Council directs staff to shrink downtown TIRZ boundary, keep 50% participation rate

Liberty Hill — Council members instructed staff to prepare an ordinance to modify the downtown Tax Increment Reinvestment Zone (TIRZ) to a smaller boundary concentrated closer to downtown and to retain the city's 50% participation rate, following a recommendation from the Downtown Revitalization Committee.

Consultant Casey Sklar (p3 Works) explained that an earlier county data error overstated the number of parcels and incremental value inside the zone; corrected counts reduced parcel totals from 527 to 375 and lowered the county’s estimated contribution to the TIRZ. Sklar presented modeling showing the reduced zone would produce approximately $1.8 million in increment revenue over the first 10 years (versus $2.2 million under the original boundary) and roughly $26.9–31.0 million over 30 years, depending on build‑out assumptions.

Council discussed alternatives — shrinking the boundary, reducing the city participation rate, or dissolving the zone altogether — and debated near‑term funding options such as using excess fund balance or pursuing grants to accelerate downtown projects before TIRZ revenue is available. Council consensus favored moving forward with the DRC recommendation to reduce the boundary and keep the 50% participation rate; staff were directed to draft the ordinance and bring back a final project and finance plan for council consideration. The motion to direct staff passed by unanimous vote.