The Dallas Area Rapid Transit (DART) board of directors recently approved the framework for an interlocal agreement.
The agreement will enable the agency to contribute a percentage of its sales tax to tax increment reinvestment zones that the member cities create to revitalize certain areas within DART’s service area.
“This framework provides a consistent, equitable approach that allows DART to support the economic development priorities of our member cities while preserving our financial integrity and service commitments,” Nadine S. Lee, DART president and CEO, said. “It reflects our belief in being a collaborative partner in shaping communities that are both transit-friendly and economically vibrant.”
Municipalities use tax increment reinvestment zones as an economic development tool to reinvest tax revenue that funds infrastructure and revitalization projects in designated areas. Under the newly approved ILA framework, DART automatically can participate in these zones under clearly defined terms. This helps ensure the agency’s contributions support initiatives aligned with its mission and public transit goals.
DART staff and city leaders discussed the agreement for several months for it went to the board for a vote.
ILA was developed in collaboration with member cities. It is designed to stimulate more transit-oriented development, grow transit ridership, and increase tax revenue.