Update: At the September 4, City Council meeting, council voted to extend the Southlake Tax Increment Reinvestment Zone #1 for an additional 20 years.
In addition to extending the TIRZ #1, the ordinance also amended the project and financing plan to allow for maintenance to be funded.
“I love the idea that we can use some of the money now to put back into Town Square, because I think one of the hard things about building large projects is the maintenance,” noted Mayor Laura Hill during the Council meeting. “It’s very very hard as the years go by to maintain a level of excellence that everyone expects, so this is great.”
August 8, 2018
The City Council unanimously approved a measure to extend the Southlake Tax Increment Reinvestment Zone #1 on August 7. The ordinance was approved on first reading and must come back for a public hearing and final vote on August 21.
This approval paves the way for continued investment in Southlake’s downtown area and on selected school property and is an example of how the city and school district work together to serve the community.
“TIRZ #1 was created in 1997 to make Southlake Town Square possible,” said Alison Ortowski, Assistant City Manager. “Extending the life of the zone provides a way of continuing to finance projects in the area and helps Carroll ISD keep a significant portion of their tax dollars working for them locally.”
The TIRZ tool works by using the current or future tax revenue that comes from the redeveloped or appreciated property within the zone. The tax dollars generated by the growth of real property value in the zone are called the tax increment. Those dollars are then re-invested into the zone and are spent according to a Council-approved plan.
The reinvestment zone covers 408 acres, including Town Square and Carroll ISD (CISD) schools, the transportation facility, and Dragon stadium. Certain roadways are also located in the zone. By extending the life of the zone by twenty years, the City and CISD will have earmarked dollars to invest in the construction and maintenance of public buildings, parks, general infrastructure, operations and maintenance in the area.
“The extension of the zone benefits the City by allowing us to keep our downtown well-maintained and vibrant,” Ortowski continued. ‘But the big impact is that continuing the zone will allow CISD to capture certain property tax dollars and keep those dollars within the district, available for projects that will benefit the local school district.”
Details about taxes and planned projects for TIRZ #1 will be presented on August 21 when the Council considers the extension on final reading.