Council approves Gus Thomasson TIRZ amendment to fund corridor study and site work

The City Council unanimously approved a second amended project plan and financing plan for Tax Increment Reinvestment Zone (TIRZ) No. 8, the Gus Thomasson zone. Ted Chen, the city’s finance director, told council the amendment increases the zone’s total estimated project costs by $185,000 to fund a North Gus Thomasson corridor study and to support potential development at a city‑owned site at 4545 Gus Thomasson; staff emphasized the amendment does not create a new tax but reallocates a portion of the incremental tax growth within the zone to pay for projects in the TIRZ.

Chen said the TIRZ was designated in 2015, expanded in 2017 and is a 20‑year financing district. The amendment keeps the zone’s participation rate at 75% and the city is the only taxing jurisdiction participating in the increment. Chen presented a conservative revenue projection that estimated incremental assessed value of about $134,000,000 over the life of the zone and projected total TIRZ revenues of approximately $10.6 million; he said the zone has collected about $1.5 million to date and that $3.2 million of project costs have already been identified, leaving roughly $7.3 million available for future projects. Chen also noted earlier zone expenditures, including a $138,000 incentive to a developer on I‑30 and a $50,000 demolition payment for an old car wash.

Council members asked timing and implementation questions. Councilmember Elizabeth Rodriguez Ross asked whether TIRZ funds could be used to study the Towne East/Motley intersection; Chen said such work would be an eligible project cost. Councilman Kenny Green moved approval of the amendment and Councilwoman Rodriguez Ross seconded; the council adopted the ordinance unanimously. Chen and council members described the corridor study as a step to test whether additional zoning or infrastructure changes could make the Gus Thomasson/Towne East area more attractive to private investment.