Title
A. Conduct a public hearing and consider an ordinance enlarging the boundaries and increasing the geographic area of Reinvestment Zone Number Twelve, City of Mesquite, Texas (IH-20 Business Park) (“the Zone”) by adding to the Zone approximately 13 acres of City rights-of-way adjacent to the Zone and approximately 828 acres of noncontiguous land generally located south of Scyene Road, west of Lawson Road, north of Berry Road, and east of Ashley Furniture Industries Distribution Center, and being located within the corporate limits and extraterritorial jurisdiction of the City, pursuant to Chapter 311 of the Texas Tax Code, describing the boundaries of the Zone as enlarged, extending the term of the Zone, amending Ordinance No. 4579, containing findings related to the enlargement of the Zone, and providing that expansion of the Zone take effect immediately upon passage of the ordinance.
(This public hearing is continued from the June 7, 2021, City Council meeting.)
B. An ordinance approving a Project Plan and Reinvestment Zone Financing Plan for Reinvestment Zone Number Twelve, City of Mesquite, Texas (IH-20 Business Park), and making a finding regarding feasibility.
Body
On July 2, 2018, the City Council adopted Ordinance No. 4579 designating Reinvestment Zone Number Twelve, City of Mesquite, Texas (IH-20 Business Park) to promote new industrial development along the IH-20 corridor at Lawson Road. The TIRZ includes 248.1466 acres of land consisting of six tracts within the corporate limits of the City, and the designation ordinance also set the City’s tax increment participation rate at 50 percent. The Project Plan and Reinvestment Zone Financing Plan was not adopted at that time.
At that time, the developer was looking to construct 3.7 million square feet of industrial space with an estimated taxable value of $316 million in seven phases over a 12-year period, and the TIRZ would accumulate $12.9 million over 20 years to finance approximately $12.4 million in public improvements to facilitate the development. The developer has been waiting on the findings from a floodplain study by Garver, LLC, for the portion of the South Mesquite Creek tributary that abuts the property to determine the extent of the fully developed floodplain and scope of drainage improvements needed to support the development. The developer has also since revised the concept plan and has acquired an additional 216 acres around the Mesquite Metro Airport for further industrial development around the Airport and possible private aircraft hangar development to support Airport business.
The proposed ordinance would expand the TIRZ boundary metes and bounds of the six parcels to include abutting rights-of-way such as McKenzie Road, and include an additional 828 acres of noncontiguous land to facilitate further industrial and private hangar development at the Airport. The ordinance would also extend the term of the TIRZ an additional 12 years for a new term of 30 years to promote future development around the Airport.
On July 6, 2021, the IH-20 Business Park TIRZ Board of Directors will meet to adopt a Project Plan and Reinvestment Zone Financing Plan (PFP) for the TIRZ and recommend its approval by the City Council contingent upon the City Council first adopting the ordinance to expand the TIRZ boundary. By statute the TIRZ Board adopts the TIRZ PFP and recommends its approval by the City Council. The TIRZ PFP only becomes effective after City Council approval.
Recommended/Desired Action
Following the public hearing, City staff recommends approval of the ordinances.
Attachment(s)
TIRZ Designation Ordinance No. 4579
Ordinance - Enlarging the boundaries and extending the term of Reinvestment Zone Number Twelve, City of Mesquite, Texas (IH-20 Business Park)
Ordinance - Approving a Project Plan and Reinvestment Zone Financing Plan for Reinvestment Zone Number Twelve, City of Mesquite, Texas (IH-20 Business Park) (Exhibit 1 will be provided in Friday’s mail packet)
Drafter
Ted Chinn
Head of Department
Kim Buttram