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File #: PH-22-090    Version: 1 Name: TIRZ Ordinance
Type: Ordinance/Public Hearing Status: Passed
File created: 11/14/2022 In control: City Council
On agenda: 12/13/2022 Final action: 12/13/2022
Title: HOLD a public hearing and consider amendments to the Tax Increment Reinvestment Zone Number Two (TIRZ #2) ordinance by amending the project and financing plan, expanding the TIRZ #2 boundary, and extending the duration of the TIRZ #2.
Sponsors: Development Services
Attachments: 1. Ordinance, 2. Presentation
Title

HOLD a public hearing and consider amendments to the Tax Increment Reinvestment Zone Number Two (TIRZ #2) ordinance by amending the project and financing plan, expanding the TIRZ #2 boundary, and extending the duration of the TIRZ #2.

Summary

DATE: December 6, 2022

TO: Kent Cagle, City Manager

FROM: Edwin Revell, Executive Director of Development Services

SUBJECT: HOLD A PUBLIC HEARING AND CONSIDER AMENDMENTS TO THE TAX INCREMENT REINVESTMENT ZONE #2 (TIRZ #2) ORDINANCE

BACKGROUND AND FINDINGS:

A Tax Increment Reinvestment Zone, also known as "TIRZ", is an economic development tool authorized by Chapter 311 of the Texas Tax Code, through which governments can designate a portion of tax increment to finance improvements to promote the development of a defined area, called a "Reinvestment Zone."

Killeen's TIRZ #2 was established on November 4, 2008. Termination of the operation of the Zone will occur on December 31, 2028, unless otherwise amended.

The Project and Reinvestment Zone Financing Plan was adopted on August 25, 2009. In 2015, the boundaries of TIRZ #2 were amended to include thirty-two (32) acres on the southwest corner of Rancier Ave. and 38th Street. The Project Financing Plan was also updated to account for the boundary expansion.

In 2017, the TIRZ boundary was again amended to include Rancier Avenue from Fort Hood Street to Root Avenue (Ordinance No. 17-012). The Project Financing Plan was also amended at that time.

At this time, staff is recommending the following changes to the TIRZ ordinance:

* Amending the Project and Financing Plan.
TIRZ funds can be used to pay for any permitted "Project Cost" in the Project Plan. Staff recommends updating the list of projects as listed in the attached ordinance. The proposed project plan totals $113,500,000, and includes the following proposed projects:

Project
Estimated Cost
Streetscaping improvements in Downtown Killeen
$14M
Rancier Avenue replacement and streetscaping improveme...

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