Tax Increment Financing Reinvestment Zone Two
In 1999, the City of Plano created a 15-year tax increment finance district (TIF) designated as Tax Increment Finance (TIF) Reinvestment Zone Number Two (Zone Two). The goal of the TIF at the time was to encourage economic reinvestment along the DART Red Line in Downtown. City officials sought economic development tools that would maximize transit oriented development, support historic preservation efforts and encourage a greater celebration of the arts and cultural heritage in Downtown Plano. The TIF continued the strategy of fostering pride in residents and making Plano a desirable place to live and do business.
Partnering with tax entities Plano Independent School District, Collin County and Collin College, the City established Zone Two with a boundary extending along the DART rail corridor from the southern city limits to approximately a half mile north of Parker Road.
Zone Two funds may be invested in public infrastructure, public facilities and other economic development projects as authorized by Texas law. A TIF Board, appointed by City Council, prepares and recommends the TIF project plan and budget.
At the time the Zone Two TIF was created, the total appraised value of property within the district was $314 million.
Today, the total appraised value has grown to more than $520 million, adding over $49 million in revenue ($520M - $314M x the tax rate). Thus far, many public improvements made possible by TIF funding have been completed. Improvements to the Courtyard Theater, Cox Building, Mendenhall Elementary School, Bird Education Center and many public infrastructure projects have resulted in over $31 million in TIF funded investment.
In 2008, City Council expanded the Zone Two boundary by including additional thoroughfares and properties that would no longer be prohibited from receiving heritage tax exemptions, if also participating in a TIF district.
The term for the initial Zone Two TIF District was to end in December 2014, but City Council voted to extend the term for an additional 15 years in May 2014. It is expected to generate an additional $20 million in revenue that will be expended on additional public infrastructure, streetscaping and projects still underway like Southern Land Downtown Addition, Rice Field, the Saigling House, 12th Street Station and Patriot Park.
Currently, only the City of Plano and Collin County participate in the Zone Two TIF.
TIF Budget (Click the image below for a downloadable PDF)
TIF #2 Boundary