Colleyville council extends and expands downtown TIF through 2055 to fund roads, parks and economic projects

Colleyville City Council approved a second-reading ordinance on Oct. 21 to extend and expand Tax Increment Reinvestment Zone No. 1 (TIF/TIRZ 1), resetting the expanded area’s base year and authorizing a planning update that the city says will fund roads, parks and other public improvements.

The ordinance passed on a 7-0 vote after a presentation from Assistant City Manager Mark Wood and the city’s TIF consultant, Natalie Ayala of Ayala Consulting. The expansion would establish a new subarea (referred to as TIRZ 1B) with a 2025 base year, allow the city to capture 100% of its future incremental real property tax growth inside the expanded boundaries, and extend the zone’s term through December 2055.

Why it matters: City staff and consultants said the TIF has funded a range of infrastructure and economic-development projects in Colleyville and that the extension would create a financing tool to support future road improvements, parks and development incentives that must be spent inside TIF boundaries. Extending the term also lets the city capture increment associated with anticipated new development over several decades.

What council approved and the financial picture - The ordinance amends the project and financing plan and formally creates an expanded area (TIRZ 1B) with a 2025 taxable-value base year. Ayala said any increment collected in the expanded area can be spent in the original TIRZ fund (they operate as one fund despite separate base years). - The city’s consultant projected new development taxable value of about $344 million by 2035 and estimated approximately $148 million in potential TIF revenue to be available through the expanded term (figures presented by the consultant during the meeting). - City participation remains 100% for Colleyville; other taxing entities’ participation (GCISD, Tarrant County College, hospital district) remains subject to their respective caps and previously adopted limits and were discussed as part of the background materials.

Limits and process details - Ayala emphasized that TIF funds may be used only for categories allowed under Chapter 311 of the Texas Tax Code and listed typical eligible categories (roadway, utility and park infrastructure, site preparation, etc.). The project and financing plan attached to the ordinance shows preliminary allocations but will be revisited and can be amended in the future with additional public hearings. - Ayala and staff noted that developers or property owners are not automatically reimbursed by virtue of investing in the TIF; any reimbursement or development agreement requires review and approval by the TIF board and city council. - Because expansion sets a new base year, the city would capture future increases over the base year value created by the expansion.

Next steps - The item was on its second reading and passed 7-0; the consultant and staff said the next procedural steps include consideration by the TIF board and a formal project-and-financing-plan action before implementation of reimbursements or development agreements.

Ending: City officials said the TIF has financed multiple prior projects, and staff recommended periodic plan updates; Ayala suggested the plan will likely need another review in roughly 10 years as development forecasts become clearer.