Flower Mound TIRS board reviews annual report, affirms $50 million target for proposed community arts center

The Flower Mound TIRS board on March 1 received its annual financial update, approved the report, and discussed plans to direct future TIRS (tax increment reinvestment) proceeds toward a proposed community arts center at the Riverwalk.

The board approved the annual report by unanimous vote after a presentation from Ray Watson and Mary Petty. Mary Petty, the town’s TIRS administrator with T3 Works, said the town and Denton County have executed an amended participation agreement and that the extended TIRS is expected to generate roughly $50 million for the proposed community arts facility over the next five years.

The annual report presented a snapshot of the fund. Ray Watson summarized preliminary fiscal-year results, saying the fund reported roughly $25 million in cash and investments before liabilities. A finance staff member identified as John explained auditors had not certified the fiscal-year financial statements, describing the figures as a preliminary schedule. John told the board the fund held about $25 million in cash and investments and had roughly $600,000 in pending liabilities, with longer-term interest and debt-service obligations related to town hall and library projects that reduce the immediately available balance.

Board and staff discussion focused on how much of the current balance is available now versus what will be collected under the TIRS extension. Watson and John said outstanding project commitments and debt service leave an available balance closer to $14 million today, with additional revenues expected over the five-year extension to meet debt obligations and fund the community arts facility.

Petty described the project concept and timeline: preliminary designs and a business plan supported the current budget estimate of about $50 million; the town owns a 3.5-acre Riverwalk site north of the Marriott and restaurants; an expected building footprint is roughly 40,000 square feet with a likely seating range of about 400–500 seats. The town has issued a request for qualifications for design teams; Petty said the RFQ closes March 6 and the design phase is expected to take about one year.

Board members asked about parking, whether parking structures are included in the TIRS-funded portion, and whether ancillary costs are covered. Petty and other staff said the $50 million estimate is for the building itself and that parking and other ancillary needs would be evaluated during design and in compliance with the town’s subdivision and parking regulations. Staff said the town and county plan to perform a parking analysis as the building design is developed.

Petty also explained that when the town extended the TIRS, the town’s increment was aligned with the county’s rate (reported as 80% in the presentation) and both entities’ increments step down 5% annually per the extension terms; the extension was designed so remaining and future increment would continue to pay project debt service and, after obligations, fund the arts facility.

The board approved two procedural items on the agenda: approval of meeting minutes from April 3, 2024, (approved with one abstention by Vice Chair Johnson) and approval of the annual report and associated actions (approved unanimously).

The board did not take final design approvals; staff said design selections and final budgets will return for council and county review as designs are completed.