The city of Lindale will be allowed to expand an economic development zone after approval Tuesday by the Smith County Commissioners Court.

Lindale wants to grow the area of its Tax Increment Financing Zone No. 2 by 152 acres. Right now, the zone includes 263 acres north and south of Interstate 20 near Harvey Road.

A Tax Increment Financing Zone allows cities and counties to implement Tax Increment Financing, which is an economic development tool that allows those entities to capture tax revenue from the zones, according to the University of Texas at Austin Entrepreneurship and Community Development Clinic.

When a zone is formed, the amount of existing tax collections originating from inside its boundary is set as the baseline, according to the UT Austin clinic. As tax revenues increase in future years, the amount that exceeds the baseline is redirected out of a city’s general fund into the Tax Increment Financing fund for certain projects.

Lindale had a “slow start” with Tax Increment Financing when a project did not end up happening, said Lindale Economic Development Corp. President Susan Gill. The Tax Increment Financing Zone is not set to expire until the end of 2029, and by allowing Lindale to expand the area it covers, the county can aid in spurring growth, she said.

This expansion will “spur the commercial growth that we see is imminent in Lindale along the interstate,” Gill said.

“Lindale is growing really good,” Pct. 3 Commissioner Terry Phillips said.

Construction of a hotel that is using Tax Increment Financing is almost complete, Phillips added.

Commissioners also passed two resolutions during Tuesday’s meeting: April was named Child Abuse Prevention Month and Sexual Assault Awareness Month in Smith County.