Rowlett Lakeshore Times > News
Rowlett TIF changes discussed
By Kenny Green, kgreen@starlocalnews.com
In 2002 the city created TIF Reinvestment Zone No. 1.
“At the time it was created other taxing entities could have participated,” said Brian Funderburk, assistant city manager. “For a lot of reasons those entities did not. The district was so large and there was no specific project so we did not get any participating agencies.”
The city adopted a financing and project plan for the TIF in 2005.
“These required plans stated that the TIF would spend $41 million. A key component of that final plan is that the TIF would pay for the cost of acquiring the right-of-way along the [turnpike],” Funderburk said.
Once construction plans were completed and the turnpike was built the project plan became obsolete because acquisition of the right-of-way was not required due to a lack of service roads along pats of the turnpike.
Funderburk said the city has to address three major issues that currently face the TIF district.
“The size of the district, [city staff] feels, may have discouraged participation from other districts. As a result we are the only participant providing funds,” Funderburk said. “In addition it is strategically located in such a manner that the vast major of the district is along the turnpike and we suspect that all of the growth that will occur over the next 10 to 15 years will occur in that district. As a result only sales taxes and fees from these new businesses would be available for operations and maintenance.”
The Texas Legislature recently approved the creation of three municipal management districts in the city and all three are located within the boundaries of the TIF.
“At the time that we did that we felt that those tools would be much more comprehensive and enticing to developers due to the flexibility they offer to install public infrastructure and amenities,” Funderburk said.
The TIF board discussed the issue in April and questioned whether to amend the city’s participation rate in the TIF and by how much. The TIF board recommended reducing the city’s participation rate to zero, effective for fiscal year beginning October 2012.
“Even if the city council agrees with the board’s recommendation for reducing that rate the council still maintains the ability to change it in the future,” Funderburk said. “There are no contractual obligations or legal encumbrances on our TIF at this point. That makes the modification of this possible.”
The city council will hold a public hearing, as required by city charter, to gather input on the changing of the city’s participation before an ordinance to reduce the rate to zero could be voted on.
“At the time it was created other taxing entities could have participated,” said Brian Funderburk, assistant city manager. “For a lot of reasons those entities did not. The district was so large and there was no specific project so we did not get any participating agencies.”
The city adopted a financing and project plan for the TIF in 2005.
“These required plans stated that the TIF would spend $41 million. A key component of that final plan is that the TIF would pay for the cost of acquiring the right-of-way along the [turnpike],” Funderburk said.
Once construction plans were completed and the turnpike was built the project plan became obsolete because acquisition of the right-of-way was not required due to a lack of service roads along pats of the turnpike.
Funderburk said the city has to address three major issues that currently face the TIF district.
“The size of the district, [city staff] feels, may have discouraged participation from other districts. As a result we are the only participant providing funds,” Funderburk said. “In addition it is strategically located in such a manner that the vast major of the district is along the turnpike and we suspect that all of the growth that will occur over the next 10 to 15 years will occur in that district. As a result only sales taxes and fees from these new businesses would be available for operations and maintenance.”
The Texas Legislature recently approved the creation of three municipal management districts in the city and all three are located within the boundaries of the TIF.
“At the time that we did that we felt that those tools would be much more comprehensive and enticing to developers due to the flexibility they offer to install public infrastructure and amenities,” Funderburk said.
The TIF board discussed the issue in April and questioned whether to amend the city’s participation rate in the TIF and by how much. The TIF board recommended reducing the city’s participation rate to zero, effective for fiscal year beginning October 2012.
“Even if the city council agrees with the board’s recommendation for reducing that rate the council still maintains the ability to change it in the future,” Funderburk said. “There are no contractual obligations or legal encumbrances on our TIF at this point. That makes the modification of this possible.”
The city council will hold a public hearing, as required by city charter, to gather input on the changing of the city’s participation before an ordinance to reduce the rate to zero could be voted on.
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