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Kingsville introduces TIRZ No. 3 project and financing plan; first reading set for Feb. 10
Summary
City consultants presented a project and financing plan for Tax Increment Reinvestment Zone (TIRZ) No. 3 covering about 200 acres in south Kingsville, including a projected $68 million in real property increment and an estimated $11.7 million in TIRZ revenue over 30 years; the city commission will consider the ordinance on Feb. 10.
Kingsville city officials introduced an ordinance to approve a project and financing plan for Tax Increment Reinvestment Zone No. 3, a new financing district that would redirect a share of future real property tax growth within the zone to pay for infrastructure and development incentives.
Natalie Ayala of Pettit and Ayala Consulting told the commission the proposed zone covers roughly 200 acres on the city’s south side and includes the South Wastewater Treatment Facility. The TIRZ was created in December 2024; Ayala said the base year for calculating increment is Jan. 1, 2024, the district term would be 30 years and the city’s participation rate is 50% of any real property tax increment.
Ayala provided the plan’s high-level projections: anticipated retail and hotel development within the zone could generate about $68,000,000 in taxable real property value over the district’s life, which the consultant estimated would produce roughly $11,700,000 in TIRZ revenue to be used for eligible projects. She listed eligible expenditures under chapter 311 of the Texas Tax Code, including public utilities, parking and transit improvements, street and intersection upgrades, pedestrian and streetscape enhancements, parks and open space, economic development grants and administrative costs. Ayala emphasized that being located in the zone does not guarantee public funding; property owners or developers would need to apply to the TIRZ board and the city for development or reimbursement agreements aligned with the plan.
Commissioners asked how individual property owners would be notified. Staff said the city had followed public-notice procedures and that property owners typically learn of incentives by following public notices or by approaching the city with a prospective project; staff clarified the creation of a TIRZ does not change an individual property owner’s tax liability, only how incremental tax revenue is allocated if new development occurs.
The TIRZ board recommended the plan unanimously earlier the same day; the item was presented as a first reading and the commission is scheduled to consider an ordinance adopting the project and financing plan at its Feb. 10 meeting.
Provenance: topicintro SEG 145, topfinish SEG 323
