Kerrville TIRS board discusses $50,000 pilot facade-improvement grant for Terrace District

KERRVILLE, Texas — City economic development staff presented a proposal June 11 asking the Tax Increment Reinvestment Zone (TIRS) board to consider a $50,000 pilot facade-improvement grant for the Terrace District to help pay for building exteriors, signage, landscaping and parking-lot work.

Kelly Hagemeyer, the City of Kerrville economic development manager, said the program would be a reimbursable matching grant with a proposed maximum of $5,000 per business and would be limited to public-facing exterior work. “I’m coming to you to start the conversation of what a facade improvement grant would look like,” Hagemeyer said, outlining eligibility, permit requirements and a suggested application window rather than a rolling intake.

The proposal would require applicants to obtain appropriate permits and to provide proof of payment and completion for reimbursement; the city would credit up to $150 toward permit fees so that applicants need not include that amount in their match. Hagemeyer said applications could be evaluated against standards the board would later adopt and that the city staff would administer and vet applications to reduce administrative delay.

Board members and public commenters pressed staff on selection criteria and scope. One member urged minimizing “red tape” to encourage small-business participation and suggested reporting back with before-and-after photos and metrics to show return on investment. Concerns included whether multiple tenants in a single building could each receive a $5,000 match and whether residential properties inside the TIRS boundary would be eligible. Hagemeyer said the program as drafted would focus on businesses but noted zoning (for example, residential vs. residential-transition/R-T) could affect eligibility and that staff would refine rules.

Public commenter Larry Howard, who said he had experience with similar county grants, asked specifically whether sidewalks would be eligible; staff replied sidewalks were not included in this pilot because other funding sources typically cover those projects.

Board members discussed administration options, including a small informal “go team” to review applications — modeled after existing Economic Improvement Corporation processes — and whether TIRS board members should review individual applications. Staff recommended city staff evaluation to reduce delay and encourage uptake; Hagemeyer said that historically “the less red tape you have, the typically the better the program is successful.”

No formal action was taken. Board members directed staff to return with a detailed program manual, proposed standards and a suggested application timeline; they also agreed to hold a workshop for additional discussion before any vote. The board may consider the grant as part of future budget deliberations or at a standalone item once standards and funding sources are clarified.

Implementation details staff said they will bring back include a finalized eligible-works list (landscaping, signage, parking-lot repairs, painting, windows and similar exterior items), matching requirements, application deadlines (staff suggested 60 days for applications), ownership documentation for audits, and whether a single building with multiple tenants would get multiple awards or a building-level cap.

Next steps: staff will circulate a detailed draft of standards and the proposed application packet in advance of the next meeting and coordinate scheduling for a workshop to allow board members time to review and provide input before a potential vote.