A Tale of Two Cities: A Case Study on the Use of Tax Increment Financing as an Economic Development Tool in Texas
Abstract
In looking at the variety of cities across the great State of Texas, you will find them in many different conditions. Some are small and undeveloped, with great opportunities for economic growth, while others have seen economic greatness and now suffer from economic decline. Regardless of the condition of the city, this paper explores the opportunity that cities have to ignite economic health and bring financial stability to a district within the city or even the city as a whole.
This paper reviews two cities that have used Tax Increment Financing, an economic development tool, to develop and redevelop areas of their cities that held huge potential for growth. For Frisco, Texas, it was the opportunity to spur economic growth that would lead to the development of the entire city. For Fort Worth, Texas, it was the opportunity to revitalize and develop a thriving modern community in the heart of their historic downtown.
As this paper will show, Tax Increment Financing is a flexible resource that can be used in many different ways to address an array of economic development concerns cities may encounter. Understanding the different ways Tax Increment Financing can be used based on the goals a city hopes to achieve is critical to the implementation and the success of a TIF district in the State of Texas.