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PCDC backs changes to TIF displacement rules, including 0.25‑mile assessment and 2‑year look‑back
Summary
City staff proposed and the committee signaled support for revisions to the Tax Increment Finance policy to treat multi‑phase projects together, require a 0.25‑mile displacement impact assessment for all construction projects, add a two‑year look‑back for prior displacement, and require mitigation plans for medium/high risk scores.
Ian Benavides, deputy director of the Neighborhood and Housing Services Department, briefed the Planning and Community Development Committee on proposed changes to the city's Tax Increment Finance (TIF) policy that aim to strengthen how the city evaluates displacement risk from incentivized projects.
Benavides said the revised language would clarify that direct residential displacement includes households on a project site or within future phases controlled by the same developer, add a two‑year look‑back period to capture recent displacements before an application date, and require a displacement impact assessment (DIA) for all construction projects. "The proposed language reads that all construction projects will need to complete the city's adopted displacement impact assessment...the surrounding area will include a minimum of 0.25 mile from the boundaries of the project site and all phases that are part of that project," Benavides said.
Committee members asked for examples and clarification. Chair Munguia raised the baseball stadium project as an example of a multi‑phase development that staff previously concluded did not cause displacement; Benavides said the updated language would allow staff to consider contiguous phases (for example, stadium and associated housing) together and evaluate displacement accordingly. "So that would be something that we would take that approach from, from staff side," Benavides said.
Councilman Court asked why 0.25 mile was chosen; Benavides said that radius is the department's standard for DIAs and captures the surrounding neighborhood most likely affected, though staff could expand it in particular cases. The proposal also calls for mitigation plans when projects score medium or high on the DIA.
If PCDC approves forwarding the changes, Benavides said staff will brief affected TIRZ/TIF boards, conduct additional stakeholder outreach and bring formal language to city council for adoption in March. Committee members signaled general support and the chair said staff should appear at council on March 19 for consideration.
