Frisco City Council on Nov. 2 took steps to establish the city’s seventh tax increment reinvestment zone on nearly 890 acres associated with the development.
Reinvestment zones, often referred to as TIRZ, collect growth in property tax value of a certain area. Money generated within a TIRZ funds public improvements within the area without creating new taxes.
The new TIRZ is planned to include a tax increment of 50% ad valorem taxes to be collected from taxable property within the zone, according to a presentation given by Deputy City Manager Ron Patterson. Funds would help build public roadways, utilities and other infrastructure necessary to serve the area.
“This is what was contemplated in our master development agreement, and this process will close the loop to get this created,” Patterson said.
Development within Fields is expected to occur over the next 20 to 30 years. The base “capture value” associated with the TIRZ is estimated at about $41 million.
At buildout, the city expects the value in the zone to approach $10.7 billion, a figure reached by the city of Frisco after studying values associated with the Legacy West development in Plano.
Patterson said Frisco would issue $30 million in bonds to pay for portions of the future Fields Parkway road. In addition, he said Frisco will see future debt issued for “enhanced improvements to public streets, hike-and-bike trails and other public ways” constructed within the zone.
Mayor Jeff Cheney said public-private partnerships in Frisco often sound “really easy” when city staff describes them, but he said a lot of work goes into creating deals such as a TIRZ.
“These are really complex deals that a lot of cities, quite frankly, don't get involved with because they’re too complex,” Cheney said. “To tackle these and be able to do them is why we have these kinds of products here in Frisco.”
On Nov. 16, City Council will hold a public hearing on TIRZ No. 7 and will vote on whether to approve preliminary finance plans and to establish the zone. Council members are scheduled on Dec. 7 to vote on final finance plans.
