City Approves Creation of TIRZ #1
Navasota Examiner by Connie Clements
After a public hearing with no comments against, the Navasota City Council approved the first reading of Ordinance No. 1010-22, the creation of Tax Increment Reinvestment Zone No. 1 (TIRZ #1). Approval encompassed the designation of the TIRZ boundaries, the City’s rate of participation, a termination date and the creation of a board of directors.
Miller, Mayor Pro Tem Grant Holt, Mai, council members Pattie Pederson and Josh Fultz.
The purpose of TIRZ #1 is to finance $22 million in project costs related to infrastructure, mobility and connectivity, parks and recreation and economic development.
City Manager Jason Weeks stressed that a TIRZ is not a tax on residential or commercial property owners.
When a TIRZ is created, the city records the base tax value of the properties in the TIRZ at the time of creation. As development occurs and values increase, property taxes collected above the base value go into a TIRZ fund; however, during the creation process, city council determines what percentage of that revenue will go to the TIRZ fund with the remainder going to the General Fund. In this case, the rate will be 50% and the city council can change the participation rate by amending the ordinance. TIRZ #1 will terminate Dec. 31, 2052, and any unused TIRZ funds will go into the General Fund.
The boundaries of TIRZ #1 consists of approximately 2,980 acres of land located within the Navasota city limits and its ETJ (extraterritorial jurisdiction). It is bounded by SH 6 to the west, Navasota’s ETJ limit to the east, FM 3090 to the north and SH 105/Spur 515 and CR 446 on the south.
Approximately 274 acres is located in the northwest corner of SH 6 and Spur 515 and 30 acres is situated in the southwest corner of SH 6 and FM 3090.
At present, 94% of the property is undeveloped or in agriculture use with 3% commercial and 2% single family development. The current taxable value is $45.5 million with a projected taxable value in 2052 of $557.3 million.