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Council OKs first reading of 477‑acre annexation into Amarillo amid public objections over tax‑increment ‘tier’
Summary
On first reading the council adopted Ordinance 8200 to annex a 477.36‑acre tract near I‑27 and Sundown Lane intended for a Kids Inc. development; public commenters and some council members raised concerns that the tract lies inside an existing tax‑increment reinvestment tier and that taxes from increased valuations will be held in the tier fund rather than flowing to the general fund.
The Amarillo City Council voted 4–1 on June 10 to adopt Ordinance 8200 on first reading, which would annex into the city a 477.36‑acre tract located near Interstate 27 and Sundown Lane. Planning staff said the annexation was requested by the property owners and would facilitate a planned development that includes a Kids Inc. rock sports park and future retail pads.
Brady Kendrick, planning staff, said the tract is adjacent to existing water and sewer mains and that the developer will extend utilities and right‑of‑way (including portions of Sundown Lane and Coulter Street) within 120 days of annexation as shown in the proposed service plan. He also noted the property lies within a previously established tax increment reinvestment (TIR) 'tier' area; state law and the tier agreement limit how much property‑tax revenue the city immediately captures because increases in assessed value within the tier are retained in the tax‑increment fund to finance infrastructure until the tier sunsets (staff said the tier concludes in 2042 unless extended).
During the public hearing, speakers including Mike Ford and Mike Fiser objected to the annexation timing and to the tier designation, arguing the land is largely undeveloped agricultural property that does not meet the slum/blight characteristics some associate with TIR language and that infrastructure and service costs (roads, sewer, public safety) may fall to the city despite limited near‑term tax yield. Ford asked why the properties were not annexed earlier in concert with tier formation; Fiser argued that some land valuations and exemptions deserve audit.
Legal staff and planning staff responded that the tier was adopted by council in 2022 and that the annexation process followed state law for owner‑initiated annexations; staff also noted certain parcels adjacent to the annexation would remain county enclaves. After discussion, council voted to adopt the ordinance on first reading with one council member in opposition.
What happens next: If the council votes again to adopt at second reading (scheduled for June 24 per staff), the service plan would become binding and future utility extensions and tier financing would proceed according to the negotiated terms.
