Economic Development

Economic Development Summary

The City of Rowlett enters into economic development agreements designed to promote development and redevelopment within the City, spur economic growth, stimulate commercial activity, generate additional taxes that enhance the property tax base, and provide job opportunities for our citizens.  

The City's economic development agreements are authorized under Chapter 380 of the Local Government Code; Chapter 311 (Tax Increment Financing Act), and Chapter 312 (Property Redevelopment and Tax Abatement Act) of the Texas Tax Code.  Recipients may be eligible to receive incentives based on employment impact, economic impact, or community impact as defined in the City's Policy on Economic Development Incentives.  The City Economic Development staff also utilizes a third-party software program to measure the performance measures required for each recipient to meet and in some cases can include clawback/recapture provisions if such measures are not achieved. 

The City of Rowlett utilizes three categories of economic development agreements:

Tax Abatements - Tax Abatements under Chapter 312 of the Texas Tax Code allow the City to designate tax reinvestment zones and negotiate tax abatement agreements with applicants.  The City does not currently have any active tax abatement agreements but will consider them on a case-by-case basis for future projects.

General Economic Development - The City enters into various agreements under Chapter 380 of the Texas Local Government Code to stimulate economic development.  Agreements may rebate a flat amount or percentage of property tax received by the City; may result in fee reductions or waivers including building inspection fees or impact fees; or may make lump sum grant payments for new jobs, tenant improvements, grease traps, infrastructure improvements, or other expenses.  In fiscal year 2022, the City of Rowlett rebated $978,190.62 in taxes, equating to $15.36 per capita.  

Tax Increment Financing - The City of Rowlett has two active Tax Increment Financing zones (TIFs) under Chapter 311 of the Texas Tax Code.  The City enters into economic development and infrastructure reimbursement agreements which earmark TIF revenues for payments to developers and represent obligations over the life of the TIF or until all terms of the agreements have been met.  In fiscal year 2022, the City of Rowlett reimbursed $551,879.80 under the TIF agreements, equating to $8.67 per capita.*

*Per capita amounts based on FY2022 population of 63,671.

As shown in the charts below, the City approved three new incentive agreements during FY2022, totaling nearly $15.3 million.  Further detail about the rebates and reimbursements by type of agreement and year are shown in the last chart and its accompanying spreadsheet.