MDD considers second TIRZ

The Baytown Sun
By Mark Fleming, Special to The Sun

Development along Interstate 10, and potential development near Highway 99 on the south side of town, were the topics for a Baytown City Council workshop before its Thursday night meeting.

Specifically, Victor Brownless, director of finance and strategic growth, and Abdi Yassin, TIRZ administrator, updated the council on potential changes to the city’s Tax Increment Reinvestment Zone and the possible creation of a second TIRZ.

A TIRZ is a defined geographic area where a part of new tax revenue is dedicated to public improvement in that area for a set period of time. It is often used either in areas of new growth or in declining areas to stimulate new investment.

It does not increase or decrease taxes, and does not provide direct incentives to developers. Instead, it designates some tax revenue for improvements to that particular zone.

For example, if a property is worth $1 million when a zone is created, and is improved to be worth $3 million, the city would continue to receive tax money on the whole $3 million. However, the tax money on the “new” $2 million would have to be spent within the zone. 

Typical uses include both core infrastructure like streets, water and sewer and also public amenities like parks and trails.

Baytown’s existing TIRZ #1 was created in 2001 with 350 acres in the San Jacinto Mall area, and a value of $52.8 million. It has now grown to 833 acres, and the old mall property has been taken out. The city is considering adding the mall property back in, which would help finance the area’s development as new construction begins. That would bring it to an estimated $1,022 acres with an estimated value of $315.2 million. 

That TIRZ now included several tracts in northwest Baytown as well as an area along Kilgore Parkway in Chambers County.

Yassin introduced a conceptual map of a TIRZ #2, which would include property along both sides of Highway 90 between Goose Creek and Cedar Bayou, and also Bayland Island. It would include all of the Evergreen area.

Though not included on the map, Brownless said it would likely include the Alexander Drive corridor and the Texas Avenue corridor.

About half of the funding from that TIRZ would be for parks, recreation, trails and open space, with the rest for transportation, drainage and water distribution.