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Receive an update on adopting a Public Facility Corporation in Farmers Branch.
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REQUESTOR:
Mayor Pro Tem Tina Bennett-Burton
BACKGROUND:
A Public Facility Corporation (PFC) is a nonprofit public entity authorized under Texas law that may be created by a municipality to finance, develop, or own facilities that serve a public purpose. PFCs are commonly used by cities to facilitate workforce or mixed-income housing, redevelopment of underutilized properties, or, in some cases, civic or infrastructure facilities.
When used for housing-related purposes, a PFC may partner with a private developer to develop or own a project that includes long-term public-benefit requirements, such as affordability or workforce-housing commitments. In certain circumstances, qualifying PFC-owned properties may be eligible for property tax exemptions, subject to statutory and contractual requirements.
Importantly, the formation of a PFC does not approve any specific development project, grant tax exemptions, or commit the City to a particular course of action. Establishing a PFC establishes a legal tool the City may use in the future, subject to City Council approval and policy direction.
A PFC is governed by a board of directors typically composed of City Council members and/or other public officials. City control is maintained through:
• Board appointments
• City-adopted bylaws and policies
• Project-specific development agreements
• Ongoing compliance, reporting, and audit requirements
All projects undertaken by a PFC would require separate City Council consideration and approval.
DISCUSSION:
City Council will receive an overview of Public Facility Corporations and discuss whether establishing a PFC would be an appropriate policy tool for Farmers Branch. The discussion is intended to focus on governance considerations, potential benefits, risks, and appropriate guardrails, not on approval of any specific project.
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ATTACHMENT(S):
1. Presentation