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Victoria council adopts modification to TIF District 1‑9 to expand redevelopment and fund parking
Summary
The council approved an amendment to Tax Increment Financing District 1‑9 that expands boundaries to capture additional increment for future downtown redevelopment and municipal parking projects; staff emphasized the change creates a framework but does not obligate spending now.
The City of Victoria council on July 13 adopted a modification to Tax Increment Financing (TIF) District 1‑9 to expand its boundaries and update the TIF plan so the city may capture additional tax increment from future downtown redevelopment.
Community and Economic Development Director Jen Brewington summarized the purpose of the amendment: to align the district with current redevelopment opportunities downtown and to allow tax increment revenues to support eligible redevelopment costs and municipal parking improvements. She emphasized there are no active projects tied to the expansion; the change creates an available tool for future investment.
Tammy Omdahl of Northland Securities, the city’s financial advisor on the item, presented modeled estimates. She walked the council through projected increment figures, noting that projections are estimates and that approval creates a framework rather than an obligation to spend. Omdahl said projected totals vary by horizon and assumptions: projected increment from the original development is about $5,000,000 in nominal future value in years 1–15 (approximately $3,750,000 in today's dollars for that piece alone), and the expansion raises modeled totals: she estimated approximately $14,500,000 in total projected increment in nominal dollars for years 1–15 under the modeled assumptions and about $33,200,000 in total tax increment modeled over the district's full 26‑year term (figures presented as estimates and noted to depend on development timing and valuations).
Council members asked about valuation updates, statutory deadlines and risk. Omdahl explained the modification sets a not‑to‑exceed budget for the district (a ceiling) and that the city would re‑estimate available increment nearer any actual obligation (she cited April 16, 2029 as a statutory timing consideration to obligate certain increment). She also noted that if the city issued bonds backed by future increment it would assume repayment risk.
After public hearing with no speakers, council moved and adopted the resolution approving the modified and restated TIF plan for District 1‑9.
What this means: The modification allows Victoria to capture incremental tax revenue from an expanded area for eligible redevelopment uses and municipal parking improvements; it does not commit the city to immediate spending or bond issuance and includes statutory deadlines and risk considerations that staff and council must manage.
