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El Paso Council dissolves two TIRZ districts, redirects $2.3 million to Eastside safety projects
Summary
The El Paso City Council voted unanimously on July 8 to adopt ordinances dissolving Tax Increment Reinvestment Zone (TIRZ) No. 9 and TIRZ No. 10 and to terminate their boards of directors, freeing previously restricted tax increment funds for other uses.
The El Paso City Council voted unanimously on July 8 to adopt ordinances dissolving Tax Increment Reinvestment Zone (TIRZ) No. 9 and TIRZ No. 10 and to terminate their boards of directors, freeing previously restricted tax increment funds for other uses.
Councilman Representative Nino, who presented the ordinance, said the move is intended to honor each zone’s original purpose while returning funds to the neighborhoods that generated them. “To honor that intent and to reinvest in the very community that contributed to this fund, I have requested that $2,300,000 be allocated for the public infrastructure within District 5, especially that includes the installation of streetlights along Moundwood Drive between Ridge Beam and passing John Hayes adjacent to the Eastside Sports Complex,” Representative Nino said during the public hearing.
Nut graf: Council members described the action as a way of converting restricted TIRZ dollars into more flexible city resources while reserving portions for local infrastructure projects that directly serve the neighborhoods where the tax increments were generated.
Council discussion focused on two related items: TIRZ 9, created to support development around the Eastside Sports Complex, and TIRZ 10, which has a smaller balance and will be redirected to District 1 projects identified later. Nino said TIRZ 9 currently holds about $4.3 million; $2.3 million will remain within District 5 for streetlights and shaded canopies at the park, with the rest used to help balance the general fund and reduce debt beginning in fiscal 2026.
City staff explained the legal and administrative mechanics of winding down a reinvestment zone and reallocating any residual balances. Robert (city staff) confirmed that funds generated within a zone are ordinarily used to support public infrastructure in that zone and that language was added to the ordinance to allocate remaining balances to projects in the originating districts.
The council’s vote was unanimous. The ordinance dissolving the zones also terminates each zone’s board of directors and directs staff to carry out the reallocations and related administrative transfers.
Ending: Council members said the action will allow the city to free up funds for both neighborhood-level improvements and general fund needs, while staff will return with follow-up detail on specific projects and timing.
