City staff presented a proposal on Nov. 3 to extend and expand Tax Increment Financing (TIF) No. 2 — the I‑30/Harbor Point corridor district — and to divide the city’s tax increment so half funds corridor projects and half supports public safety operations.

What was proposed: The city would amend the creation ordinance to extend the TIF’s term from an original 2025 termination to 2045 and add adjacent properties to a new boundary layer (a "TIF 2A" with a 2025 base year for newly captured increment). Under the staff plan the city would continue to participate at 100% of the city’s increment and use the increment as follows: 50% REMAINS in the TIF to support infrastructure and development activities in the zone; 50% is transferred to the general fund to fund public safety services associated with the corridor. The draft FY2026 budget includes a $1 million transfer under this structure.

Why proponents say it’s needed: Staff said the TIF was created in 2004–05 to support development tied to the Bass Pro Shop area. That TIF under‑performed during the Great Recession and only began producing larger increments more recently. Staff argued the extension and boundary changes would protect incremental revenue from erosion under the state’s SB2/3.5% appraisal cap rules and create a predictable funding source for maintenance, public safety and corridor improvements over the next two decades.

Questions and concerns from council: Council members asked about the rationale for allocating half of the increment to public safety rather than to capital projects, how the plan interacts with Bass Pro lease timing and whether TIF funds would supplant rather than supplement other CIP projects. Staff noted the proposed split would both fund existing corridor demands (public safety and operating needs) and preserve a substantial TIF reserve for streetscape, infrastructure and redevelopment initiatives. Council also discussed why a small area near future George Bush extension was excluded from the capture boundary and why the DART Lake Ray Hubbard station parcel was included as a contingency should DART property change status.

Next steps: Staff has directed the consultant to start ordinance drafts and public notices; the calendar envisions a creation‑ordinance amendment before Dec. 31 so the city preserves the option to extend. A later, separate project and finance plan (which requires TIF Board review and a council vote) would specify projects and financing. The council did not take a final vote on the creation ordinance at the Nov. 3 work session.