El Paso assigns Transportation Reinvestment Zone funds to Camino Real RMA for Borderland Expressway phase; vote split

El Paso City Council on Dec. 17 approved a resolution to assign tax-increment funds generated by Transportation Reinvestment Zone (TRZ) Number 3 to the Camino Real Regional Mobility Authority (CRRMA) for work on the Borderland (Northeast) Expressway project. The measure passed 5-3 after several councilmembers urged caution about committing local taxpayer increments to a state highway project.

Background and council discussion The TRZ No. 3 area has generated incremental property-tax revenues as development values have risen. Staff provided figures showing the TRZ generated approximately $1.6 million in the current year and that the CRRMA already held about $2.8 million in previously transferred TRZ proceeds. If the city did not act to assign the annual increment, staff said the zone would terminate and the new incremental receipts would return to the city's general fund.

Supporters of the resolution argued that the TRZ was originally established to support the Northeast Parkway/Borderland Expressway, and that assigning TRZ proceeds to CRRMA represented local "skin in the game" to keep a multi-jurisdictional corridor moving toward construction. Proponents noted the project is expected to serve growing industrial and employment areas in the northeast, support future megasites and investments and reduce congestion on existing routes.

Opponents noted that the Borderland Expressway is a state roadway and told council that funding decisions should come from the Texas Transportation Commission and state sources; they cited large state surpluses and questioned whether local incremental tax dollars should be used for a project that TxDOT might otherwise fund. Several councilmembers emphasized other local infrastructure needs, including unpaved roads, and argued the funds might be better used inside the city.

Outcome and where the money goes Council approved the assignment of TRZ No. 3 incremental funds to CRRMA, with a 5-3 vote. The adopted action lets CRRMA apply the TRZ proceeds to the Borderland Expressway effort; staff also noted that prior transfers held by CRRMA (about $2.8 million) are already allocated to related transportation work and that any remaining TRZ proceeds at project completion would return to the city under the agreement language presented to council.

Why it matters: TRZ proceeds are locally generated incremental tax dollars tied to specific zones. How the city uses those increments determines whether funds flow into local general revenue (if a zone terminates) or are dedicated to infrastructure projects that local leaders prioritize. This vote advances a long-discussed corridor project but highlights the tension between local priorities and regional/state transportation funding.

What's next: CRRMA will continue project development for the Borderland Expressway. Council asked staff to note that, if the TRZ terminates without obligations, the incremental receipts will revert to the general fund; conversely, CRRMA retains previously transferred TRZ funds for transportation uses. Council members said they expect ongoing coordination among the city, CRRMA and TxDOT on design, funding and timing.