The City of Rowlett is committed to the promotion of high quality development in all parts of the City and to an ongoing improvement in the quality of life for its citizens. Due to this objective, the City of Rowlett will, on a case by case basis, consider providing incentives as a stimulus for development in Rowlett. As policy, any incentive consideration for a development will be provided in accordance with the procedures and criteria of this Incentives Policy document. Furthermore, any agreements are subject to approval by the Rowlett City Council.
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.
Downloadable data for Amounts of General Economic Development Incentives and TIF Reimbursements, including total and per capita is available here.
A Comprehensive Detail of All Economic Development Incentives is provided here, along with copies of each incentive agreement below.
State Comptroller's Chapter 380/381 Economic Development Agreements Online Database
Utilize this tool to gather information regarding all local development agreements in the state.
City of Rowlett Economic Development Office
Visit the City Of Rowlett Economic Development website to learn more about our economic incentives policy, gather additional information on current incentives and projects, or to contact members of our Economic Development staff.
Texas Comptroller of Public Accounts Economic Development Corporation Report search tool
Although Rowlett does not have an Economic Development Corporation (EDC), many local government entities do. This tool allows users to view EDC financial reports submitted to the State. The City of Rowlett does not have a Type A or Type B EDC.
GASB Statement No. 77 Tax Abatement Disclosures
This statement provides guidance regarding the disclosure of taxes foregone in government financial statements.