Colleyville council hears plan to extend, expand TIF zone; no vote taken

Consultants and staff on Aug. 19 outlined a proposal to amend Colleyville’s existing Tax Increment Reinvestment Zone (TIF) to add five noncontiguous areas, extend the zone’s term and update its project and financing plan, but the City Council took no formal action.

Why it matters: The TIF has funded infrastructure and economic development projects in Colleyville since 1998. Extending and expanding the zone would let the city capture additional incremental tax value to pay for roads, median maintenance, economic development grants and other public improvements without immediately increasing the general property tax rate.

Assistant City Manager Mark Wood introduced TIF consultants David Pettit and Natalie Ayala, who reviewed the history and described the proposed amendment. David Pettit said the TIF “was created, as Mark mentioned, in 1998,” and recapped past amendments and project spending. Natalie Ayala described a proposed new designation, “TIRZ 1B,” that would add five areas and two corridors to the existing zone and said the base year for newly added areas would be Jan. 1, 2025.

Key details presented - Original creation and participation: The TIF was created in 1998 and originally covered roughly 633 acres along Colleyville Boulevard (State Highway 26). The city currently participates at 100% of its real property tax increment, and several other taxing entities have participated at varying levels since the TIF’s creation. Pettit said Tarrant County and the Tarrant County Hospital District had set participation caps that have been met; the Grapevine-Colleyville Independent School District (GCISD) participates at 100% of its maintenance & operations rate for projects specified in the original plan because the TIF began before a 1999 statutory change. - Past and present project costs: The consultants said the original project and financing plan identified about $35 million in project costs and roughly $7.9 million in GCISD improvements. A 2012 amendment added about $44 million in projects (including $17 million for economic development grants). Presently the consultants cited a total project cost in the existing plan of roughly $79 million (including operating reinvestment zone improvements). - Proposed amendment: The consultants proposed creating a TIRZ 1B (base year 01/01/2025), adding five noncontiguous areas and two corridors, and extending the terms of TIRZ 1, 1A and 1B to expire 12/31/2055. They recommended no change to the city’s 100% participation but noted the school district’s and Tarrant County College’s participation terms would not automatically be extended by a council vote; those bodies have separate authorities and timelines for participation. - Boundaries and eligibility: Ayala explained boundaries were chosen to capture parcels that could either generate increment or be eligible to receive TIF funds for public infrastructure. She emphasized that parcels should not be split between in-zone and out-of-zone area where possible, and that corridors often capture rights-of-way and adjacent areas to fund road and related stormwater improvements. - Legal/administrative limits discussed: The consultants and staff discussed limitations that affect what property may be included (for example, provisions about the percentage of a city’s taxable value or acreage that may be inside a TIF and restrictions on single-family residential acreage). Staff referenced local limits for a city “of your size” and an existing rule about not allowing more than 30% of a TIF’s land area to be used for single-family at the time of inclusion; speakers acknowledged the rules are technical and must be confirmed during plan drafting.

Council discussion and staff direction Council members and staff asked questions about timing, the TIF base year, which entities would have to approve longer participation, whether corridors could fund drainage projects, and whether specific streets or properties (for example, LD Lockett, Pool Road, Jackson, Montclair, the recreation center and Bluebonnet Memorial Park) should be included. Ayala and Pettit said road-related stormwater and right-of-way improvements adjacent to a TIF parcel could qualify for funding, while privately owned creek parcels would be harder to define for inclusion. Staff noted a missed parcel near Precinct past LD Lockett and said they would add it to consideration.

Next steps described by staff Staff and consultants proposed the following schedule if the council gives direction to proceed at a subsequent work session: return Sept. 3 with refined boundaries and projected increment estimates; hold a first reading and public hearing on Oct. 8; a second reading Oct. 21; the TIRZ board to consider a recommendation Nov. 5; and two ordinance readings later in the process to adopt an amended project and financing plan. No ordinance was introduced and no formal vote occurred on Aug. 19.

What was not decided The council did not vote to adopt or amend the TIF; no binding commitments were made about extending other taxing entities’ participation. City staff and consultants will refine maps, confirm legal limits, continue outreach with Tarrant County College and return to council with more detailed increment projections and a proposed ordinance schedule.

TIF discussion provenance Topic introduced in the meeting agenda and opened by staff; consultants presented maps and timeline and council asked for boundary refinements and a follow-up work session.