Title
An ordinance approving a Project Plan and Reinvestment Zone Financing Plan for Reinvestment Zone Number Fourteen, City of Mesquite, Texas (Alcott Logistics Station); establishing a tax increment for the zone, and making a finding regarding feasibility.
Body
On April 5, 2021, after conducting a public hearing in accordance with State law, the City Council adopted Ordinance No. 4853 creating Reinvestment Zone Number Fourteen, City of Mesquite, Texas (Alcott Logistics Station), the “TIRZ.”
Section 311.013(l) of the Texas Local Government Code specifies two opportunities for the City Council to determine the City’s portion of tax increment or participation rate: (1) within the creation ordinance, or (2) within the ordinance that approves the Project Plan and Reinvestment Zone Financing Plan (the “TIRZ PFP”) after its adoption by the TIRZ Board; otherwise, the City is required to pay the entire tax increment (100%) into the TIRZ Fund.
On May 3, 2021, the Alcott Logistics Station TIRZ Board of Directors will meet to adopt the attached TIRZ PFP based on information provided by Urban Logistics Realty. The TIRZ PFP establishes by ordinance the City’s TIRZ participation rate of 50 percent for a term of 30 years. At this participation rate, the TIRZ Fund will accumulate an estimated $15.6 million to reimburse developers that construct public improvements within the TIRZ, including the City’s administrative costs and ongoing maintenance costs of park and trail amenities. The City’s General Fund would also receive an estimated $15.6 million over the same period of time to fund fire, police and other general government operations.
By statute the TIRZ Board adopts the TIRZ PFP and recommends its approval by the City Council. The TIRZ PFP only becomes effective after Council approval.
Recommended/Desired Action
Staff recommends approval of the ordinance.
Attachment(s)
Ordinance
Drafter
Ted Chinn
Head of Department
Ted Chinn