Colleyville — The City Council held the first reading and public hearing Oct. 8 on an ordinance to expand the boundaries and extend the life of Tax Increment Reinvestment Zone No. 1, commonly called a TIF, to continue using incremental tax revenue to fund public improvements.

City leaders and their consultant told council members the proposal would extend the TIF 25 years — from its current 2030 termination to Feb. 28, 2055 — and add new corridor and parcel areas (labeled TIF 1B) so the city can use increment dollars for projects such as right-of-way and park site work near the recreation and senior centers. The ordinance requires a second reading, review by the TIF board and final council approval at later meetings.

The proposal would keep the City of Colleyville’s participation at 100% of its real-property increment; other taxing entities’ participation varies by base year and expires at different times under the plan. Consultant Natalie Ayala of Pettit and Ayala outlined how the TIF’s incremental revenues are captured relative to base-year values and said the amendment would add a 2025 base year for the new parcels while leaving earlier base years for the original 1998 and 2012 areas.

City staff and the consultant presented projected development scenarios that assume mixed uses — hotels, retail, office, industrial and senior housing — and estimated a potential new taxable value of about $345 million for the combined zone over the planning horizon. Using those projections, the consultant said the expanded TIF could generate roughly $147–148 million in TIF revenues available to fund eligible projects; the presentation listed the city’s share of that projection at about $117 million. The draft project-and-financing plan included a menu of eligible project categories under state law, from public infrastructure and streets to utility relocation and redevelopment incentives.

Ayala emphasized projections are market-based estimates and said the city retains discretion: if actual increment exceeds projections, the council can amend the project and financing plan, close the TIF early, or reallocate funds as needed. She also said GCISD’s participation is limited to maintenance-and-operations on certain projects and would end under its current terms in 2030; Tarrant County College participation is an ongoing topic under discussion.

Council members asked about the conservatism of earlier TIF projections and whether the 2025 projections are realistic. Ayala said projections balance conservative and aspirational assumptions and noted the plan can be amended later if growth outpaces expectations. No public comments were offered during the hearing.

The second reading and additional actions by the TIF board are scheduled for later this fall; the council must adopt the final amended ordinance by two readings under the city charter.

Why it matters: TIFs direct new tax revenue from property value increases inside the zone to pay for public improvements in that same area rather than returning that increment to taxing entities’ general revenues. Expanding and extending this TIF would give the city a financing tool to fund transportation and park projects in and near Colleyville’s commercial corridors without using the city’s general fund for those categories of capital work.

What’s next: The council scheduled a second reading; the amended project-and-financing plan will go to Colleyville’s TIF board and then return to council for final adoption, which requires two readings under the charter.