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No. 22 <br />Memorandum <br />TO: Mayor, Mayor Pro Tem & City Council <br />Grayson Path, City Manager <br />FROM: Stephanie Harris, City Attorney <br />SUBJECT: Amendments to TIRZ Bylaws <br />DATE: March 27, 2023 <br />BACKGROUND: <br />Please refer to Mr. Path's agenda memo on Item No. 21 for a comprehensive factual <br />background on the formation of the TIRZ. I will address amendments to the bylaws in this <br />memorandum. <br />In early 2020, Council considered adoption of the TIRZ bylaws previously approved by the TIRZ <br />board of directors and declined to approve them as written, instead directing several changes to be <br />made thereto. I have incorporated most of those changes. The changes I did not incorporate are <br />based on statute. You will find attached hereto both a redline version and a clean version for your <br />review. <br />STATUS OF ISSUE: <br />Item 1: Board of Directors: <br />Council disapproved of calling the TIRZ board a "board of directors," likely because the board is <br />advisory in nature. As my comment on the draft indicates, the board is referred to throughout the <br />authorizing statute, Chapter 311 of the Tax Code, as a "board of directors." See, e.g., Sec. 311.009 <br />("Composition of Board of Directors"); Sec. 311.010 ("Powers and Duties of Board of Directors"); <br />etc. Consequently, it is my opinion that our bylaws should track the state statute, as TIRZs are <br />statutory creatures and strictly regulated. <br />