What you need to know
A TIRZ is an agreement between a governmental body and a developer—in this case Airia Development Company—to reimburse the developer for the construction of road and infrastructure improvements over a period of time from collected property tax revenue.
The Colton community is located in Todd Mission and broke ground in April. Until 2024, counties were not legally able to create or manage a TIRZ; however, a constitutional amendment approved by voters in November 2021 changed the policy.
Precinct 2 Commissioner Charlie Riley led the effort to create the first TIRZ for the county June 18 with Johnson Development Company for the Kresston neighborhood, which is also in the Magnolia area.
The breakdown
Precinct 3 Commissioner James Noack argued heavily against the creation of the TIRZ due to concerns for the county’s ability to fund any kind of economic incentive. However, Montgomery County Judge Mark Keough said the project would financially benefit the county in the long run by providing an incentive to grow and build within the area.
The agreement terms included a 20-year period where the county would reinvest 75% of property tax revenue to the development in exchange for the construction of multiple roadways and other infrastructure within the 5,700-acre development. Once the development is completed, the TIRZ is terminated and the county begins collecting full property tax revenue from the complete development.
In their words
- “Every year when we go to set our budget, the money for these types of programs, these economic incentives, they come right off the top,” Noack said. “You get paid before any dollar is allocated to law enforcement, to a tax office to the animal shelter office. It really puts a strain.”
- “This developer is going to do things for his development; it's going to be good for his development,” Riley said. “He's also going to do things that are good for Montgomery County [by] building some of the roads that we won't have to deal with. So I think it's a good deal for Montgomery County.”
- “This will take nonproductive property and turn into something that is productive,” Keough said. “It is going to draw business. It's going to draw productivity in the community. It will put in roads, it will put in infrastructure; and from that perspective, it's an opportunity.”
Noack, Precinct 1 Commissioner Robert Walker and Precinct 4 Commissioner Matt Gray voted against the creation of the TIRZ, while Riley and Keough voted in favor of the incentive. Work on the development is set to continue regardless of the TIRZ decision, and full build-out of the Colton development is not expected until after 2040.
