Laserfiche WebLink
Item Nos. 21-23 <br />Memorandum <br />TO: Mayor, Mayor Pro Tem & City Council <br />FROM: Grayson Path, City Manager <br />Stephanie Harris, City Attorney <br />SUBJECT: Tax Increment Reinvestment Zone (TIRZ) <br />DATE: March 27, 2023 <br />BACKGROUND: <br />On October 28, 2019, November 11, 2019, and February 24, 2020, a prior City Council met and <br />approved the creation of a Tax Increment Reinvestment Zone (TIRZ), authorized under Texas Tax <br />Code Chapter 311. As Section 1. 1, "Authority and Purpose", of the approved Project and Financial <br />Plan states, which is supported by TAC 311, the purpose of the TIRZ is: <br />"...to promote development of the area if the governing body of the City determines that <br />development would not occur solely through private investment in the reasonable <br />foreseeable future, that the zone is feasible, and that creation of the zone is in the best <br />interest of the City and the property in the zone. The purpose of the zone is to facilitate <br />such development by financing the costs of public works, public improvements, programs, <br />and other projects benefiting the zone, plus other costs incidental to those expenditures, <br />all of which costs are authorized by the Act. " <br />The City at that time worked with a third party consultant to develop documents to create this zone. <br />On November 11, 2019, the City Council approved Ordinance 2019-045 — designation of a <br />Reinvestment Zone, establishing the boundaries (ordinance is attached). On February 24, 2020, <br />the City Council approved a Project Plan and Financial Plan (attached). A board was also selected. <br />The final document that was needed but sent back for revisions was the board bylaws. <br />Due to significant turnover and other priority projects at the time, the bylaw revisions were never <br />completed and brought back and the zone was never shared with the Lamar County Appraisal <br />District (LCAD), thus the funds did not begin to accumulate. It was thought that these were all <br />being done or had been done, but this was a series of miscommunications due to the challenges <br />the city was going through at that time. It was also discovered that there were two conflicting TIRZ <br />