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Council approves increased funding and extended operations for downtown TIRZ project plan
Summary
The council held a hearing and unanimously approved an amendment to the Downtown Tax Increment Reinvestment Zone (TIRZ) plan that increases project funding, chiefly for an alleyway redevelopment, and extends funding for downtown operations through 2027.
The San Marcos City Council unanimously approved an amendment to the Downtown Tax Increment Reinvestment Zone (TIRZ) project and financing plan after a required public hearing Tuesday.
John Locke, the city’s finance director, summarized the proposal: the Downtown TIRZ board asked for an increase in the total estimated project cost by $2.8 million, of which roughly $1.6 million is an increased estimated cost for a previously approved alleyway redevelopment project. The amendment also authorizes up to $80,000 per year to support annual downtown operations, including emergency repairs and facade grants, and extends that operating funding through December 2027 — the current TIRZ end date unless the zone is extended.
No members of the public spoke at the required public hearing. Locke told council that the alleyway project’s earlier costings were produced before the pandemic and that more detailed design work produced higher contemporary cost estimates. He said the planned operating allocation is intended to stabilize the downtown services budget and cover small repairs and facade matching grants.
Why it matters: The TIRZ redirects a portion of property tax growth within the zone to pay for downtown improvements. The amendment increases the zone’s planned capital and operating commitments and sets aside dollars for continuing downtown operations through the current TIRZ expiration date.
What’s next: The council’s first-reading approval authorizes staff to execute the amendment and directs any final procedural steps needed to implement the revised project plan. The council voted 7–0 to approve the ordinance on first reading.
