TIRZ No. 1 board reviews finances, discusses Zaragoza and wayfinding projects; mural authorization tabled

The Tax Increment Reinvestment Zone No. 1 board met March 11 in City Council Chambers and received a financial presentation showing available operating and bond funds, heard project updates on Zaragoza Street and downtown wayfinding, and voted to table authorization to place murals on city-owned properties until the board’s next meeting.

Finance Director Francisco Mata presented year-to-date operating and bond figures, saying the TIRZ’s operating fund position is roughly $938,043 and that about $88,000 remains available for materials, supplies and contractual services for the rest of the year. He also reported on the 2021 Certificate of Obligation (CO) bond package, stating the bond package shows roughly $1.05 million available to spend on capital projects and noted the city has made $1.5 million from a 2024 CO available for downtown capital work. Mata told the board that, based on these figures, the zone could likely bond about $1.5 million every other year without using capital set-aside funds.

Mata cautioned the board about federal arbitrage rules and spending deadlines tied to bond proceeds: “It’s an expenditure. So it’s like it goes away,” he said, meaning interest earnings on bond proceeds can be lost or become taxable if funds are not spent within the commonly referenced three-year practical window. He added that rating agencies consider whether issued debt has been spent when evaluating municipal creditworthiness.

Board members discussed project readiness and cost uncertainty. Mata and others warned that projected costs for future downtown projects were preliminary, based on probable costs from KCI, and emphasized that actual bid results can vary. Board members asked staff to move forward quickly on project design and procurement so bond proceeds are spent within the applicable timeframe.

Project updates: Staff reported Zaragoza Street work is largely complete but that a stone cap/brigadier remains outstanding while shop drawings and material production for a related element remain on a four- to six-week production schedule, according to a KPI Technologies representative. The board heard that power/communication pole locations submitted by a utilities contractor are under review so poles will not conflict with new streetscape elements and ADA routes.

On wayfinding, staff showed draft map graphics and a set of small, abstract icons for landmarks (cathedral, Plaza Theater, city hall, hotels, museums). A committee meeting with the Convention & Visitors Bureau (CVB), engineering and other stakeholders was tentatively scheduled for March 19 to finalize iconography and sign locations; staff said fabrication will follow committee sign-off. Board members asked that hotel, museum and Webb County Courthouse icons be included on the map.

On the murals program, staff reported two artists who responded to the solicitation are being considered for murals on three city-owned properties (802 Grant at Santa Ursula; 1002 Hidalgo at San Agustin; 1203 Houston next to the Hamilton Hotel). The board was told the first contracted mural (Iturbide and San Agustin) has received its initial payment and installation should begin imminently. Staff said they will return next month with formal property addresses and recommended funding amounts.

Action: The board moved to table a proposed authorization to seek Council approval for placement of two murals on city-owned properties and to authorize staff to solicit artists for those locations; the motion to table was seconded by Justin Heather and passed unanimously. Several other routine agenda motions passed with no substantive debate (minutes approval; excusal of an absent member; adjournment).

The board directed staff to circulate the financial slides and follow up with more detailed project schedules and procurement steps ahead of the next meeting so the board can ensure bond proceeds are obligated or spent within the timing constraints described by the finance director.