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Paris Council creates TIRZ No. 2 to preserve base value for Forest Brook Boulevard project
Summary
The council voted 5–0 to create Tax Increment Reinvestment Zone No. 2 to lock in base value for property in the Forest Brook subdivision so the developer can preserve tax increment for building Forest Brook Boulevard; staff cautioned that county participation and sales‑tax increment assumptions remain unresolved.
The Paris City Council voted unanimously Dec. 8 to create Tax Increment Reinvestment Zone No. 2, an action staff said is intended to preserve the developer’s base property value ahead of the new year so potential tax increment can fund construction of Forest Brook Boulevard.
Miss Harris explained the developer has already invested infrastructure in the Forest Brook subdivision and wants the city to set the TIRZ base value as of Jan. 1, 2025; if the council delayed action until 2026 the base value would instead be measured at that later date, reducing potential increment. Harris said the preliminary finance figures provided by the developer estimate roughly $15 million in tax increment generation against road construction costs in excess of $17 million, and that those developer figures assume Lamar County participation and some sales‑tax increment that the proposed ordinance does not include.
During council Q&A, staff clarified three points: the ordinance contains triggers allowing the city to dissolve the TIRZ if a development agreement or financing is not finalized within 60 days; a TIRZ does not increase taxes for property owners but segregates taxes already paid to fund a project; and although a TIRZ can run up to 30 years, the council may set a shorter term (staff said they might use a shorter term appropriate to the project). Staff also stated the current expectation is a reimbursement agreement rather than issuing bonds because the anticipated amount may be difficult to sell as bonds.
After the public hearing was opened and no one spoke, an unidentified council member moved to proceed; the motion was seconded and the ordinance creating TIRZ No. 2 passed by voice vote, motion carries 5–0.
Staff identified next steps including negotiating a development agreement and finalizing the preliminary finance plan; the ordinance includes a 60‑day window to finalize key agreements or dissolve the zone if conditions are not met.
Quote (staff): "A TIRZ does not raise anyone's taxes. It's just a means of segregating the taxes they already pay and setting some aside for a particular project," Miss Harris said.
The council did not specify an ordinance number or final finance figures beyond the preliminary estimates provided by the developer.
