 Overview of Project  Economic Development Tools  Municipal Management Districts  Tax Increment Reinvestment Zones  Session Review, Q&A

 Boundary  Existing Conditions  Land Uses  River Bend  Property Values

 Municipal Management Districts  Tax Increment Reinvestment Zones

 Purpose  Created to promote, develop, encourage and maintain employment, commerce, transportation, housing, tourism, recreation, arts, economic development, safety and the public welfare within a defined area.  Eligibility Criteria  Created through State Legislature pursuant to stakeholder petition  Area devoted primarily to commercial development or business activity  Powers and Duties:  Governed by the municipality in which it is created  May levy taxes, assessments, or impact fees in accordance with its Service Plan and only by petition of affected property owners

 Permitted Services and Projects  District may provide services and improvements related to:  Economic development  Business recruitment  Promotion of health and sanitation  Public safety, traffic control and recreation  Landscaping, lighting and signs  Streets, walkways and drainage  Solid waste, water, sewer and power facilities  Parks, historic areas and works of art  Parking facilities and transit systems

 Revenue  District may raise revenue through taxes, assessments or impact fees  Assessments must be requested by petition of affected property owners  Bonds  A district may issue bonds as allowed by its local governing municipality or county

 Administration  A board of directors is appointed in creating legislation  New appointments/reappointments administered by board and apporoved by local governing authority  Directors sever four-year, staggered terms  Duration  Municipal management districts exist until dissolved by:  Petition of property owners  Vote of the board  Resolution of the local governing authority

 Public Safety  Provide graffiti abatement and prevention  Enhance public street lighting  Establish partnerships with police and other public safety agencies  Enhance traffic control devices where necessary  Initiate safety awareness programs and activities  Advocate for security needs with county, city, state and federal agencies

 Business Development  Establish marketing plan  Develop cohesive growth strategy  Support preservation of historic properties and structures  Provide public relations and marketing support  Develop District web site and other media  Sponsor market research  Partner with local chambers of commerce and business organizations

 Transportation Planning  Develop transportation and mobility master plan  Enhance amenities for pedestrians and cyclists  Improve public transportation shelters, seating and trash services  Provide for traffic flow studies and assist in mobility projects  Way finding signage  Parking improvements

 Visual Improvements & Cultural Promotion  Streetscape, planter and pocket parks  Support and maintain public art  Provide supplemental mowing, trash pick up and bandit sign removal  Preserve, enhance and expand public parks and trails  Create District identity and inviting streetscapes

 Purpose  A TIRZ is implemented to help finance public infrastructure development that would not occur “but for” creation of the Zone.  Powers and Duties  Zone exists to finance public improvements and enhance infrastructure within a defined area  Tax increment financing can only be initiated by a city or county  County is eligible to participate by agreement

 Eligibility Criteria  A city must conclude that one of the following is true of conditions within the Zone:  Area is predominantly open with physical and economic constraints to development  An area’s tax base is relatively low  There is significant potential to stimulate new development  Defective or inadequate sidewalks, utilities or street layout  Faulty lot layout in relation to size, adequacy, accessibility or usefulness

 Concept  City establishes a Zone and it’s real property Base Value  Private or public investors construct public infrastructure within Zone  Real property values increase  Increase in real property value (increment) pays for new infrastructure  Zone expires, taxing jurisdiction retain total tax revenue

 Revenue  Revenue is derived from the increment created by public/private investment  Bonds  The TIRZ may issue bonds by the city or through other entity  Project Plan and Finance Plan  Governs and delimits proposed use of incremental revenues

 Permitted Uses of Increment  Capital project costs including but not limited to:  Paving  Drainage  Sanitary Sewer  Water  Public Use Facilities  Streets & Street Lights  Parking Facilities  Professional services including but not limited to:  Architectural  Planning  Engineering  Legal  Imputed administrative costs  Environmental Studies  Operation and Administration of the Zone  Financing

 Administration  Zone typically administered by 7 member board of directors  Board appointed by the city and other taxing jurisdictions  Members are appointed for two-year terms  Vacancies filled by city (or taxing unit) appointment  Duration  Zone is dissolved when the earlier criteria is met:  Termination date designated in the ordinance  TIRZ termination ordinance adopted subsequent to the creation of the zone  When all project costs, notes, other obligations, bonds and interest on those bonds have been paid in full

Houston P.O. Box Houston, Texas (713) Arlington 805 E. Abram, Suite 200 Arlington, Texas (817) Rio Grande Valley P.O. Box McAllen, Texas