Council voted 4-1 for the measure, with council member Adam Schiestel opposed.
Flower Mound has one TIRZ, established in September 2005 to provide funds for public infrastructure within the town’s FM 2499 corridor. It consists of approximately 1,465 acres.
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 a council agenda item. A TIRZ obligates future tax revenues from each participating taxing unit to pay for project costs, with town leaders determining a list of projects eligible.
In September 2022, town officials first publicly discussed the potential for a TIRZ to be used for infrastructure costs in the west side of Flower Mound. Since then, town staff worked with the town’s consultant, P3 Works LLC, in creating the preliminary project and financing plan for the second TIRZ, which was approved by council in November 2023. The plan will terminate Dec. 31, 2053, unless otherwise terminated in accordance with the ordinance. Town officials have the right to terminate the TIRZ before that date if all the project costs have been paid in full, the memo states.
Zooming in
Mary Petty, co-founder and managing partner of P3Works, discussed the plan with council March 18, explaining how one overarching goal of the TIRZ is to have a dedicated financial mechanism for infrastructure management and economic development. Petty also showed where the TIRZ boundaries would be located: They are 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 Whites Branch area.
The details
The TIRZ property contains nearly 4,000 acres, which are wholly located within the town's corporate limits. Adoption of the final plan does not commit the town to spend funds, the agenda memo states, as commitments to spend funds for identified public improvements will come with a capital improvement agreement. At that time, specific projects will be identified along with approved plans and actual engineering costs.
Additionally, the memo states, once the final plan is adopted, town officials will continue their discussion with Denton County officials regarding their participation in the TIRZ. County officials would want to review the final plan prior to making their decision on participation.
