Fort Worth considering updates that could be game changer for economic development policies
By Spencer Brewer – Staff Writer, Dallas Business Journal
Photo by Fallon Michael on Unsplash
The proposed updates include revisions to the city’s general tax abatement, an update to the Economic Development Program, or 380 program, and TIF policies. Fort Worth is also considering adopting guiding policies for the Economic Development Initiatives Fund and setting specific parameters to define innovation districts within the city.
The proposed updates are listed in an informal report to the Fort Worth City Council and will be discussed during the upcoming city council work session on Tuesday.
The proposed policies would formalize innovation districts in the city. Innovation districts are specific geographic areas where leading-edge anchor institutions and companies cluster and connect with start-ups, business incubators, accelerators and producers of marketable intellectual property, according to the documents.
Generally, innovation districts tend to focus on a specific industry or set of interrelated functions, prioritizing strategies that align real estate, land uses, and business recruitment and expansion efforts to long-term industry development needs within the district.
Currently, there is no clear grounding for innovation districts in either state or local policy and the term is becoming increasingly common in certain city programs. There also isn’t a formal policy for establishing or recognizing innovation districts.
Proposed updates to city policy include defining innovation districts and their purpose and laying out the expected role of public, private and institutional partners in support of innovation districts once established.
The proposed tax abatement policy updates include a bump in new employee salary in a given project, from $52,300 to $55,000, as well as an updated requirement to demonstrate that 30% of those employees are Fort Worth residents for any project that employs 10 or more people, according to city documents.
Another proposal would potentially adjust the maximum term of abatement and jobs required to be eligible for abatement based on the overall amount of investment.
Policy revisions to the city’s 380 program would, among other items, update the target industries for the program. Updates to the city’s TIF policy include new guidance for funds after the TIF expires, which could go to the Economic Development Initiatives Fund and tax rate reduction.
Read the entire article at Dallas Business Journal.