| | | | | | | | City of Georgetown, Texas
City Council Special Meeting
December 17, 2021 |
| | | | | | | | SUBJECT:
Second Reading of an Ordinance to consider the designation of the Tax Increment Reinvestment Zone (TIRZ) Number Six (North Georgetown) under Chapter 311 of the Texas Code for approximately 224 acres of land in the City Limits, generally located on the west of IH35, north of the HWY195 intersection and the adoption of a Preliminary Project Plan and Financing Plan for the proposed TIRZ -- Michaela Dollar, Economic Development Director |
| | | | | | | | ITEM SUMMARY:
An Ordinance of the City Council of the City of Georgetown, Texas, designating a certain area within the City of Georgetown, Williamson County, Texas, as Tax Increment Financing Reinvestment Zone Number Six (“North Georgetown TIRZ”); establishing the boundaries of such Zone; creating a Board of Directors for said Reinvestment Zone, and other matters related thereto; containing findings; providing a repealing clause; providing a severability clause; and providing an effective date.
The Georgetown City Council desires to create Tax Increment Reinvestment Zone (TIRZ) #6, aka the North Georgetown TIRZ, consisting of approximately 224 acres of land generally located along IH35, north of the HWY195 intersection, pursuant to the Tax Increment Financing Act, as codified in Chapter 311 of the Texas Tax Code, as amended (the “Act”).
The purpose of the TIRZ creation is to finance public infrastructure needed to develop the site for industrial and commercial use in partnership with Jackson Shaw (the Developer). The land within the proposed TIRZ has been entitled for these uses as well as a portion for multi-family.
Currently, the site does not have wastewater infrastructure in place, which has impeded the development of this site and the surrounding area. The TIRZ would aid in offsetting the cost of construction of a sanitary sewer interceptor along the Dry Berry Creek bed, as outlined in the City’s wastewater master plan. The line would be constructed by the Developer to City requirements and become city-owned public infrastructure upon completion and acceptance by the City.
This line would connect with the Berry Creek Interceptor, which is a current City capital improvement project. The ultimate build of the infrastructure will allow for wastewater service for a large area of the City of Georgetown spanning from HWY195 to IH35, including the proposed TIRZ. The estimated cost of the Dry Berry Creek interceptor line is approximately $10 million.
The TIRZ will take effect at the adoption of the ordinance by City Council, which will set the base year at 2021 for the assessed valuation. The City will participate by contributing a portion of the incremental increase in real property ad valorem taxes following a 15-year contribution schedule that begins in 2024. The contribution schedule is 60% of the incremental tax increase in years 1-5, 55% of the incremental tax increase in years 2-10, and 50% of the incremental increase in years 11-15 with the last year of contribution being 2038.
Following approval of a development agreement, the Developer will then be reimbursed for the expense of the public wastewater infrastructure construction utilizing annual payments from the TIRZ fund. The maximum amount of reimbursement is $8.5 million, or the end of the 15-year TIRZ period, whichever occurs first. The Developer must complete construction of the wastewater line and 400,000 square feet of industrial development prior to receiving reimbursement payments. The first 400,000 square feet of industrial development can be serviced by temporary septic until the wastewater extension is completed. All other development within the TIRZ must be serviced by the wastewater line.
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| | | | | | | | FINANCIAL IMPACT:
A maximum of $8,500,000, financed by the tax increment generated within the TIRZ boundaries |
| | | | | | | | SUBMITTED BY:
Michaela Dollar, Economic Development Director |
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