Tax increment reinvestment zones, which are often called TIRZs, 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.
Frisco City Council on Nov. 16 approved a 585-acre expansion of TIRZ 1 to include golf courses associated with PGA Frisco. Three public golf courses and related facilities associated with the PGA cost $35 million, according to a presentation given by Deputy City Manager Ron Patterson.
The TIRZ expansion will fund more than $19.1 million of that cost, he said. A total of over $6.3 million from the TIRZ will also go toward the city’s conference center at Hyatt Regency Frisco-Dallas, which has a total cost of over $16.5 million. An $18 million parking structure at the Stonebriar Centre mall will also be fully funded by the expansion.
Council members also worked toward creating a new, seventh TIRZ to support infrastructure at the Fields development. Preliminary project and finance plans were approved, but City Council will vote on whether to adopt final plans in a meeting on Dec. 7.
TIRZ 7 is planned to encompass nearly 890 acres associated with the development. It will primarily encompass mixed-use, commercial areas within Fields, Patterson said. He added that public roadways, utilities and landscaping work will be bolstered by a new TIRZ.
Development is expected to occur over the next 20 to 30 years in Fields. Its base capture value is over $41 million, according to the city. At buildout, the value is expected to soar to around $10.7 billion.
“That’ll be a tremendous amount of value that we'll be able to use in TIRZ No. 7,” Patterson said.