Committee briefed on plan to form Houston‑Harris County LGC to issue TIRZ bonds

At a meeting of the Houston City Council Economic Development Committee, Assistant Director Jennifer Curley of the Mayor’s Office of Economic Development briefed members on a proposal to create a Houston‑Harris County Local Government Corporation (LGC) that would allow tax‑increment revenues from the Greater Houston Tax Increment Reinvestment Zone (TIRZ) to flow into a single fund for issuing bonds.

The briefing explained the LGC would receive tax increment, pay debt service and required reserves, reimburse developer payments, cover operating costs such as trustee and financial advisory fees, and then remit any remaining funds to city and Harris County project funds. "We are seeking council's approval on creating an LGC structure that allows for increment to go into the same fund for the purpose of issuing bonds and setting up debt instruments," Curley said.

The committee was given context for the proposal. Curley said City Council originally approved creation of the Greater Houston TIRZ in 2012 to attract private investment to develop roughly 2,973 acres of vacant or underdeveloped land, old oil fields and underutilized industrial property, and an additional 4,136 acres identified as potential future redevelopment. She noted the southern section includes the NRG area and the former Astrodome site, and that a later annexation added an industrial area adjacent to the University of Houston campus.

Curley told the committee the city increased its formal participation in the Greater Houston TIRZ in 2022 to finance infrastructure improvements needed for the North Houston Highway Improvement Project and to support green space and connectivity between Downtown and neighborhoods including Second Ward, East Downtown, Third Ward, Fourth Ward and Midtown. She said the city's increased participation would also finance improvements near NRG and Highway 288.

Committee members asked for clarifications. Councilman Alcorn asked why a new LGC was necessary rather than using an existing entity; Curley replied, "Harris County cannot issue debt." Councilman Alcorn also confirmed staff's representation that the LGC would be formed solely to issue debt for the TIRZ projects. Councilman Ramirez asked whether the TIRZ areas and county‑initiated projects were entirely within the city; Curley said they are.

Curley reviewed recent plan and financing history. She said City Council approved a third amended project plan in 2023 that increased Harris County project costs and added affordable housing to the plan and that the council approved a debt authorization of $65,000,000 in early 2024. On the forthcoming council agenda, Curley said staff will submit a resolution on July 30 to create the Houston‑Harris County LGC along with bylaws to file with the Secretary of State. "Once those items are approved, we will submit other agreements that will detail the city's and Harris County's relationship with the LGC," she said.

Committee members pressed for details on project types and governance. Curley described the county's submitted projects for the $65,000,000 authorization as typical infrastructure items — pavement, sidewalks, wastewater lines and grade separations — and said she would provide larger, legible copies of the slide deck to council members. Curley said the proposed LGC board would be split between city and county appointees, with a 3‑and‑3 membership split. Asked how long the LGC would exist, Curley said, "This LGC will be in existence only until the life of the TIRZ ends. I believe the life of the TIRZ ends at 02/1942," and added that the life could be extended by City Council.

The committee did not take a vote; the item was presented for committee briefing and will return to full council on July 30 for consideration of the resolution and bylaws. Committee members requested staff provide the larger project list and the third amended project plan with details on the affordable housing element.

Materials referenced during the briefing included the third amended project plan, the 2024 debt authorization, and a slide listing county‑submitted projects for the $65,000,000 authorization. Staff said they will circulate those materials to committee members before the July 30 council agenda item.