The City of Alamo is constantly looking into new ways to strengthen our community and optimize our area’s profits. This is where Tax Increment Reinvestment Zones (TIRZ) come into play. These areas are specially designed and created by our City Council to bring new investment opportunities to our area. The following information will show you the important steps and requirements needed to create a TIRZ.
The Necessary Steps
Areas that don’t attract a substantial amount of market development in a timely manner can benefit from TIRZ, which help finance the cost of redevelopment while encouraging future development in the designated area. The boundaries of the zone can subsequently be improved thanks to a fund set aside and made up of tax increments. In order for a TIRZ to be created, several steps must be taken:
- A petition for a TIRZ to the city is requested by property owners who possess over 50% of the appraised value of a district. The decision to create a TIRZ could also be made by the local government, but only if less than 10% of the land is residential.
- A lifetime for the TIRZ is decided.
- The assessed values of properties in the TIRZ boundaries are frozen for tax-collecting bodies, such as water districts or counties. The property values within the TIRZ are assumed to increase in the duration of the TIRZ’s lifetime.
- The property taxes made from the property value increase will then make up the “increment” which will be donated to the improvement fund. Local taxing authorities, independent from the TIRZ creating organization, will be in charge of determining how much of the increment will be donated.
- A governing body for the TIRZ, along with the formation of the zone as a legal entity, will be established by an ordinance passed by the municipality or county. A budget for the duration of the TIRZ, which determines which projects will be made along with how they will be financed, will be created by the governing body.
With Alamo’s Success in Mind
Growth is at the top of our city’s priorities list and the Alamo EDC is ready to help new businesses and companies expand or relocate to make this goal possible. Become part of our community today and reap the benefits of a promising tomorrow. For more information about our city’s opportunities and incentives, contact the Alamo EDC.
View the TIRZ Map