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Board approves creation of Weatherford Local Government Corporation to support TIRZ projects
Summary
The TIRZ No.1 board approved Resolution R026-02 to establish the Weatherford Local Government Corporation No. 1 as a nonprofit financing vehicle to support infrastructure and development in TIRZ No.1; Ashley Seiler emphasized the LGC will remain under council control and will not obligate the city.
The Tax Increment Reinvestment Zone No. 1 board voted to approve Resolution R026-02, authorizing creation of the Weatherford Local Government Corporation No. 1 as a financing and development tool for projects within the TIRZ. The motion to create the LGC was moved by Luke Williams and seconded by Zach Smith; the board voted in favor of the resolution.
Ashley Seiler, the city’s Director of Economic Development, told the board an LGC is intended to allow the city to use tax-increment revenues and project-specific financing rather than raising the general property tax rate. "An LGC is a nonprofit entity created by the city under state law," Seiler said, adding that "an LGC does not remove council authority" and "it does not bypass transparency requirements." Seiler also noted the city has maintained a no-new-revenue tax rate for five of the last six years, with a 1¢ increase only for police and fire services.
Seiler described governance for the proposed LGC: it would be wholly controlled by the city, governed by a board appointed by the council (the mayor and the four council members were cited as the intended board makeup) and would operate in alignment with council-approved objectives. She stressed that any future use of the LGC would require council approval and that the council must approve any debt or the LGC’s annual budget.
The item drew a brief question from a council member about whether the LGC could be terminated; Seiler replied termination is possible and noted the termination provisions appear in the related agenda materials. With those clarifications complete, the board approved the resolution.
