Economic development financing primer: TIFs and PIDs explained to Irving commissioners

Imelda Speck, Irving’s Community and Economic Development Director, presented an overview of two financing tools the city uses to support development: tax-increment financing (TIF/TIRZ) and public improvement districts (PIDs).

“Reinvest the growth,” Speck said, explaining the core TIF concept: the increment above a base-year property value is captured and used for eligible public improvements within a designated TIRZ under Texas Tax Code Chapter 311. She illustrated the mechanism with a base-value example, noted typical TIF terms of 20–40 years, and said TIF funds in Irving have paid for major projects such as promenade improvements and the Irving Boulevard reconstruction.

On PIDs, Speck said the model relies on property owners in a defined district voting to assess themselves to fund public improvements or services; PID assessments are separate from the property tax rate and can be structured to repay bonds issued for infrastructure work. She described how PIDs and TIFs can overlap in a capital stack and noted in Irving three residential TIFs have historically paired with PIDs.

Speck listed Irving’s six TIFs (TIF 1 Las Colinas, TIF 2 Irving Boulevard, TIF 3–5 residential TIFs in North Irving paired with PIDs, and TIF 6 for the former stadium site). Commissioners asked about boundary expansion, opt-in/opt-out for property owners and eligibility for payments to private development; Speck said expansions and changes go to the TIF board and City Council and that a given TIF’s project and financing plan determines what projects are eligible and whether Chapter 380 incentives apply.

Speck said staff can provide a list of projects reimbursed by TIFs and clarified that TIFs do not automatically increase property tax rates; PIDs are separate annual assessments paid by properties within the PID boundaries.