Leander clarifies tax reimbursement for Northline development

On April 27, Leander Tax Increment Reinvestment Zone board members ensured that Northline Leander Development Company would receive reimbursements for improvements made as part of the Northline development that are now managed by Endeavor.

The details

Northline, a 116-acre mixed-use project in Leander, is located within a tax increment reinvestment zone, or TIRZ. In exchange for Northline creating public improvements within this area, the city owes Northline reimbursement under the TIRZ agreement. Northline previously partnered with Endeavor Real Estate Group to create a separate, 17-acre retail-focused project, known as Northline Retail PUD.

Last week’s meetings ensured that Northline received reimbursements for the areas they improved that are now owned by Endeavor. The commercial real estate company has overseen several large local projects like The Domain in North Austin.

Local governments can create a TIRZ to incentivize economic development. By collecting the extra tax revenue from increasing property values within the zone, local governments can reinvest that additional revenue for infrastructure development.

According to TIRZ board chair Michael Herrera, the TIRZ committee will be meeting more frequently over the next year as developments and capital improvement projects in the Northline area continue.

Keep in mind

Northline, which is billed as the city’s new downtown, will include housing, retail and a new city hall.

“There's going to be a lot of activity in the TIRZ area, in particular, around the area of Northline ... especially as we get ready to move the city hall to that area,” Herrera said.