While attending the 2002 Neighborhoods, USA national conference in Houston, my favorite workshop was on Redevelopment Financing Tools in Texas. I learned about Tax Increment Financing Districts (TIFs) and Public Improvement Districts (PIDs) and Municipal Management Districts (MMGs) and Neighborhood Empowerment Zones — and that's a partial list. These were all legislatively-approved tools that cities could use to spur redevelopment. I was excited to return to Garland to learn which tools we were using. The answer: None. (We do now have two TIF districts.)
 
Almost three years ago, I learned that Grand Prairie was using PIDs in neighborhoods. The concept was almost unheard of. Since the improvements to be paid by the special district have to be public, on public property, most PIDs are in commercial areas. Grand Prairie has 15 neighborhood PIDs, 7 created for new neighborhoods and 8 created within existing neighborhoods. The special district must be approved by, essentially, a majority of the property owners. They then tax themselves for improvements in their district. The city council cannot create the district but the council is required by law to approve the budgets.
 

This unorganized neighborhood petitioned the Grand Prairie City Council to create a Public Improvement District that would fund and maintain entrance landscaping, screening walls, and speed humps.

 
I've been talking about neighborhood PIDs every since. I see it as one tool a neighborhood might use to finance improvements in their area, improvements that will enhance their property values and the quality of their neighborhood. State law allows:

We have learned from the Neighborhood Vitality process, Envision Garland, and in conversations with neighborhood leaders that many of these improvements are what neighborhoods feel they are missing. Obviously if we are having to close a library and not give raises, the city doesn't have the money to provide these amenities to a neighborhood. However, if the neighborhood wishes to create a district and pay for the improvements, those improvements and services can be had.
 
The neighborhood would need to petition the city by filing with the City Secretary. The petition doesn't have to be signed by every property owner but the minimum requirements do require two of three types of majorities:

• The owners of taxable property representing more than 50% of the appraised value in the district, and
• Owners of real property liable for assessment who:
  • Constitute more than 50% of all owners of taxable property within the district; or
  • Own more than 50% of the taxable property area within the district.

Once created, everyone owning taxable property within the district would be required to pay the additional tax.
 
The Council's Development Services Committee is currently studying PIDs. The committee and a couple staff members toured several of the Grand Prairie neighborhoods several months ago. A draft policy and ordinance could be delivered to the Council before the end of the year.
 
The tool could be used to buy and maintain property for a local park, add additional street lighting, fund sidewalks for sections that never received them, or build a walking or bike path. The primary projects in Grand Prairie were screening walls and landscaped entrances. One neighborhood built a park with a baseball diamond where neighborhood teams practiced. Because it was public property, anyone in the city could also use the park.
 
This tool won't be for everyone but it may be just what some neighborhoods need. There are pros and cons.