A council vote to extend the city limits of Lewisville to include the master-planned community of Castle Hills is set for Nov. 15.
But there are a lot of logistics to cover before that council vote can occur.
On Aug. 16, Lewisville City Council agreed to transfer 83 parcels of parkland and open space totaling 44.89 acres to city ownership. The transfer will occur once Castle Hills is annexed.
Council also approved two amendments to Tax Increment Reinvestment Zone No. 3, which encompasses 708 acres within Castle Hills. A TIRZ is a special taxing district that captures growth in property tax value and puts the money into a separate fund for specific uses.
According to a feasibility study, the total revenue generated through the TIRZ over a 30-year period are estimated at more than $194.3 million.
The Aug. 16 changes approved by City Council will allow that TIRZ revenue to be used to reimburse developer Bright Realty for infrastructure improvements within the zone. That TIRZ revenue can also now be used on economic incentive grants, according to city documents.
An Aug. 17 news release from the city of Lewisville states the funds could help with the development of two mixed-use projects, Crown Center and The Realm.
The revised agreements, according to the city, will facilitate projects “that will further develop the property and take full advantage of the opportunity to bring to the city, the county and the region additional quality development.”
According to a memo from Lewisville City Manager Donna Barron, Bright Realty would pay for the public infrastructure up front. It would then be reimbursed once revenue is generated through the TIRZ, the memo stated.
Bright Realty must submit its funding requests to the city for approval.
Among the projects eligible for financing are a structured parking garage, corporate relocation incentive grants, park fee waivers, and reimbursement for infrastructure and city fees, according to city documents. Infrastructure could include roads, utilities and drainage improvements.
The annexation of Castle Hills dates back to a 1996 agreement between the Bright family and the city. That agreement declared the mutual goal for the 2,900 acres in Castle Hills to eventually become part of the city of Lewisville.
Annexation is contingent on approval from the boards of eight separate fresh water supply districts that operate in Castle Hills. According to the city news release, two boards have given approval, and a third gave approval as long as the parkland transfer occurred.
The boards for the five remaining districts are set to meet this week to consider the agreement, according to the city.
The map below shows the areas of Castle Hills included in TIRZ 3.
