A four-acre apartment property at 9737 Forest Lane may soon become parkland, and most of the money to buy and demolish it would come from Lake Highlands' own rising property values. On Aug. 11, the Dallas Housing Finance Corporation board gave initial support to an agreement that could lead to demolition of The Baxter. The land would then go to Dallas Park and Recreation, next to the existing Audelia Urban Park, The Dallas Morning News reported on September 10, 2026. According to the same report, the Skillman Corridor Tax Increment Financing District would provide most of the purchase and demolition funds.
This deal belongs to a larger pattern. Over the past year, the Skillman Corridor TIF has paid for, or committed to, a string of projects that turn older apartment and retail sites into parks, public space and new ownership housing. The money comes from the corridor's own growth in property value. The district also has a fixed end date. If you're weighing Lake Highlands against other parts of Northeast and East Dallas, the TIF is the clearest public signal of where the corridor is headed and when.
A tax district that runs on the neighborhood's own appreciation
The City of Dallas created the Skillman Corridor TIF by Ordinance 26148 on October 26, 2005. It started January 1, 2006, and is scheduled to end December 31, 2035, with the final 2035 increment collected in 2036. Here's how it works. Property values inside the district were frozen at a base level when it was created. The taxes on any value above that base go into a fund that can only be spent inside the district.
That gap has grown large. The district's 2025 taxable value was $1,661,613,385, which is 359.2% above the adjusted base, according to the Skillman Corridor TIF annual report for FY 2024-25. The report estimated $9,269,941 in tax-year 2025 increment to be collected in 2026, with $7,720,544 from the City and about $1.55 million from the County. Richardson ISD's participation reached its cap for tax year 2024.
So when homes and commercial property along Skillman, Forest and Audelia gain value, part of the resulting tax money stays on those same corridors. The FY 2025-26 work program lists corridor walkability, traffic safety, development in the expanded boundary, and support for the Forest/Audelia park and multipurpose facility.
What the money is buying, in the order it lands
The projects below are funded or supported through the TIF, or sit inside the redevelopment pattern it is financing. They are listed roughly in the order they open.
| Project | Location | What it is | Status as last reported |
|---|---|---|---|
| Skillman Bridge | Skillman Street | Bridge replacement | Opening celebrated September 18, 2025 |
| Forest/Audelia park | Northwest corner of Forest Lane and Audelia Road | One-acre park with splash pad and playground | Opened April 2026 |
| Havenwood Heights | 9600 block of White Rock Trail | 36 single-family homes | Under construction, 2026 completion projected as of Sept. 30, 2025 |
| Highlands Village Retail and Office Redevelopment | 9715 Walnut Hill at Audelia | Car wash replaced by a two-story retail/office building | TIF agreement approved September 23, 2026 |
| Forest Audelia Recreation Center | Former shopping center at Forest and Audelia | About 10,000 sq ft recreation center | Expected to open Q1 2027 |
| White Rock Bluffs | 9500 block of Still Creek Lane | 34 single-family homes | Under construction, 2027 completion projected as of Sept. 30, 2025 |
| Lake Highlands Village townhomes | Skillman, Audelia and Royal Lane area | 85 gated townhomes | Sales planned June 2027 |
| The Baxter site | 9737 Forest Lane | Apartment demolition for parkland | Pending approvals |
The Forest and Audelia intersection is getting the most concentrated attention. Council Member Kathy Stewart told Advocate Lake Highlands in July 2026 that the new park puts green space, a splash pad and a playground within a 10-minute walk for about 8,000 people. She also said part of the former shopping center is being turned into a community center. On September 23, 2026, the Dallas City Council approved a $157,317 increase to the recreation center's construction contract, which brought it from $4,010,000 to $4,167,317.
At the same meeting, the Council approved a TIF agreement of up to $1,188,662 for TyGra Walnut Hill LLC. The project will demolish Lake Highlands Car Wash and build a two-story retail and office building with about 7,200 net leasable square feet, according to the City's announcement.
The Baxter deal, and why its structure matters
The Baxter has 239 units, according to an earlier Dallas Morning News report. It belongs to a five-property group called the BX5 Portfolio. The previous owners defaulted on a $120 million loan, and ownership passed to Voya Investment Management, which had issued the loan. At the DHFC board meeting, president David Ellis said there are about 6,000 apartments within a few blocks of the portfolio, and he described a cycle the area has seen before:
"Every time we've had these downturns there's never been a real solution. There's never been anything that we could do about it. They go to rent. They go to foreclosure. They hit a zombie state with the lenders."
The proposed deal is built to break that cycle, and its terms explain how. As the News reported, Voya would sell The Baxter to the DHFC at a loss. In return, the corporation would give Voya an equitable title partnership on the other four properties, which would carry a full tax exemption, according to board documents the newspaper reviewed. A district funded by taxable value would be paying for a deal that also exempts four other apartment properties from property tax. Ellis said the deal addresses safety and sanitation, not necessarily affordability.
None of this is final. Before the agreement can take effect, it needs:
- Secured funding for the purchase and demolition
- Approval from the Skillman Corridor TIF Board
- Approval from the Lake Highlands Public Improvement District
- Approval from the Dallas City Council, which Ellis hoped to have by the end of 2026 but said could slip into early 2027
The Skillman TIF item on the September 23 Council agenda was the Walnut Hill project, not The Baxter.
Where ownership housing fits in
In the same Advocate interview, Stewart called the redevelopment of 1970s and 1980s apartment communities the district's biggest opportunity for smart growth. She pointed specifically to "missing middle" housing such as townhomes, patio homes and other ownership options. She said property owners and developers had shown early interest but that she couldn't share details yet.
The first large townhome project is already under construction. Mattamy Homes broke ground on Lake Highlands Village on March 23, 2026: 85 gated townhomes of about 2,000 square feet each. The builder forecasts sales starting in June 2027 and first closings as early as September 2027, according to Mattamy's announcement. The site's owner, JAH Realty, sold the 85 lots to Mattamy and kept the adjoining retail center.
The single-family projects near Walnut Hill Lane and White Rock Trail are priced much higher. Robert Elliott Custom Homes is building both Havenwood Heights and White Rock Bluffs. In May 2026, White Rock Bluffs advertised homes at 9514 and 9510 Still Creek Lane for $1,949,975 and $1,979,999. Those were asking prices, not closed sales. As of July 2026, the builder still listed homesites available in both communities.
For comparison, MetroTex reported 1,413 single-family sales across Dallas County in August 2026. The median price was $369,000, down 1% from a year earlier, with four months of inventory, per its fall market summary. Those are county figures, not Lake Highlands figures. NTREIS no longer supplies the MLS-area boundary data that once allowed a clean neighborhood-level series. That makes project-by-project tracking along the corridor more useful than any single median.
A district with a deadline
The TIF's annual report puts total budgeted project costs at $112,154,273, with $32,534,557 allocated and $79,619,716 still unallocated. Cumulative collections reached $39.8 million in net present value, which is 80% of the district's $49.7 million goal. The fund received $10,664,662 in property taxes in FY 2024-25.
Those figures cover the fiscal year that ended September 30, 2025, so they're the latest official numbers, not live totals. They do show the outline. The district has a large unallocated budget, about nine years left, and a council member focused on aging apartment sites. Each new agreement, such as the Walnut Hill retail building or a future Baxter vote, will show where the next piece of the corridor changes hands. Smaller items are still at early stages, including up to $1.1 million recommended for Skillman streetscape work and $500,000 for preliminary engineering on the Church Road bridge. Neither has a published completion date.
Questions buyers ask about the Skillman Corridor TIF
Does the TIF change my property tax rate? A TIF doesn't set tax rates. It redirects part of the tax collected on value growth above the district's base into a fund for projects inside the district. For questions about a specific property's taxes, talk to a tax professional or the appraisal district.
When could The Baxter site become a park? The DHFC president hoped for City Council approval by the end of 2026, possibly early 2027. Funding, the Skillman TIF Board and the Lake Highlands PID also have to sign off first. No demolition date has been announced.
When can someone buy one of the new Lake Highlands Village townhomes? Mattamy forecasts sales opening in June 2027 and first closings as early as September 2027.
If you own along Skillman, Forest or Audelia and want to know how these projects might affect your home's value, Jenny Capritta can walk you through recent sales near each project site and how they compare. Get your free home valuation to start the conversation.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
