Council members unanimously approved the creation of Tax Increment Reinvestment Zone No. 5 in the Legacy Business Park area, which will include space in and around a proposed life sciences campus, during its Jan. 8 meeting. A tax increment reinvestment zone, or TIRZ, is an economic development tool that allows the city to use a portion of property tax revenues to fund public infrastructure projects.
The overview
Director of Special Projects Peter Braster said the proposed ordinance included a draft project plan, which will be presented to council in its final state after it is reviewed by the TIRZ’s board of directors.
“This action and public hearing is about the establishment, not about how [the money will be] spent,” Braster said.
According to a memo, the term of the zone will be 25 years with the city’s property tax allocation, or increment, at 65% of value generated from city taxes only.
Digging deeper
Per the draft plan, the TIRZ will last through 2049 with a final payment made in 2050; however, the zone can be dissolved sooner if the total value of project costs are funded.
The definitions contained within the draft plan also provide for agreements with Plano ISD, Collin County and Collin College to contribute portions of taxable value to the district.
What’s next?
Council will appoint a board of directors to oversee Tax Increment Reinvestment Zone No. 5 at a future meeting. The board of directors will review the draft project plan and provide input before council gives final approval for a project plan, Braster said.
