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EDC reviews Industrial District Agreement and potential revenue changes
Summary
Staff told the board the IDA terminates 12/31/2026 and presented modeling showing a modest increase in collections under proposed terms, while noting changing residency patterns that reduce the tax capture for local cities.
The council discussed the upcoming renewal of the Industrial District Agreement (IDA), which terminates on Dec. 31, 2026. Staff presented three modeling options and said the low-growth model assumed 1.5% aggregate growth inside the IDA boundary; that model would yield an estimated $175 million increase in the three cities' revenues over the contract life, while staff noted appraisals and actual valuation gains could push that to between $300 million and $500 million under other scenarios.
Staff cautioned that the region has seen significant changes in where workers live and spend, reducing the residency dividend the cities previously captured. "Today, we're netting 51% ... of every dollar... and, actually, this next .25, we'll be below 50% for the first time," the presenter said, explaining DOW no longer requires employees to live within 30 minutes of the gates. The board discussed distributional impacts (Clute reported a smaller share of property-tax reliance on the IDA than neighboring cities) and asked staff to continue negotiations and provide clearer revenue projections.
