Southlake City Council approved the first reading of a possible tax increment reinvestment zone, TIRZ, and preliminary project and financing plan for the Shivers Farm development’s commercial district at its Sept. 15 meeting.
What’s happening?
Shivers Farm is a 40-acre mixed-use development coming to Southlake which will include 110,000 square feet of retail and a Whole Foods, according to the developer, Trademark Property Company.
The council previously approved the master development agreement for the property and is now discussing a TIRZ that would help fund development and maintenance of the commercial areas of Shivers Farm.
A TIRZ is used to finance public improvements that will enhance the environment or attract new investment within a defined area. Current property tax is calculated within the zone and future growth caused by development is known as the tax increment.
A portion of the tax increment and eligible sales tax revenue generated within the zone due to the new development is then reinvested into construction and maintenance inside the zone. This would be the city’s second TIRZ.
Under the proposed TIRZ, the base year will be created before Dec. 31 and up to 95% of the tax increment will be reinvested into the area. The total 2026 appraised value in the zone is $803,531, said Daniel Cortez, the city’s economic development and tourism director.
The specifics
The master development agreement for the property sets the maximum amount of financial incentives the development can receive from the city at $18.85 million.
This amount includes funding received from the TIRZ as well as any possible city grants or reimbursements.
Total project costs for the development are estimated at $18.85 million, according to the city.
Some of the approved uses for the TIRZ funding include utility installation and maintenance as well as park and road construction and upkeep.
The TIRZ will be 25.9 acres and will exist for 21 years.
Diving in deeper
The performance standards set in the master development agreement would not be changed if the TIRZ is created.
These standards include a minimum capital investment of $127.9 million from the developer and maintaining a minimum taxable value of $80 million for the first year.
The agreement also requires construction to begin before 2027 and for the commercial section to be completed by the end of 2028, according to the city.
What’s next
The council will vote to approve or deny the TIRZ and preliminary project and financing plan at its Oct. 6 meeting.
The final project and financing plan will be presented to the city council at its Nov. 3 meeting.
The final plan will include all final details and will be updated to reflect any participation by overlapping taxing jurisdictions like Tarrant County. If the county chooses to participate, the 95% participation from the city of Southlake would be reduced to account for the change, according to city documents.
