08 - Re-Establishing Reinvestment Zone 2015-1 as Reinvestment Zone 2020-1

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Item No. 8 memorandum TO: City Council Gene Anderson, Interim City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: REAUTHORIZATION OF RESIDENTIAL REINVESTMENT ZONE DATE: February 3, 2020 BACKGROUND: In 2013, council authorized a reinvestment zone for the purpose of granting residential tax abatements. Said reinvestment zone included City Council Districts 1-5, and was designated as Reinvestment Zone 2013-1. Council expanded the reinvestment zone in 2015 to have it include all council districts. The expanded reinvestment zone was named Reinvestment Zone 2015-1. Under the Texas tax code, reinvestment districts expire 5 years after creation but may be renewed. Since 2013, the city has granted 7 residential tax abatements, all granted in 2015, and all now expired. Last year, council reaffirmed its desire to participate in residential tax abatements and readopted the criteria and guidelines regarding such abatements. STATUS OF ISSUE: Should council wish to continue the residential tax abatement program, we will need to reauthorize Reinvestment Zone 2015-1 for another 5 years. A public hearing must be held prior to renewal. I have prepared an ordinance reauthorizing the zone and naming it Reinvestment Zone 2020-1. Council will need to reaffirm its desire to participate in such abatements and readopt criteria and guidelines in 2 02 1. BUDGET: Based on prior years, there should be minimal impact to the budget. RECOMMENDATION: Conduct a public hearing and adopt an ordinance creating residential Reinvestment Zone No. 2020-1.