The Downtown Dallas Development Authority board approved the Downtown Connection tax increment finance district annual report for fiscal year 2022–23 after a staff presentation summarizing district goals, recent activity and financial capacity.

Tamara Lee (presented as "Miss Lee" in the meeting) explained the district’s history and the 2022 amendment that added the Newpark Subdistrict and increased budget capacity to support redevelopment of surface parking lots and vacant land. Lee told board members the Downtown Connection Subdistrict’s 2023 certified taxable value increased substantially from its base year and that the estimated increment available for collection in the coming year is $43,785,458; she said this increment is city-only because Dallas County previously reached its participation cap in 2019.

Lee reported that previously funded projects in the district account for roughly $400,000,000 in TIF-backed investment that helped leverage an estimated $1.2 billion in total project value. She said the district has supported 2,161 residential units, about 1,431 hotel rooms, roughly 268,205 square feet of retail, and approximately 787,180 square feet of office space across funded projects.

On the Newpark Subdistrict, Lee said the base-year value (2022) and the 2023 certified taxable value were small relative to the Downtown Connection Subdistrict and that staff has requested Dallas County participation beginning in 2027; the city is coordinating with the county representative to present that request to the county commissioners.

The report lists a districtwide budget capacity of just over $1,000,000,000 for Downtown Connection; staff reported $522,652,798 committed or spent so far and roughly $512,000,000 remaining capacity for future projects. The Newpark Subdistrict’s total collections were estimated at $213,451,451, with about $92,000,000 already committed and roughly $121,000,000 remaining.

Lee also summarized outstanding financed debt tied to prior TIF projects: principal and interest totaled about $206,972,265, of which the board was told roughly $87,000,000 had been paid and an outstanding balance of about $120,000,000 remained; staff said that balance would be retired at the expiration of the district (presentation cited a retirement date of February 1935 in the report).

Board members asked how the Downtown Development Authority’s audited financial statements relate to district accounts; CK (financial staff) explained that TIF collections are sent to a trustee (US Bank) and that the DDDA bank balance reflected in those audited statements represents funds held by the trustee or reserves required by bond covenants.

Lee noted mixed-income housing requirements added by the 2022 plan amendment: 10% of units for mixed-income in redevelopment of existing buildings, 20% for new construction, and 30% for residential projects on city-owned lots. She reported 342 affordable/workforce units among roughly 1,893 units built in the district to date (about 18%).

Board member Billy Pruitt moved approval of the Downtown Connection annual report; the motion was seconded and passed unanimously.

The board also discussed ongoing work including transportation projects related to I-30 and I-345, continued coordination with county representatives on Newpark participation, and remaining projects scheduled for payoff in the coming year.

Staff said monthly or quarterly meeting scheduling for 2024 would be discussed later in the agenda.