Dallas, Texas

Lake Highlands Public Improvement District

Frequently Asked Questions

The following questions and their corresponding answers address common inquiries regarding the creation of the Lake Highlands PID.

Q: What is the difference between a TIF (Tax Increment Financing District) and a PID (Public Improvement District)?
A: On a very basic level, a TIF is an economic development tool that utilizes public funding incentives to promote private sector investment and re-development projects along integral City corridors – boosting real estate values. A PID on the other hand is a special tax assessment agreement between the City and property owners within a specified district to fund public improvements beyond existing municipal services. Much like an HOA for homeowners, a PID helps commercial property owners and involved residential owners (see below) maintain and revitalize public/common areas within the District.
Q: What public improvements will the LH PID provide?
A: The primary goal of the LH PID is to fund added safety, security services and provide aesthetically pleasing streetscapes to help facilitate economic growth within the District and along the Skillman corridor. While the non-profit board will decide how PID funds are allocated, specific examples of service may include: security patrols, litter and graffiti management, pedestrian lighting, signage, landscape enhancements in public right of way areas and street medians, promotional communications and grant funds.
Q: What are the boundaries of the Lake Highlands PID?
A: Thephysical boundaries of the LH PID encompass a geographic area of more than 500 acres along the Skillman corridor from LBJ on the north end down to Skillman and Abrams on the south. Click here for a map outlining the actual PID boundaries.
Q: Will LH PID money be used to maintain parks within the boundary, including the parks located in the Lake Highlands Town Center?
A: PID funds may be used to maintain public parks to be enjoyed by the entire community, including park land adjoining the Lake Highlands North Recreation Center, approximately 3.5 miles of hike and bike trail extension along White Rock Trail, as well as the planned public parks at the Lake Highlands Town Center that will ultimately be deeded to the City of Dallas.
Q: Are residential property owners included in LH PID boundaries?
A: The majority of property owners within the PID boundary are classified as business / commercial entities, however, a number of condo / townhome owners are included in the PID. The City of Dallas’ PID requirements state that no more than 30% of a PID’s land area can be comprised of single-family detached residential. In the case of the proposed LH PID, the single-family detached residential land area comprises just two (2) homes.
Q: Are any exemptions allowed for property owners in the District?
A: Yes. Homestead, Over-65 and Disability Exemptions are applicable to the District.
Q: What is the assessment rate?
A: The initial assessment rate for the District is proposed at $.13 (per $100) of taxable real property value. Once created, the initial PID budget will be allocated between public safety, promotions, improvements/maintenance, and administration. As enhanced security is one of the primary goals for the District, it will represent over 65% of the initial budget. The PID budget will be enhanced as new developments are completed in the District, and those assessments are contributed into the PID.
Q: Is the PID funded solely through tax assessments?
A: No, the LH PID may receive funding through donations. In fact, other Dallas area PIDs include this source of funding in their annual operating budgets.
Q: Is there a limit on how much a property can be assessed?
A: Yes. The maximum assessment rate is limited to $0.15 (per $100 of taxable real property value). If approved for 2009, the first annual rate is expected to be $0.13 / $100 of assessed property value. The rate is likely to decrease over time as significant tax contributions generated by new development projects are captured by the PID.
Q: What is Prescott Realty Group’s involvement with the PID?
A: As the developer of the Lake Highlands Town Center, Prescott has initiated the LH PID approval process. Prescott will be the largest initial financial contributor to the PID based on its current property and development efforts within the District. Given the sizeable financial commitment made to Lake Highlands, Prescott envisions a vibrant Skillman corridor that will attract new residents and create new retail and business opportunities throughout Lake Highlands.
Q: Who will operate/oversee the LH PID?
A: The Lake Highlands Improvement District Corporation (LHID) to be established as a 501(c)(3) non-profit, and will enter into a management agreement with the City of Dallas to oversee PID operations. A full time Director and Advisory Board, comprised of PID property owners, will be responsible for the PID’s management and direction. The annual LH PID budget will be reviewed and approved by the Dallas City Council.
Q: How long will the PID be in existence?
A: The LHID will execute a management contract with the City of Dallas, which outlines the authority and responsibility of the management entity of the PID in relation to the District. This contract will remain in full force and is effective throughout the seven-year term of the District. The District may be renewed prior to its expiration by obtaining petitions under the same requirements of District creation.
Q: Will PID dollars be used to fund private developments?
A: No. A public improvement district by law can only fund/maintain public improvements. Its purpose is to provide a level of services and improvements to public areas in the District above what the City of Dallas provides.