At its Oct. 2 meeting, Flower Mound Town Council set a public hearing for the creation of a TIRZ containing approximately 3,962 acres of land generally located at the intersection of FM 1171 and US 377.
The measure was approved 4-1 with Council Member Adam Schiestel opposed. That hearing will be held Nov. 6.
The background
A TIRZ is an economic development tool that can be used by municipalities and counties to finance infrastructure costs in specific geographic areas, according to the council agenda.
“While not related to the creation of TIRZ No. 2, the town has one TIRZ that was established in September 2005 to provide funds for public infrastructure within the Town’s FM 2499 corridor,” the agenda memo states. “TIRZ No. 1 consists of approximately 1,465 acres, is compliant with Chapter 311 and continues to accomplish the goals under which it was created. TIRZ No. 2 is proposed in western Flower Mound, generally north and south of the intersection of FM 1171 and US 377, expanding west to property located adjacent to I-35W and east to [the neighborhood of] Whites Branch.”
Chapter 311 projects are those involving tax increment financing and can be used to pay for improvements to a zone so it will attract new development, according to the state comptroller’s website.
After the Nov. 6 hearing, council will consider the creation of TIRZ No. 2, and the adoption of the preliminary project and finance plan. Council also will consider approval and adoption of the final project and finance plan at a date in the future, according to a presentation given by Mary Petty, co-founder and managing partner of P3Works LLC, the town’s consultant, at the meeting. P3Works is a firm specializing in helping cities and counties create and administer TIRZs, according to town information.
Town Manager James Childers said council will tentatively have an agenda item serving as an education tool for the TIRZ at the Oct. 19 council work session.
Zooming in
In September 2022, town officials first publicly discussed the potential for a TIRZ to be used for infrastructure costs as the western areas of town begin to develop, according to a council memo.
Petty provided a TIRZ 101 presentation to council approximately one year ago, she said.
“Since then, I’ve worked extensively with staff to answer and educate, so that they had a great understanding of where they needed to go and with certain recommendations,” she said.
Town staff has worked with Petty on the preliminary project and financing plan for TIRZ No. 2.
At the November public hearing, Petty said people will have a chance to speak for or against the TIRZ, property in the TIRZ or just the concept of the TIRZ in general.
During the Oct. 2 meeting, Petty presented information on introducing what a TIRZ can do, such as how a TIRZ obligates future tax revenues from each participating taxing unit to pay for project costs. The town can determine a list of projects eligible for the TIRZ, and each taxing unit can choose what percentage, if any, it will contribute. The life span of the TIRZ lasts as long as the council decides upon creation.
Petty outlined some goals a town can pursue in a TIRZ, such as assisting in development or redevelopment of a particular area, or renovation or installation of public infrastructure.
“Just because you create that TIRZ in the future does not mean that you have approved certain projects, [and] it does not mean you have obligated the dollars to a particular entity or certain individual,” Petty said. “It just means that you have established a boundary.”
A final project and finance plan will be created. Preliminary costs of projects, which among other expenses include streets and storm sewer and municipal services, come in at $380 million, in today’s dollars.
What they’re saying
Council member Ann Martin said she wanted more information on the method of financing, particularly the initial TIRZ money, and said one standout feature she sees in the TIRZ is that it includes no bonded indebtedness planned.
“I think that’s a significant feature we should spend some time talking about should we move forward,” she said.
