add further value to the project above current minimum zoning requirements.

      3.     Application and Approval Process:

·    An application for incentives must be submitted to the City’s Office of Economic Development by the land owner/ developer.  The application should include a detailed description of the project, including renderings or drawings of the proposed project, and a project budget including sources of funds and a project timetable.

·     Project review of each application is required by staff including appropriate comments and recommendations for changes prior to submission to the City Council Transit-Oriented Development Subcommittee (the TOD Subcommittee).

·     All applications will be reviewed by the TOD Subcommittee.  Applicants may be interviewed by the TOD Subcommittee and any modifications to the application will be made prior to forwarding the application to the full City Council with a recommendation for approval or denial.

·     City Council will review the recommendation of the TOD Subcommittee and vote to either approve or deny the application.

·    Incentives will not be granted until a successful binding incentive agreement is entered into between the City and the owner/ developer. 

4.  Table of Incentives

 * Development cost thresholds are waived for LEEDS certified projects.

TOD Incentive Application   

For further information please contact Mr. Brad Mink, Director of Economic Development, at 972-466-3391.