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Consider a memorandum/resolution approving a Chapter 311 tax increment reimbursement agreement with Philip Boghosian Living Trust, the Howard Sagaser 401K Plan, & the Sagaser, Watkins, & Wieland 401K for the reimbursement of infrastructure improvements, in the amount of $3,991,303.94
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DATE: August 4, 2026
TO: Kent Cagle, Interim City Manager
FROM: Wallis Meshier, Exec. Dir. Of Dev. Serv.
SUBJECT: Chapter 311 Agreement for Sante Fe Development
BACKGROUND AND FINDINGS:
The City of Killeen established Tax Increment Reinvestment Zone No. 2 (TIRZ #2) to promote local economic development and stimulate business and commercial activity within the city in accordance with Chapter 311 of the Texas Tax Code.
The Philip Boghosian Living Trust, Howard Sagaser 401K Plan, & Sagaser, Watkins, & Wieland 401K, own property within the boundaries of TIRZ #2 and a targeted investment area as defined in the Killeen Economic Development Policy.
The development will add approximately $657.8 Million in real property ad valorem tax value at full build out. This development will include approximately 115 acres of SF-2 (Single-Family Residential) for two-family dwellings, 131 acres for M-1 (manufacturing- excluding petroleum products; wholesale storage; feed mill; sewage treatment plant; and crematoriums), and 56 acres of park and open space.
The applicant is requesting a reimbursement of road, water, sewer, and drainage improvements for the future industrial site in an amount not to exceed $3,991,303.94. The Chapter 311 agreement would allow reimbursement of 100% of all real property tax increment generated by both the residential development and potential industrial property for the remaining life of the TIRZ #2 (2048).
THE ALTERNATIVES CONSIDERED:
1. Disapprove the Chapter 311 Tax Increment Reimbursement Agreement;
2. Amend the Chapter 311 Tax Increment Reimbursement Agreement;
3. Approve the Chapter 311 Tax Increment Reimbursement Agreement
Which alternative ...
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