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Bonham council designates two reinvestment zones to support planned development
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Summary
After presentations from MuniCap, the Bonham City Council unanimously approved ordinances establishing Reinvestment Zone Number One and Reinvestment Zone Number Two; the TIRZ structure described a Chapter 380-style rebate cap and activation only after taxable value is generated.
The Bonham City Council on Oct. 13 approved ordinances designating two reinvestment zones to support planned development, following a presentation by consultant Jennifer Sloan of MuniCap and a public hearing.
Sloan explained the mechanism the city and its development partner will use to capture future tax increments (described in the minutes as a Chapter 380-style grant). She told the council the developer may capture rebate revenue up to a capped amount and that the TIRZ timeline can end earlier if the capped amount is reached before the scheduled termination date. The city’s presentation emphasized that the TIRZ only becomes active once development begins and taxable value is generated.
City Manager Sean Pate read the ordinance captions. For Reinvestment Zone Number One, Council Member John Burnett moved and Allen Sanderson seconded the motion to approve the ordinance; the council recorded the vote as unanimous (6 - 0). For Reinvestment Zone Number Two, Burnett moved and Clark Smith seconded the motion; that ordinance also passed unanimously (6 - 0). The ordinances establish boards of directors for each zone, create tax increment funds, include findings related to zone creation, and provide termination dates; both ordnances take effect immediately upon passage according to the meeting minutes.
Questions raised by audience members during the hearings included annexation and were addressed by staff during the presentations; the minutes do not record further contested amendments or dissenting votes.