TIRZ board members hear process presentation

The Baytown Sun
By Darlene McPherson, Special to The Sun
February 20, 2023

The City of Baytown held a joint meeting of the board of directors’ Redevelopment Authority and Tax Increment Reinvestment Zone No.1 on Feb. 7. 

Mike Beard, a TIRZ No. 1 board of director member, requested a list of project proposals and the amount of money the city is holding in the tax incremental funding for TIRZ No. 1. 

TIRZ No. 1 tax incremental funding is $4.7 million, but Beard was told his question could not be discussed because it was not on the agenda. 

 “I asked for this information at the last meeting. It should have been on the agenda,” Beard said.

A project for drainage and the San Jacinto Marketplace project were briefly mentioned, but no further discussions were held.

Abdi Yassin of MuniCap, Inc. Public Finance has been engaged by the board as a special consultant assisting with the administration of Baytown redevelopment under the authority of TIRZ. Yassin is working with Emilio Levario, Baytown senior economic development analyst.

Yassin addressed the joint meeting, stating that for that meeting’s purpose, he wished to review the function of a TIRZ and the Texas code and authority under which they would be operating. First, the TIRZ operates under Chapter 311 of the Texas Property Tax Code. The board refers to the statutory framework of Chapter 311 for any of its development or redevelopment activities. The operations of a TIRZ in Baytown are to rebuild blighted area infrastructure.

The intention of rebuilding is to reinvest future taxes incrementally and reapply funds to infrastructure lacking or insufficient in specific areas identified by the board. Additionally, the funds may be applied to new development. TIRZ is a fast-tracking financing mechanism to apply to one of three basic areas: new development; redevelopment; and, rebuilding infrastructure such as roads, water, drainage, and parks by reinvesting future revenue. When the term of the TIRZ is finished, the remaining funds coming in will go into the city’s general revenue.

The cardinal controlling instrument is the project plan. The project plan must be followed as it was approved by the board and public support. If new ideas or propositions are not consistent with the project plan, then the plan must be updated. There are required public hearings to move forward with a TIRZ project. If new ideas are presented that are not consistent with the project plan, which must follow Chapter 311, then the board has an obligation to update the plan or reject the new ideas.

A TIRZ project must identify boundaries of the intended improvement and designate a board of five to 15 members who serve for two years. The TIRZ board may not issue bonds or any other debt, impose fees or taxes, or use eminent domain to acquire land.