Staff proposes extending TIF 2 for economic development and partial general‑fund return; board review set for Aug. 20
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
City staff proposed extending Tax Increment Finance (TIF) Zone No. 2 for 20 years and programming a project plan that would return 50% of incremental TIF revenue to the general fund for public‑safety needs along I‑30 while retaining the rest for economic development.
City staff presented a proposal Aug. 16 to extend Tax Increment Finance Zone No. 2, which currently is scheduled to expire Dec. 31, 2025. The TIF was established in 2005 around the I‑30 corridor with a base valuation that has since grown substantially; historically the TIF paid debt service for Bass Pro and related projects.
What staff proposed Economic development staff recommended extending the TIF an additional 20 years and adopting a new project and financing plan that would split incremental revenue 50/50: 50% to be transferred to the general fund to help cover public‑safety costs tied to activity in the I‑30/TIF area and 50% to remain in the TIF for new economic‑development investments. For FY26 staff estimated the TIF could return about $1,059,000 to the general fund under the 50% plan and projected the extended TIF could deliver about $35 million in additional economic‑development resources over the extension period.
Process and schedule Staff outlined next steps: the TIF board is scheduled to meet Aug. 20 to consider the concept; staff will return to the council between October and November with the consultant’s boundary analysis, the project and financing plan and a formal TIF‑board recommendation. If the board recommends an extension, council would need to hold any required public hearings and consider the ordinance(s) to extend the TIF before the current expiration date.
Why staff favors extension Staff said the TIF’s tax base grew slowly for many years after the Great Recession but has accelerated since 2021 with substantial new construction and apartment development along the I‑30 corridor. A staff analysis showed the TIF now produces meaningful incremental value and that keeping the zone, with a defined project plan, would allow continued targeted reinvestment while providing some general‑fund support for public safety without relying on annual operating revenue shifts that SB2 limits.
Council action No council action occurred during the workshop; the TIF board will consider a recommendation on Aug. 20 and staff will return to the council later in the fall.