Council approves expansion and amendment to TIRZ 1 to create TIRZ 1A, projecting about $154M in incremental revenue through 2055

The City Council unanimously approved an amendment to the creation ordinance for Tax Increment Reinvestment Zone (TIRZ) 1, establishing a new TIRZ 1A with expanded boundaries, a 2025 base year for new areas and a term that extends to Dec. 31, 2055.

Consultant Natalie Ayala (Petit and Ayala Consulting) told council that TIRZ 1A would encompass approximately 1,688 acres (about 917 acres in the extraterritorial jurisdiction and the remainder inside city limits) and that the 2041 projected new development taxable value for the expanded area is estimated at $996,000,000 (real property). Under the proposed model, city and county contributions combined would total approximately $154,000,000 in TIRZ revenue through the 2055 term. Ayala described permitted project categories under Chapter 311 (streets, utilities, rail/transit, pedestrian enhancements, parks, public facilities and economic development grants limited to city contributions).

Ayala explained a tiered participation model: both city and county would initially participate at 100% on new increment for the first $0–$25,000,000; after each entity reaches its $25,000,000 cap their contribution percentage would step down (city example: 100% until cap then decrease to 75%). County participation on properties outside city limits would not occur until annexation or until the parcel fell within city limits for the applicable tax year; the county will consider the companion interlocal agreement on Nov. 24.

Council members emphasized that the preliminary project and financing plan is illustrative and that individual projects would require applications to the TIRZ board and subsequent council approval. The council authorized the city manager to execute the amended interlocal agreement and adopt the ordinance amendment.