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Council approves Lone Star development agreement and TIRZ terms for Forest Brook Boulevard
Summary
Council approved a development agreement and TIRZ arrangement with Lone Star Planned Developments LLC to finance construction of Forest Brook Boulevard through a tax-increment reinvestment zone; staff described a projected construction cost of $18 million and capped developer TIRZ payments at $50 million.
The Paris City Council approved a development agreement with Lone Star Planned Developments LLC tied to Tax Increment Reinvestment Zone (TIRZ) No. 2 to finance Forest Brook Boulevard in the Forest Brook housing development area.
City staff explained the basic TIRZ mechanics: the base property value is fixed as of Jan. 1, 2025 and 50% of the tax increment on increased property value will be deposited into the TIRZ for up to 30 years to finance the road. Staff said the developer must obtain financing within 12 months of the agreement’s effective date or may walk away; if the developer abandons the project the TIRZ would be dissolved and any funds returned to the city general fund.
Staff cited a projected construction cost for the thoroughfare of about $18,000,000 and said TIRZ revenues payable to the developer are capped at $50,000,000 to limit city exposure. Staff also noted the project’s financing will likely require county participation and that the developer has been in contact with Lamar County. The council voted to approve the agreement; the motion carried as announced (5–0).
Staff and the developer said the agreement divides the road into eastern and western segments, ties payments to completed segments, and requires engineering plans and necessary right-of-way dedication if the developer elects not to complete the western segment.
