Van Alstyne council creates TIRZ, approves PID for Solera and amends TIRZ participation rules

Van Alstyne’s City Council on July 14 moved forward on multiple finance mechanisms for large developments: the council adopted an ordinance to create Tax Increment Reinvestment Zone (TIRS) No. 3 for the Solera project, approved creation of the related Public Improvement District (PID), and reviewed a staff recommendation to exclude the interest & sinking (I&S) portion of the tax rate from TIRS participation for future zones.

TIRZ / TERS No. 3

Staff explained the proposed TIRS No. 3 boundary would cover roughly 176 acres (including an easement along Hackberry Road) and be created under chapter 311 of the Texas Tax Code with a 35‑year term. The draft calls for city participation of 46.5% of the maintenance & operations (M&O) portion of the city’s rate; staff noted the base value to be set as of Jan. 1, 2026 and that Grayson Appraisal District must confirm the base value.

Staff presented preliminary financial estimates showing a projected full‑build taxable value of approximately $331 million and a preliminary estimate of TIRS revenue to fund project costs; staff also projected net benefits to taxing jurisdictions over time. Council adopted the creation ordinance for TIRS No. 3 by voice vote.

PID and project scope

The PID presentation described a roughly 176‑acre boundary with an estimated $28.78 million in authorized infrastructure improvements (roadway, water, sewer, drainage) to be paid through assessments and potentially supported by TIRZ funds. The PID administrator explained the process for preliminary service and assessment plans and noted assessments can be structured in several ways (upfront, through mortgage, or amortized).

Excluding I&S from participation

In a separate staff presentation earlier in the meeting, staff recommended excluding the interest & sinking (I&S) portion of the tax rate from participation in tax increment collections for redevelopment zones, aligning city policy with neighboring jurisdictions that limit TIRZ participation to the M&O rate. Staff said that change reduces the total fund available for some projects (staff cited a roughly $55,000,000 reduction as an example shown in the packet) but keeps debt responsibility and I&S proceeds dedicated to bonded indebtedness.

County participation and governance

Commissioner remarks indicated the county is reviewing possible participation for Hackberry Road acquisition or construction. Staff said the draft ordinance designates city council as the initial TIRS board but allows additional taxing entities to add a board member by amendment. Council voted to create the TIRS and the PID and approved related items by unanimous votes.

Next steps

Adoption of the TIRS ordinance establishes the boundary and preliminary project and financing plan; a final project and financing plan will be developed and must be approved by the TIRS board and then by council by separate ordinance. The PID creation sets the process in motion for subsequent assessments and public hearings.