Flower Mound Town Council unanimously approved the agreement April 15. The development will be located near US 377 and FM 1171. The agreement establishes a process and provides for the reimbursement of impact fees and Tax Increment Reinvestment Zone No. 2 revenues for qualified capital improvement costs.
The background
A council agenda memo states this agreement is a three-party agreement between the developer, the TIRZ No. 2 board of directors and the town. The TIRZ No. 2 board approved the same agreement at its April 15 meeting. 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 town information.
Flower Mound Ranch, previously known as Furst Ranch, is a planned, mixed-use development that will have single-family homes, apartments and commercial operations. Flower Mound Ranch is overseen by owner and master developer Jack Furst.
Zooming in
The project is still in the planning stages. Melissa Demmitt, communications director for the town, said in an email there is a development agreement that would address multiple items within the project, including parks, that still has to be negotiated and finalized. But beyond that, for the commercial development, the next step would be the developer submitting plats and site plans, she said.
“The development time frame would then be dependent on the developer,” she said.
The details
Mary Petty, co-founder and managing partner of P3Works, spoke to council about the agreement, explaining the TIRZ was set up only to pay for capital improvement projects in the Tier 1 level, which is what developers would be eligible to seek reimbursement for. The capital improvement agreement explains the procedures for how a developer can apply for those dollars.
Council member Adam Schiestel asked Petty what the town would do if it didn’t have the agreement and TIRZ for capital improvement projects, and Petty said that would be the obligation of the town. Schiestel asked whether they meant potentially taking on debt to pay for projects, and Petty said yes, it would involve debt, and it would be a policy decision to do that.
While this capital improvement agreement is particularly for Flower Mound Ranch, Petty said other developers eligible to apply for capital improvement projects and reimbursements could pursue something similar to this in the future.
