Dallas Economic Incentive Development Policy

The City of Dallas Economic Development Incentive Policy, effective from January 1, 2023, to December 31, 2024, aims to foster equitable economic growth by aligning the city’s incentive programs with the goals outlined in the 2021 Economic Development Policy (EDP). This policy focuses on stimulating job creation, attracting and retaining businesses, and expanding the city’s tax base, with a particular emphasis on high-quality employment opportunities, investment in Southern Dallas and other distressed or low- and moderate-income areas, and promoting racially equitable participation in the local economy. By updating existing incentive programs, the policy seeks to address historical disinvestment and prioritize underserved communities.

A central feature of the policy is the designation of Target Areas, which correspond to state-designated enterprise zones identified based on criteria such as poverty rates and economic distress. These areas are prioritized for specific programs and incentives to encourage investment and signal the city’s commitment to equitable development. The policy outlines various incentive programs, including tax abatements and grants, designed to support projects that align with public purposes and catalyze investments that might not occur otherwise. Eligibility criteria ensure that applicants are compliant with state regulations, current on taxes, and have not defaulted on previous city agreements.

The policy also emphasizes accountability and transparency by requiring regular assessments of incentive effectiveness and alignment with the city’s equitable development goals. By focusing on historically marginalized communities and promoting inclusive economic growth, the City of Dallas aims to create a more equitable and prosperous environment for all residents. However, to fully realize these objectives, continuous community engagement and adjustments to the policy may be necessary to address emerging challenges and ensure that the benefits of economic development are broadly shared.

Bill Text: https://cityofdallas.legistar.com/View.ashx?M=F&ID=11494426&GUID=9A75D7C2-24F1-4118-B124-39EE58B1A9AB

Policy Analysis

Does the policy solution re-distribute power from mainstream institutions to impacted Black community? 

The policy’s focus on investing in distressed areas, including Southern Dallas, where many Black communities reside, is a positive step toward addressing historical inequities. By directing resources and incentives to these areas, the city acknowledges past disinvestment. However, to effectively redistribute power, the policy could incorporate mechanisms that grant Black communities direct control over certain economic development decisions, such as community-led boards or participatory budgeting processes.

Does this policy provide more decision-making power at the hands of Black communities?  

While the policy aims to promote racially equitable participation in Dallas’s economy, it does not explicitly provide Black communities with increased decision-making authority. Empowering these communities through formal roles in planning and oversight of development projects can ensure that initiatives align with their needs and priorities. Establishing advisory councils composed of community members or allocating seats for Black leaders on existing economic development committees could enhance representation and influence.

Does the policy undermine extractive economies like capitalism and restore community power around a local and regenerative economy/ primary production?  

The policy seeks to attract businesses and expand the tax base, which can lead to economic growth. However, without safeguards, such growth may perpetuate extractive economic practices that do not benefit local communities. To counter this, the policy could prioritize support for Black-owned businesses, cooperatives, and community land trusts, fostering local ownership and wealth retention. Additionally, offering incentives for businesses that commit to fair labor practices and environmental sustainability would align with Just Transition principles.

Does the policy repair past harm and uphold civil and human rights, health and environmental protections?

By targeting investments in historically underserved areas, the policy acknowledges past injustices. To further this commitment, the policy could include specific measures aimed at redressing historical harms, such as funding for affordable housing, healthcare, and education in Black communities. Ensuring that development projects do not lead to displacement and that they comply with environmental protections would uphold civil and human rights, contributing to the restoration of trust and well-being in these communities.

Read more: https://www.dallasecodev.org/DocumentCenter/View/4082/Incentive-Policy-Document

Summary sourced from: https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/A.%20Exhibit%20B_Incentive%20Policy_11072022.pdf

Developed by Natalie Rivas