Presenter/Contact
Presenter
Jeff Jewell, Director of Economic and Community Development
Contact Info
(830) 221-4621 - jjewell@nbtexas.org
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SUBJECT:
Title
Approval of a resolution adopting City of New Braunfels Tax Increment Reinvestment Zone Number Three (TIRZ Number Three) Project and Finance Plan and establishing the composition and qualifications of the TIRZ Number Three Board.
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DEPARTMENT: Economic and Community Development
COUNCIL DISTRICTS: 1, 5, 6
ISSUE:
On September 27, 2021, the City Council held a public hearing and passed an ordinance establishing the City of New Braunfels Tax Increment Reinvestment Zone Number Three (TIRZ Number Three). At this hearing, the City Council reviewed and approved the TIRZ Number Three Preliminary Project and Finance Plan. The TIRZ will allow the City to use the incremental increase in property taxes above the base (2021) year collections for designated improvements in the zone area.
The Final Project and Finance Plan calls for 85% of the City’s property tax to be directed into the TIRZ fund for a 25-year period. No other entities are contributing a portion of their tax increment into the fund and no sales tax is proposed to be directed into the fund.
The current City Council action adopts the Final Project and Finance Plan (Attachment 1) and established the composition and requirements of the TIRZ Number Three Board. Chapter 311 of the Texas Tax code states that TIRZ Boards shall be composed of between 5-15 members and that members must meet the following qualifications: be at least 18 years of age, be a resident of the County or adjacent County in which the zone is located, or own real property in the zone (regardless of County residency).
FISCAL IMPACT:
Over a 25-year term, the TIRZ is anticipated to generate approximately $14.8M in total City property tax for Downtown improvements as specified in the Preliminary Project and Finance Plan.
Recommendation
COMMITTEE RECOMMENDATION:
The New Braunfels Downtown Board met on October 19, 2021 and recommended the following TIRZ Number Three Board Composition:
• 7 Board Members Total
• 5 Members Owning Property in the Zone
• 2 at-large Members (being residents of Comal County or adjacent Counties)
STAFF RECOMMENDATION:
Staff recommends adoption of the TIRZ Number Three Project and Finance Plan and the Board Composition recommendations made by the New Braunfels Downtown Board.