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Council adopts second reading to annex Atterbury area into Tier 3 growth zone
Summary
On second reading the council approved annexation of the Atterbury/I‑27 area into a Tier 3 growth zone, authorizing inclusion in a pooled tax‑increment style mechanism to support infrastructure in the area.
The Amarillo City Council adopted an ordinance on second reading to annex land near I‑27 and Sundown (the Atterbury area) into a Tier 3 growth zone intended to support long‑term infrastructure and development.
Council discussion focused on what the Tier 3 designation does: tax revenues generated by new development in the zone flow into a pooled fund to reimburse infrastructure investments for the area rather than being redirected outside the zone in the immediate term. Staff and council described the tool as one of the city’s growth mechanisms that lets private developers and project proponents build needed water, sewer and roadway infrastructure and seek reimbursement as tax revenues materialize. Sales tax from new development will continue to flow to the city with portions that fund county public‑safety districts where applicable; staff said the annexation also creates options for economic-development agreements and other tools to attract commercial uses.
During debate council members framed the designation as a long‑term growth tool for an area with planned new residential development and commercial pad sites. A staff member said a preliminary plan anticipates roughly 1,600 houses and about 160 commercial pad sites in the larger development concept for the area, numbers that council and staff discussed as the basis for long‑term infrastructure needs. The council also heard that developer reimbursement for infrastructure is contingent on the tax growth in the zone and that reimbursements do not occur unless revenues are available to support them.
Mayor and council also discussed the size of the annexed acreage and broader long‑range planning; the ordinance passed on second reading with unanimous support. The measure was identified by staff as ordinance number 216,200 on the meeting record.
Why it matters: Annexation and tiered growth-zoning decisions create financing mechanisms intended to pay for growth-related infrastructure by capturing new taxes from the area — a longer‑term tool city officials say is needed to accommodate planned residential and commercial expansion.
