How it works: Frisco to benefit from latest tax increment reinvestment zone

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Frisco City Council on Dec. 7 approved its seventh tax increment reinvestment zone. Also known as a TIRZ, it is a special taxing district used by many local governments to support development, infrastructure and drive revenue within a community.

A TIRZ captures growth in property tax value. Revenue generated from that value goes into a separate fund. Taxes generated from the captured value are restricted to funding improvements within Frisco City Council-approved TIRZ boundaries.

The new TIRZ encompasses nearly 890 acres associated with the Fields development, according to Deputy City Manager Ron Patterson. Its base capture value is over $41 million, and in 30 years, the value is expected to soar to around $10.7 billion.

In addition, 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 associated with the PGA are expected to cost $35 million, Patterson said.

The TIRZ expansion will fund more than $19.1 million of that cost. 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.

Mayor Jeff Cheney said much work goes into creating a TIRZ.

“To tackle these and be able to do them is why we have these kinds of products here in Frisco,” he said.
By Matt Payne
Matt Payne reports on Frisco City Hall and its committees, Collin County Commissioners and McKinney business. His experience includes serving as online content editor at Fort Worth Magazine and city editor at the Killeen Daily Herald. He is a 2017 graduate of the Frank W. and Sue Mayborn School of Journalism at the University of North Texas in Denton.