Economic Development Committee Meeting - June 1, 2026
Economic Development Committee Meeting - June 1, 2026
Meeting Date: June 1, 2026 (convened at 1:00 p.m., recessed, reconvened at 2:48 p.m., adjourned at 4:43 p.m.)
The Economic Development Committee met to discuss several key items, including the final list of recommended Opportunity Zones (OZ 2.0), an update on the Dallas Now permitting system, informational briefings on the New Markets Tax Credit program, and a proposed tax abatement for a light manufacturing project in District 8.
Opportunity Zones 2.0 (Briefing Item A)
Staff presented a final list of 42 recommended census tracts for nomination to the governor's office for the federal Opportunity Zone program (OZ 2.0). The tracts were selected from an initial 175 eligible tracts in Dallas, refined through public comment (27 tracts received comments) and staff analysis. Estimated potential investment in these tracts is approximately $9 billion. The governor's office will score nominations on a 10-point scale (4 points project viability, 4 points local support, 2 points geographic balance/disaster area; Dallas can maximize 9 points). Submission deadline to the state is June 26, 2026.
Discussion:
- Councilmember Kadena asked about the purpose and tracking of OZ investments. Staff noted that under OZ 2.0, new reporting requirements will provide outcome data, unlike the original program.
- Councilmember Blair sought clarification on how zones attract development and whether they could bring undesirable projects. Staff acknowledged that the city cannot control all investments under the program.
- Councilmember Johnson expressed strong concern about lack of community engagement in District 4, specifically regarding tract 211 (Cedacrest area). She stated the community was not consulted and opposed the designation without proper dialogue. She characterized existing “opportunity zones” in her district as bringing gas stations, laundry, crime, and blight, not real economic development.
- Councilmember Blair echoed concerns about lack of communication with her district (District 8) regarding tracts at Redbird Mall, UNT, and Paul Quinn.
- Councilmember Gracie and others discussed the process for withdrawing tracts and adding new ones. Chair Ridley proposed a motion to approve the 42 tracts but allow council members to withdraw tracts in their district by June 15, 2026, via memo to staff. Staff indicated additions would be difficult to vet in time.
- After further debate, the motion passed with that amendment. Councilmember Johnson requested a community meeting to discuss which tracts might benefit District 4 before any withdrawal.
Key Outcome: Motion approved (vote not recorded, but no opposition stated) to forward the 42 recommended census tracts to the governor's office, with the allowance for any council member to remove tracts within their district by June 15, 2026. No additions to the list are permitted.
Dallas Now Update (Briefing Item B)
Jason Poole, Assistant Director for Planning and Development, provided a one-year update on the Dallas Now digital permit and development management platform, launched May 5, 2025. Key statistics: over 126,000 records, 35,000 customer accounts, 14,000 contractor registrations, and 213,000 inspections managed. The system integrates 15 city and external systems and connects multiple departments (Dallas Water Utilities, Parks, Transportation, Fire, etc.).
Performance Trends:
- Residential permits: Median issue days declined from ~20 days post-launch to 6 days (a 70% reduction).
- Commercial permits (new construction): Median issue days (including Q-team) were 95 days as of June 1, down from 117 in mid-May. Goal is under 100 days.
- Zoning cases: Median time from application to council consideration fell from 184 days to 128 days.
Discussion:
- Councilmember Blair asked for training to help residents and developers navigate the system, noting it is not intuitive. Staff committed to providing assistance and noted a new public portal is forthcoming.
- Councilmember Ridley emphasized the need for continued improvement to remain competitive with other cities.
- Councilmember Roth stressed the importance of both high-tech and high-touch customer service, including a case manager for large projects. Director Liu confirmed recent improvements: a dedicated intake specialist for new projects and cross-departmental coordination teams.
- Councilmember Kadena raised fee collection issues—under Dallas Now, full payment is required upfront for large projects, which can be a burden. Staff explained that the previous system also required full upfront payment, and partial payments are impractical for 50,000 annual permits, but exceptions may be made for very large projects.
- Director Liu noted that staffing cuts last year (58 positions) were too deep, and the department will request restoration of about 15-16 positions to handle upcoming major projects (convention center, hospitals, school bond). Fee collection corrections have increased revenue by ~10% over projections.
Key Outcome: Informational only; no vote needed.
New Markets Tax Credit (Briefing Items C, D, E)
Staff provided a brief overview of the New Markets Tax Credit (NMTC) program, administered through the Dallas Development Fund (a city-controlled 501c3). The program provides federal tax credits (39%) to investors in low-income census tracts. The city has $55 million in allocation (netting approximately $20 million in subsidies). Projects are vetted by a board and require council approval. No questions were raised on items D and E.
Item F – Tax Abatement for Light Manufacturing Project
Staff presented a proposed 50% tax abatement (Chapter 381 Economic Development Agreement) for a light manufacturing company locating in an existing vacant building in the inland port (District 8). The project is expected to create 166 jobs (150 required) with an average wage of $55,000 plus benefits. The abatement would reduce the city’s tax revenue by approximately $1.38 million over 10 years, but net fiscal impact is $1.52 million over the same period (benefits exceeding abatement). The project also aligns with the New Markets Tax Credit program (forthcoming).
Discussion:
- Councilmember Ridley questioned the low payback ratio, but staff noted net benefit is real and the building is currently vacant.
- Councilmember Blair expressed support after verification, emphasizing job quality, partnership with educational institutions, and only a 50% abatement (vs. full abatements). The project will also create a clawback provision if the company leaves within 10 years.
- Councilmember Roth praised the deal as aligning with city goals.
Key Outcome: Motion to forward this item to the full City Council with a favorable recommendation for the June 10, 2026 agenda was made by Councilmember Blair, seconded, and passed (no opposition).
Other Items
- Items G and H were postponed to the next Economic Development Committee meeting.
- Items D and E were informational only; no action taken.
Meeting Adjourned at 4:43 p.m.
Meeting Transcript
All right. Good afternoon. It is June 1st. The time is 1 p.m. We're calling the Economic Development Committee meeting to order. Can I get a motion for approval of the minutes? There's a motion for approval and a second. Any corrections. Seeing none, all in favor. Motion minutes are approved. We are will now go into recess and return at approximately 2 45. Thank you. All right. The time is now 2 48 and we are back in session. First briefing item, briefing item A. Thank you, Chairman. Honorable members of the Economic Development Committee. I am Kevin Spath, the director of the Office of Economic Development. And to my right is Heather Lapesca, Deputy Director. So this will be the third and final time. We'll discuss opportunity zones 2.0. Today we're presenting a list of recommended census tracts for nomination to the economic development and tourism office within the governor's office for possible designation as opportunity zones pursuant to the opportunity zone program, otherwise known as Opportunity Zones 2.0 as administered by the U.S. Department of Treasury. So at this point, I'll turn it over to Miss Lapesca to walk us through the presentation. Thank you. Next slide. Next slide. So as Kevin mentioned, we've discussed this previously in April and May. Staff is developing a list of recommended census tracts for this committee's approval prior to submission to the governor's office for consideration of opportunity zones under the OZ 2.0 program. Each governor may nominate 25% of the state's eligible census tracts to Treasury for consideration. And in Texas, the Texas uh the governor's office has created a structured nomination process which requires detailed information on each track submitted that will be reviewed on a 10-point scale by the governor's office with four points designated for project viability, which includes shovel readiness, four points for local support, which includes alignment with city plans, incentives, and programs, and then the remaining two points are awarded for geographic balance with one point for rural tracks, which the city of Dallas won't qualify for, and one point for declared disaster within the last three years, which the city would qualify for. So on that 10-point scale, the city could maximize nine points. Over the past two months, OED has been working to refine the list of eligible census tracts from the US Department of Treasury's eligible list to a reduced list of recommended tracks for submittal to the governor's office by June 26th. Next slide. So this is the base map of eligible tracks within the city of Dallas. This is what was released by U.S. Treasury. As a reminder, every eligible tract must either have a median family income of 70% or less of the uh metro median family income or a poverty rate that is 20% or higher, and a median family income that is 125% or below the median family income. So from the initial map, there are 175 eligible census tracts in the city of Dallas. Next slide. Okay. Staff then used the initial list of tracks, and we backed out tracks that are mostly located within flood zones, do not align with any city of Dallas incentive policy areas, are comprised of less than 25% commercial property or that are essentially uh single-family residential neighborhoods. After that, there are 133 census tracts remaining. Next slide. And this is the map that we brought to you at the last month's economic development committee meeting in early April. We opened a public comment period where we received comments on 27 distinct census tracts that are shown here in red. The May map also included the recommended sites that staff had identified, which are outlined in blue. Combined there were 74 census tracts at the May meeting. Next slide. So we've spent the next uh the last month refining that list of 74 tracks to doing some additional review to recommend the 42 census tracts that are seen in this map across these 42 tracks.
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