TIRZ No. 2 approves Canyon Falls Village 3 development agreement

Flower Mound’s Tax Increment Reinvestment Zone No. 2 unanimously approved a development agreement for the Canyon Falls Village 3 subdivision on a motion and roll call vote.

Town staff presenter Lee Rodriguez told the board the agreement covers development of 66 single-family homes on about 27 acres and includes capital projects listed in the town master plan, notably four-lane expansions on Denton Creek Boulevard and on Mokey Road plus associated water and reuse-line work. Rodriguez said the agreement is structured to reimburse the developer for eligible capital costs and to allow the town to seek reimbursement from the TIRZ fund for those portions.

"This [agreement] provides reimbursement for certain capital projects, with the development of 66 single family homes on 27 acres," Rodriguez said, summarizing the project scope and funding approach. He described the project’s cost estimate as a little over $5.0 million, with roughly $1.3 million in impact-fee credits applied and an estimated remaining balance of about $3.7 million payable to the developer based on actual costs once completed.

Rodriguez added that Denton County has a separate agreement to pay for the Denton Creek Boulevard portion, meaning some roadway costs will be covered by the county rather than by the town or developer allocations under the TIRZ. Staff characterized the dollar figures as estimates and said any final reimbursement would be based on actual completed costs.

The presentation included a projected schedule: planning and capital work to begin this quarter, with completion expected by 2027 and the first homes estimated to be ready in July 2027, dependent on acceptance of the capital projects and construction pacing.

A board member moved to approve Item E1 as proposed; another member seconded. The clerk conducted a roll call, and the recorded votes were Aye from the named representatives; the motion passed by unanimous vote.

The board’s approval authorizes the town to enter the development agreement as described and sets the reimbursement pathway and project list that staff presented. No amendments were offered during the meeting.

Next procedural steps noted by staff include finalizing project costs after construction and processing reimbursements from the TIRZ fund consistent with the agreement and applicable agreements with Denton County.