City of Seguin gives TIRZ the green light for its future
23 Aug 2024
Downtown, City Council, City of Seguin
Seguin, TX, USA / Seguin Today
Darren Dunn
(Seguin) — There’s a new tool being used to allow the city to make more investments in the future of downtown Seguin. The city’s first Tax Increment Reinvestment Zone, better known as TIRZ, has now officially been approved by the Seguin City Council. The initial reinvestment zone covers much of the downtown area.
Kyle Kramm, the city’s Main Street and CVB director, says the zone was expanding to include a few areas outside of the downtown historic district.
“It is approximately 150.7 acres and it will have a baseline value of $64.6 million. Over the life of the TIRZ — I found that will be 25 years which means that it will expire on Dec. 31, 2049. It will have raised about $8.5 million for the TIRZ area. A later resolution will come before the council to establish the board members of the TIRZ,” said Kramm.
The TIRZ is not a tax increase, but it allows the city to take existing revenue and pour that back into zone. The money in the TIRZ can be used to make a number of improvements.
Economist Travis James, vice-president of the firm TXP, has been working with the city on the creation of the TIRZ for the downtown area. He says it’s a value tool to have in the city’s economic development toolbox.
“The base year is 2024. The first year increment will be next year ’25 and that’s not due until Jan. 31 of 2026. If you like this tool, we just have to put it in place and it does take time for that increment to build up over time. It’s not a tax increase — all the things that we talked about in the past. The next steps would be if you approve it, you would have a board. We would have to create what’s called the final project and finance plan. The board approves it and then that final plan comes back to you. So, you are not done seeing me yet. You will see me a few more times along the way,” said James.
The council still needs to appoint a board that will help to oversee the TIRZ. Funding from the TIRZ can be used to tackle a number of public improvement projects, including sidewalks, building facades, utility upgrades and more.
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