Duncan approves 16.5-year tax-increment district for new grocery, restaurant and retail development

The Duncan City Council approved an ordinance and resolution establishing Increment District No. 1 at the northeast corner of Highway 81 and Plato Road on June 9, 2026. The tax-increment financing district is intended to support a planned commercial development with a national grocery store, several restaurants and multiple retail stores.

The First Bank & Trust branch at the location is excluded from the district.

How the tax district will work

Under the approved arrangement, a portion of new sales-tax and ad-valorem-tax revenue generated within the district will be rebated to the developer. The term is expected to last approximately 16.5 years.

That means part of the future tax growth associated with the new development would be directed through the rebate arrangement during the life of the district. The plan does not describe the rebate as a new tax on Duncan residents. Instead, it ties the incentive to future revenue generated within the designated commercial area.

The developer is responsible for constructing the necessary improvements inside the district. Those improvements are part of the project’s obligations under the approved plan, rather than a commitment for the city to build them on the developer’s behalf.

Review before council approval

The project plan was reviewed by Duncan’s TIF Review Committee and Planning Commission before it reached the City Council. The city held public hearings on May 26 and June 9, 2026. The second hearing took place on the same date as the council’s approval of the ordinance and resolution establishing the district.

The council action establishes the financing district for a planned development. It does not confirm that the proposed businesses are open or that construction has begun.

The city announcement did not identify the national grocery store, restaurant operators or retail tenants by name. It also did not provide a total expected rebate amount or a construction schedule.

What the decision means for Duncan

If the planned development is built and opened, it could expand Duncan’s retail and dining options at a prominent Highway 81 intersection. The decision also means that a portion of future tax growth from the area is expected to support a developer rebate for roughly 16.5 years.

Residents, taxpayers and nearby businesses will be able to track the project through the required site improvements and the eventual development of the proposed grocery, restaurant and retail spaces. For now, the council has approved the district and its financing structure, while the commercial uses remain planned rather than completed.