Business Incentives
General Purpose and Objectives of Incentives
The City of Southlake is committed to an ongoing improvement in the quality of life for its citizens through the attraction and retention of high quality development that drives a dynamic and sustainable economic environment. Southlake will, on a case-by-case basis, consider providing inducement packages as a stimulus for economic development activity including business attraction, relocation and retention.The City has established the following policy documents that provide additional information about public investment criteria and guidelines:
- Guiding Principles
- Criteria
- Target Industries
- Eligible Activities
- Exclusionary Factors
- Investment Tools
- Other Financial Policies
- ROI Considerations
- How to Apply
- Process
In carrying out its economic development objectives, the City of Southlake will adhere to the following guiding investment principles to best determine the strategic investment of its resources in eligible projects:
- Project supports comprehensive plan implementation
- Project will retain, expand, or attract targeted industries
- Project will contribute to a top-tier workforce by retaining or expanding daytime population and preferred job types
- Project includes preferred quality of life benefits such as open space preservation and project enhancements
- Public investment is performance-based and considers reasonable return on investment via direct financial return and other indirect benefits
- Investments will be made into projects sponsored by a financially-viable company in good legal standing with the City and State
- Project will make a unique or unequaled contribution to development or redevelopment efforts in the City of Southlake, due to its magnitude, significance to the community or aesthetic quality
Recommendations for investment will be based on evaluation of criteria including the following:
- Fiscal Impact
- Employment Impact
- Community Impact
- Project Eligibility Preferred Thresholds
For more information on these items please refer to the City of Southlake Policy Statement for Public Investment related to Economic Development.
The Southlake 2035 Economic Development Master Plan specifies these target industries:
- Niche Retail
- Office
- Medical and Healthcare
- Finance, Insurance and Wealth Management
- Information Technology and Media
- Biotechnology and Pharmaceuticals
Applicants are encouraged to visit www.Southlake2035.com to review the master plan for industry specifics and further detail.
Investment funds may be used for one or more of the following eligible activities to assist a targeted industry in locating in the City or to facilitate a redevelopment project:
- Capital investments related to real property construction and acquisition
- Improvements to an existing building
- On-site and/or off-site infrastructure
- Site enhancements that the City may choose to support in order to encourage upgraded aesthetics or amenities. Examples include parks and open space, public art, decorative fountains, underground utilities and enhanced landscaping
- Other purposes which bring value to the community as determined by the Southlake City Council
Even though a project might meet all of the minimum project qualifications, it will not be considered for public investment if any of the following factors apply:
- If the project would, for any reason, result in a net reduction of the ad valorem tax valuation of all facilities in the City owned by the company, or its parent, subsidiary or affiliated companies, assistance will not be provided.
- Investment will not be provided to companies not in good legal standing with the state or that have not met their obligations as businesses in the City of Southlake.
- No prior commitment to investment shall be binding if the company originally receiving the assistance assigns it to another company, unless the City has consented to such assignment in writing, as specified in an approved investment agreement.
- The financial condition of the company receiving the assistance must not be such that the ability of the company to meet its obligations is uncertain.
The following economic development investment tools are available for use by the City of Southlake for those economic development projects that meet the eligibility criteria. Not all tools are available for each project and projects may be offered more than one tool. The type and number of investment tools to be used is the sole discretion of the Southlake City Council. Investment from the City of Southlake does not preclude other state and county incentives.
- Tax abatement
- Chapter 380 economic development grants
- Infrastructure participation
- Tax Increment Reinvestment Zone
- Public Improvement Districts (PID)
- Fee waivers or reimbursement
Southlake has the following additional policies and guidelines that further define specific types of public investment.
- Tax Abatement Policy
- Economic Development Investment Fund Expenditure Guidelines
- Southlake TIRZ #1 Expenditure Guidelines
- Hotel Occupancy Tax Fund Expenditure Guidelines
Economic development office staff can provide copies of these documents and review applicability prior to submission of a request.
Each eligible project must provide a return on investment (ROI) for the public funds investment provided. The City of Southlake calculates ROI for both direct and indirect benefits. The specific ROI will be determined through analysis of:
- The project’s total capital investment and resulting taxable value generating an annual increase of property tax revenue
- The number and types of jobs to be created or retained
- The project’s estimated ability to generate direct sales tax revenue as well as indirect sales tax revenue
- The project’s estimated ability to generate overnight stays that result in direct hotel occupancy fund revenue as well as indirect revenue associated with visitors contributing to the Southlake economy
Fill out and submit a Request for Investment Application. Application forms, deadlines and meeting information can be obtained by contacting the economic development office at 817-748-8039 or by email at econdev@ci.southlake.tx.us.
A full review of the application with the economic development staff is recommended prior to submission.
A full review of the application with the economic development staff is recommended prior to submission.
Requests for public investment are facilitated by the economic development and finance staff through a process described in the “Procedure for Investment Consideration” which is provided as an attachment to the Request for Investment Application document. All proposed incentives are subject to review and comment by the Community Enhancement and Development Corporation Board and final City Council approval.
Please Note: All public investment will be considered on a project-by-project basis by applying the guidelines in this policy statement. The City is not obligated to make any investments. In considering whether or not to provide investment in a project and if so how much, the City will take into account assistance made by private sources to support the project locating in the City. The guidelines in this policy statement are only applicable to projects for which a completed Request for Investment Application has been submitted to the City’s Economic Development Department. These guidelines are subject to change, and any changes will be applied to all projects for which a final Economic Development Investment Agreement has not yet been approved by the City Council.