Title
Consider/Discuss/Act on a Resolution Amending the Administration Policy and Guidelines for Tax Increment Reinvestment Zone Number One
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5C: Promote reinvestment activities and ordinance changes in McKinney’s historic downtown that balance preservation of historic character and current market needs)
MEETING DATE: September 30, 2024
DEPARTMENT: Development Services - Planning Department
CONTACT: Jennifer Arnold, AICP, Director of Planning
RECOMMENDED BOARD ACTION:
• Staff recommends approval of the proposed resolution.
ITEM SUMMARY:
• This item is to consider amendments to the Administration Policy and Guidelines for Tax Increment Reinvestment Zone No. 1.
• The proposed amendments are intended to capture the discussion and direction received at the Regular TIRZ Board meeting on August 27 Regular to clarify eligible projects, economic development opportunities and the overall administration of the TIRZ.
• Proposed additions to the Administration Policy include:
o Added a requirement that Catalyst Projects must generate Ad Valorem or Sales Tax revenues for the TIRZ;
o Added administration and funding guidelines for newly created project categories - Innovation/Pilot Program Projects and District Enhancement Projects;
o Clarified that costs associated with the finish out of space from one use/user to another are not eligible expenses under the Critical Maintenance category;
o Increased funding caps for various items under the Vacant/Underutilized Project Category:
§ Environmental Remediation, Interior/Exterior Demolition, Historic Façade Restoration increased from $25,000 to $50,000 per project, and $200,000 cap per fiscal year
§ Critical Maintenance increased from $50,000 to $100,000 per project
§ Fire Suppression increased from $50,000 to $100,000 per project
o Updated funding parameters for Meritorious Exceptions
BACKGROUND INFORMATION:
• TIRZ was created with the primary intention of collection and retaining revenues (in the TIRZ) for aggregation to facilitate long-term financing for critical transportation infrastructure and other substantial catalyst projects to support and encourage sustained revitalization of the Town Center.
• The authority of the Board of Directors is established by City Ordinance No. 2010-09-034 creating the TIRZ, Board authority includes the making of recommendations to the City Council concerning the administration of the TIRZ; and adopting (and amending as needed in the future) a project plan and financing plan consistent with the preliminary project plan and finance plan subject to final approval by City Council.
• TIRZ has the authority under Chapter 311 of the State Tax Code and Chapter 380 of the Texas Local Government Code to make loans or grants of TIRZ funds for the purposes of promoting local economic development and stimulating businesses and commercial activity within the TIRZ.
• The current TIRZ policy governing the allocation and/or awarding of TIRZ No. 1 funds for Vacant/Underutilized Sites/Buildings was originally adopted by the TIRZ No. 1 Board on September 2, 2014 and was last amended in November 2020.