Trophy Club EDC reviews TIRZ fund, incentive options; staff to return with data

At the Nov. 20 meeting of the Town of Trophy Club Economic Development Corporation, staff briefed board members on the town—s tax increment reinvestment zone (TIRZ/TERS) and options for offering state-compliant incentives to commercial properties.

Speaker 1 explained that a TIRZ captures the increment in property taxes above an established base to pay for public improvements and incentives in the zone. The TIRZ for Trophy Club was created following a 2007 resolution and a 2013 ordinance; the ordinance—s plan has an expiration date of Dec. 31, 2034 unless the town council terminates it earlier. Staff also told the board that final payments on earlier developer agreements were completed in December 2024 and "we still have $70,000 left in it in our fund balance to use."

Board members and staff discussed what the TIRZ funds may be used for — public infrastructure, developer incentive agreements and administrative costs — and the legal limits: the TIRZ board cannot issue bonds, impose new taxes or exercise eminent domain, and the final project approvals rest with town council. Staff illustrated how tax-increment financing works with a numeric example and said town and county participation can be combined under intergovernmental agreements where appropriate.

The EDC then reviewed state-authorized incentive tools that staff included in the meeting packet. Speaker 1 cited Texas Local Government Code sections for grant programs (sections 501 and 505), 380/381 agreements that permit tax or fee rebates and other intergovernmental incentives, and chapter 311 rules governing tax increment financing. Staff noted grants must include a performance agreement and a recapture clause and that incentive agreements are published in the Texas Comptroller—s database for transparency.

Speaker 1 also noted the EDC has $150,000 budgeted this year to develop incentive programs for existing commercial properties, and recommended two tracks: (1) tailor incentives to a specific incoming developer under the small area plan and (2) conduct outreach to existing commercial property owners to identify maintenance or site needs, such as drainage repairs at the Shops at Trophy Club. Board members asked staff to gather sales-tax trends and other data (with confidentiality safeguards as needed) and to return with proposals on the December agenda and additional follow-up in January.

The board also discussed whether parkland leased from the U.S. Army Corps of Engineers could generate revenue that qualifies for incentives; staff said parks staff would review the parks master plan and report back. On statutory questions such as the definition of "primary business" for eligibility, staff committed to research and to report findings to the board.

Next steps: staff will collect sales-tax and business-condition data, draft candidate incentive packages consistent with state law, and present recommendations to the EDC and town council as needed.