Skip to page body Home Economic Development TOD Permitting & Zoning City Website

GENERAL PURPOSE

The City seeks to recruit new and retain existing unique, specialty retailers and restaurants that help to differentiate Carrollton from dining and entertainment venues in other communities within the Dallas Metroplex and to contribute to the City Council’s overall vision of enhancing quality of life for Carrollton’s residents. The proposed Specialty Retail & Restaurant Incentive Policy serves the community’s desires for attracting and retaining unique, quality retailers and restaurants that do not already have a strong presence in the marketplace.

ELIGIBILITY CRITERIA

Incentives are targeted to the following types of retailers and restaurants:

  1.  “Destination” retailers and restaurants that
       a.   Have the capability to attract customers from outside the community;
       b.    Do not have another existing location within a 5-mile radius; and
       c.   Fit well into the existing retail/restaurant economy to provide new and different shopping and/or dining and entertainment experiences.
       d.   Local, Regional, and National retailers or restaurants may apply if qualified under subsection (a), (b), and (c) above.
           
  2.    Expansion, second location and relocation of existing Carrollton retailers and restaurants:
       a.   Meet the criteria set in Section 1 above (subsection (1)(b) does not apply);
       b.   Expansion – added square footage must be a minimum of 50% larger than current space.
           
   3.   Developers and Shopping Center Owners leasing space to destination retailers and restaurants may apply.

 

* In order to qualify for incentives, specialty retailers and/or restaurants are required to sign a minimum 5-year lease with the Developer/Shopping Center Owner, no matter which party is the applicant and potential recipient of the incentive. Based on the value of the incentive requested, the City may require the tenant to sign a lease for a period longer than five (5) years but not to exceed fifteen (15) years.

REVIEW CRITERIA

Any request for incentives shall be reviewed on a case-by-case basis by the City Council. Their decision shall be based upon an evaluation of the following criteria, which each applicant will address in narrative form when submitting an Application for Economic Development Incentives:

Fiscal Impact

  • Anticipated direct sales tax to be generated.
  • Total number of full-time jobs brought to Carrollton. 
  • Total payroll for all FTEs. 
  • Ad valorem taxes to be generated.

Community Impact

  • Does the business satisfy/address the community’s needs for unique, quality retailers and/or restaurants?

Competitive Impact

  • The effect the project would have on existing businesses in Carrollton.
  • A list of specific businesses seen as direct competitors to the applicant. The City of Carrollton seeks first to retain existing businesses, and therefore will consider whether an applicant will compete or potentially displace an existing business.

TYPES OF INCENTIVES

  • Matching Grants:
    • The City may reimburse up to 50% of the costs of façade improvements (including signage, landscaping and lighting).
    • The City may reimburse up to 50% of the costs of tenant improvements (not including FFE – fixtures, furniture and equipment).
  • Development Fee Rebates – The City may approve the rebate of all or a portion of certain permit and development fees. 
  • Rent Assistance for up to 12 months is available to destination retailers and restaurants (not exceeding 3,500 SF) that do not have a strong presence in other locations in DFW and locate within a targeted site identified by the City: 
    • Transit Center District – see Attachment 1.
    • Shopping centers with occupancy rates below 70%. 
  • Ad Valorem Incentives – the City may offer a tax rebate for up to five (5) years and up to 50% of the City of Carrollton taxes assessed upon value of Improvements.
  • Sales Tax Rebates – the City may rebate up to One Percent (1%) of Sales and Use Tax for up to ten (10) years.

This incentive applies only to national and regional retailers and restaurants. The sales tax rebate would be paid in annual installments within ninety (90) days of the end of each twelve (12) calendar month period following the issuance of the certification of occupancy for the facility, or other commencement date if no certificate of occupancy is required. Any sales tax incentive would be limited to the extent that the City has received sales tax from taxable sales by the applicant. The City’s obligation to pay the sales tax rebate in the Agreement would additionally be conditioned upon the applicant requesting and providing sales tax documentation from the Office of the Comptroller of the State of Texas.

In the event that the applicant files an amended sales and use tax return or report with the State of Texas, or if additional sales and use tax is due or owing, as determined by the State of Texas, affecting sales tax receipts for a previous twelve (12) calendar month period, the City will be making adjustments accordingly. The City of Carrollton reserves the right to conduct an audit at any time of the applicant’s books, papers and reports, and to ensure compliance with the Incentive Agreement. Furthermore, in the event of termination of the Agreement, the City has the right to recapture any and all rebated taxes for the calendar year in which any default occurred.

The sales tax incentive will be conditioned upon:

  • Generation of a certain level of sales tax – to be determined based on type of retailer/restaurant
  • Term of occupancy: a minimum 5-year lease will be required. The term of the sales tax rebate incentive shall not exceed the term of the lease. Should the applicant request and qualify for a sales tax rebate for the maximum allowed period of 10 years, a 15-year lease will be required.

SUMMARY OF INCENTIVES

The incentives provided under this policy are granted utilizing Chapter 380 of the Texas Local Government Code. It is the policy of the City of Carrollton to customize the provisions of economic development incentives on a case-by-case basis to result in a “Win/Win” agreement for the applicant and for the City of Carrollton taxpayers. This individualized design of a total incentive package is intended to allow maximum flexibility in addressing the unique concerns of each applicant while enabling the City to better respond to the changing needs of the community. The City Council reserves the right to make exceptions to this policy as deemed necessary. Furthermore, the City reserves the right to terminate any and all Incentive Agreements should the specialty retailer and/or restaurant cease operations at any time. All incentives are subject to availability of funding. Nothing herein shall imply or suggest a guarantee of approval of any incentive request.

  Matching Grants         
 Eligible Projects  Façade
Improvements
  Tenant
Improvements
Development Fee Rebates Rent Assistance Ad Valorem  Sales Tax Rebate
Destination (Not National/Regional) Checkmark Checkmark Checkmark Checkmark  Checkmark Checkmark
National/Regional Checkmark Checkmark Checkmark Checkmark Checkmark  Checkmark
Expansion/2nd
Location/Relocation
Checkmark Checkmark Checkmark Checkmark Checkmark  Checkmark

PROCEDURAL GUIDELINES

  1. Applicant shall complete an “Application for Economic Development Incentive” as provided by the City.
  2. Applicant shall submit a narrative addressing each factor highlighted in the Review Criteria together with a Business Plan.
  3. Staff will review all documentation for completeness and accuracy. Additional information may be requested as needed.
  4. The application package will be reviewed by the City Council Re-Development Sub-Committee (“Re-Development Sub-Committee”). Applicants may be interviewed by the Re-Development Sub-Committee and any modifications to the application will be made prior to forwarding the application to the full City Council with a recommendation for approval or denial.
  5. City Council will review the recommendation of the Re-Development Sub-Committee and vote to either approve or deny the grant application.
Last updated: 7/1/2014 3:16:52 PM