The Kyle City Council approved the first reading of an ordinance to establish the city’s second tax increment reinvestment zone, or TIRZ, at its Dec. 4 meeting. The vote was 6-1, with Council Member Shane Arabie voting against.
A TIRZ is created with tax increment financing, which is a municipal financial tool that dedicates future tax revenue within a certain boundary to investment in the same area.
If approved at the second reading, Kyle’s new TIRZ is intended to spur development of Uptown Kyle, part of Phase 2 of Plum Creek, a long-considered vertical mixed-use project.
The developer working on the project is Momark, whose president, Terry Mitchell, was on hand for the council discussion. Mitchell said it is the company’s intention to build a community of residential, office and retail options with an emphasis on upscale retail development that creates activity, such as restaurants and bars.
In addition to establishing the boundaries of the TIRZ, the ordinance creates a nine-member TIRZ board and appoints all seven sitting City Council members to it; the two remaining seats will be appointed by the county, which is participating in the TIRZ, unless the county chooses to allow the city to appoint those seats to the board.
Another part of the ordinance is the term sheet, which includes stipulations that the development will be mixed-use, no money raised from the TIRZ will be spent on improvements to private property, 17 acres of the property will be dedicated to public use, all improvements will be approved by the TIRZ board and that the money may only be spent if the tax value supporting the cost exists.