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Denison council unanimously extends TIRZ No. 2 by 10 years to align with PID bonds
Summary
The Denison City Council voted unanimously July 13 to extend Tax Increment Reinvestment Zone (TIRZ) No. 2 through Dec. 31, 2073, and approved an amended project and financing plan intended to conform TIRZ terms to an updated development agreement and allow TIRZ funds to reduce Preston Harbor PID assessments.
The Denison City Council voted unanimously July 13 to extend the life of Tax Increment Reinvestment Zone No. 2 by 10 years, moving its expiration to Dec. 31, 2073, and approved an amended and restated project and financing plan to align the TIRZ with a new development agreement.
City Attorney Julie Fort told the council the amendment updates project costs and financing assumptions that were not known when the TIRZ was created in 2013. She said the change allows TIRZ dollars to be used to reduce Public Improvement District (PID) assessments for homeowners and aligns the TIRZ end date with when PID bonds are expected to retire: “So the extension of the 10 years is really a recapture of the 13 years that were kinda lost with no development happening,” Fort said.
Resident Kurt Chikowski spoke during the public hearing and urged caution. Citing city records and the original 2013 plan, Chikowski said the TIRZ is underperforming and questioned whether a full 10-year extension is in the city’s best interest. “This is an issue that will greatly impact the effort to double the size of our city,” Chikowski said, and he recommended stronger board oversight, semiannual reporting, and alternatives such as a shorter extension or adjusting the incremental rate so more dollars return to older parts of Denison.
Fort explained elements of the financing plan the council was asked to approve, including how typical property-tax flows would be split: about 68% of the maintenance and operations portion of property tax from the new development would be directed to the city’s general fund while 32% would go into the TIRZ fund for project costs and to reduce PID assessments.
Mayor Pro Tem Adams moved to approve the ordinance and the amended project and financing plan; Councilman Thorne seconded. The motion carried unanimously.
The ordinance amends the TIRZ project and financing plan to reflect current engineering estimates of infrastructure cost and to conform the TIRZ schedule to the developer’s PID financing timetable. The council did not receive additional staff-directed assignments tied to the approval during this meeting.
