Page 100 - CityofKennedaleFY25AdoptedBudget

OVERVIEW: TIF #1 NEW HOPE ROAD FUND

Tax Increment Financing (TIF), authorized by Texas Tax Code Chapter 311, states local
governments can publicly finance needed structural improvements and enhanced
infrastructure within a defined area – a Tax Increment Reinvestment Zone (TIRZ) – to
encourage desired development. The tax increment is derived from the difference in appraised
value between the year in which the reinvestment zone is established (base year) and each year
the reinvestment zone is in existence.

An important element of the City's strategic plan - Imagine Kennedale 2015 - was to convert
properties in the southwestern portion of the City to residential use. The City updated the
Comprehensive Land Use Plan and created a Tax Increment Reinvestment Zone (TIRZ) to fund
off-site infrastructure improvements, namely the extension of water and sewer service,
reconstruction of New Hope Road, and the addition of hike and bike trails along Kennedale
Branch. TIRZ participation agreements with Tarrant County, Tarrant County College District, and
the Tarrant County Health District were completed in 2013. The City has not yet seen significant
development in the TIRZ but continues to cooperate with owners and prospective developers
to convert the racetrack properties. A water and sewer study to plan for the extension of the
utility services is complete.

Participants

City of Kennedale 100% -- $2,481,849 Maximum
Tarrant County 75% -- $2,481,849 Maximum
Tarrant County College District 50% -- $939,000 Maximum
Tarrant County Hospital District 50% -- $1,427,690 Maximum

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