With an eye toward the future, Missouri City City Council approved a project capacity expansion to water and wastewater projects within Tax Increment Reinvestment Zone No. 2, located in the southeast part of the city.

The capacity expansion, which was approved at the City Council March 6 meeting, increases total allocatable funding and therefore project capacity within the reinvestment zone from $9.5 million to $39.5 million for water and wastewater projects. TIRZs allocate a portion of property taxes into a separate account that can be used for improvements or economic agreements within the zone.

According to city staff reports, the TIRZ 2 area includes “booming” development, including Newquest Properties' proposed Fort Bend Town Center III project at the intersection of Fort Bend Parkway Toll Road and Hwy. 6. TIRZ 2 runs primarily along Hwy. 6 from Lakeshore Harbour Boulevard to the west and North Creekmont Drive to the south; it extends north past Lake Olympia Parkway and includes the Lakeshore Harbour subdivision, according to a map on the city website.

"This is not giving the city an additional $30 million, it is creating capacity in the project plan," City Attorney Joyce Iyamu said.

The city also approved a request to allocate $7.5 million from TIRZ 2 for water and wastewater improvements, making up half of a $15 million set of eight projects that will be completed by 2024. The other $7.5 million for the $15 million project will be funded through Missouri City's 2023 certificates of obligation.

The agreement passed on March 6 is the fourth amended and restated Project and Financing Plan. The city approved the first TIRZ 2 project and financing plan in 2008, the second in 2020 and the third in 2021. The TIRZ agreement will be honored until 2049.