| Item Title: | County Administration - Horizon City Tax Increment Reinvestment Zone No. 1 Participation Agreement | | Submitted By: | Jose M. Landeros, Director of Capital Planning, County Administration Department (915) 546-2215 | | Subject: | Discuss and take appropriate action regarding the County's participation in the Town of Horizon City Reinvestment Zone Number One upon final review and approval by the County Attorney's Office. (Contract No. 2022-0439) | | Background: | Tax Increment Reinvestment Zones (TIRZ) are governed by Chapter 311 of the Texas Tax Code and are used as economic development tools to foster new development and redevelopment. A TIRZ reallocates some or all of the additional, or the increment, in ad valorem property taxes in the zone for public and private investments in the zone.
The Town's Council considered and adopted an ordinance to establish the TIRZ at their regular Council meeting on Tuesday, December 8, 2020. The TIRZ is proposed to have a 30-year term and will end on December 31, 2050. The Town has requested participation from the County as well as the Horizon Regional Municipal Utility District (MUD).
The proposed Program of Work being evaluated is as follows:
| Project |
Est. Project Cost |
| Dilley & Delake Drainage Infrastructure |
$2,700,000 |
| Dilley & Delake Street Infrastructure |
$4,200,000 |
| Dilley & Delake Water and Wastewater Infrastructure |
$1,800,000 |
| Shared Use Path along Darrington Rd. |
$650,000 |
| Transit Center and Parking Lot |
$3,200,000 |
| Municipal Court |
$4,700,000 |
| City Hall |
$8,700,000 |
| Total |
$25,950,000 |
Original Background:
The Town of Horizon City initiated the development of a Comprehensive Plan to establish long-term guidance for physical development of the community. Reflecting the values of stakeholders and Town leadership, the comprehensive plan establishes a vision and goals through 2020. The plan is intended to articulate community desires for the future of the Town by establishing predictable, achievable, and affordable policies and desired future land uses.
More specifically, the Town identified Transportation & Mobility as a specific goal area to work on. Part of this conversation has involved the expansion of regional transit as well as likely developing a transit-oriented design (TOD) development in the Horizon City community. Through innovative finance tools, such as tax increment reinvestment zones (TIRZ), the Town hopes to attract private-sector investment in the area to leverage public funds. | | Fiscal Impact: | Not-to-Exceed Contribution Over 30 Years: $31,820,640.54
Net Present Value (Discounted at 6 Percent): $8,970,453.74
Note: This is based on dedicating 100 percent of the forecasted incremental tax revenue over the revised 2021 Base Year to the TIRZ for project development (see attachment "Exhibit A" of this item for further detail). | | Recommendation: | Discuss and take appropriate action regarding the County's participation in the Town of Horizon City Reinvestment Zone Number One upon final review and approval by the County Attorney's Office. (Contract No. 2022-0439) | | Prior Action: | August 1, 2022
Discuss and take appropriate action regarding the County's participation in the Town of Horizon City Reinvestment Zone Number One. (Contract No. 2022-0439)
July 25, 2022
Discuss and take appropriate action regarding participating in the Town of Horizon City's Tax Increment Reinvestment Zone (TIRZ) No. 1. (#356-OP)
July 21, 2022
Receive a presentation from the Town of Horizon City regarding the Town's Tax Increment Reinvestment Zone (TIRZ) No. 1 and the County's potential participation.
May 18, 2020
Receive a presentation from the Town of Horizon City regarding the Town's Vision 2020 Strategic Plan goal to establish transit-oriented design (TOD) overlay zones and tax increment reinvestment zones (TIRZ). | | Strategic Plan: | .. | | Strategic Plan Information: | |
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