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Henderson County to join City of Athens Reinvestment Zone No. 1 under 15-year participation agreement
Summary
Commissioners approved a 15-year participation agreement to join the City of Athens’ Tax Reinvestment Zone No. 1, agreeing to pay 35% of captured increment; single-family residential properties and a preexisting abatement for UT Health Athens are excluded.
Henderson County approved a participation agreement to join the City of Athens’ Tax Reinvestment Zone No. 1 (TIRZ) after staff and city officials answered commissioners’ questions about term length, exclusions and administration.
The agreement, presented by county staff member Mister Strong, would commit the county to a 15-year participation term and to contribute 35% of the tax increment above the zone’s base value, Strong said. "The length of this agreement for the county's participation is set at 15 years," he said, and "the county's obligation would be 35% of the increment minus base."
The measure matters because tax reinvestment zones, authorized under Chapter 311 of the Texas Tax Code, use increments of property tax growth within a designated area to finance public improvements intended to encourage development. Strong told the court the city of Athens created the zone in late 2024 and invited local taxing units, including Henderson County and Trinity Valley Community College, to join.
County and city officials emphasized two specific exclusions in the county’s participation: single-family residential property is excluded from the agreement, and a parcel identified as UT Health Athens on West Loop and South 19 is explicitly excluded because of a preexisting abatement agreement. Strong said the exclusion exists "because of a prior existing abatement agreement" that predated the TIRZ.
City officials said the mapped TIRZ focuses on underdeveloped areas of Athens, including the airport area. "I do view this as a way for the City of Athens, Henderson County and Trinity Valley Community College to invest in themselves," Mayor Smith said. City Manager Miss Borstad confirmed the map prioritizes areas from north Athens around the east loop to the south of the airport.
Officials also told the court they had worked with the Henderson County Appraisal District and the county auditor to align legal and financial terms and to address administrative questions staff had raised. Strong thanked appraisal-district and county staff for their assistance.
The court moved to approve the participation agreement and authorized the county judge to sign. If the agreement remains approved, the court will have a subsequent agenda item to appoint a county representative to the TIRZ board; Strong said that appointment window would remain open until May 2026.
Notes and next steps: the county’s participation would expire after the 15-year term; the record on the motion does not include a read vote tally on the record.
