TIRZ

TIRZ

The City of Donna created Tax Increment Reinvestment Zone Number Two (the TIRZ) to promote and encourage construction of facilities for mixed use commercial, light and heavy industrial, and warehouse and distribution, as well as construction of retail centers and both single and multi-family housing, for a combined projected value of over $758,000,00. All of this will be accomplished in an area located in south Donna, Texas, that has had significant impediments to development due to a lack of infrastructure. A further rationale for creation of this TIRZ was to maximize the positive impact of the new Alliance International Bridge to the local economy.

 

A TIRZ is a financing tool authorized by the State Legislature in Chapter 311 of the Tax Code. The purpose of the statute is to allow municipalities to provide an incentive to develop areas that lack the infrastructure or have other impairments to desirable growth and development.

 

When a zone is created, the “base value” of the area is frozen for tax purposes. The existing taxing entities continue to receive tax revenues as before; however, the increased (“the increment”) tax revenue generated by new development within the zone will be used to reimburse costs related to public improvements within the zone as well as other related allowable expenses. The zone will have a life equal to a predetermined number of years. Upon reaching that date, or when all costs have been reimbursed, whichever comes first, the zone will terminate. Upon termination, the increased tax revenue belongs to the respective taxing entities.

TIF ASSESSED VALUE (AV) OVER PROJECT LIFE

The land within the TIRZ was annexed in early 2007. Like a number of tracts of land in the City of Donna, it had remained vacant because either the costs associated with developing the land prohibited the efficient use of the property or the property was unavailable for development when development should have occurred and current development costs were uneconomical. The area within the TIRZ includes structures that are in blighted condition and undeveloped

The projected benefits of the TIRZ are:

 

  • Donation of land for bridge, road and rail related construction.
  • New commercial opportunities for area residents and new and relocating companies looking for commercial/industrial building sites.
  • Expansion of the manufacturing and distribution economic base of the City of Donna through new rail sites for industrial uses.
  • Increase in employment opportunities for local residents.
  • Enhancement and increase in the population within the area.
  • Provision for pedestrian safety and access through sidewalk and street light construction.
  • Provision of affordable and secure multi-family housing, which includes handicap-adapted units.
  • Provision for elementary and middle school sites.
  • Enhancement of the quality of life within the development through landscaping and increased recreational opportunities.
  • Creation of an affordable housing initiative for the benefit of residents inside and outside of the TIRZ.
  • Generation of significant revenue in the form of sales tax, utility fees, personal property tax, etc.
  • Addition of over $750,000,000 to the tax base of the City of Donna and Hidalgo County.Maximization of the positive economic impact of the new Alliance International Bridge. The TIRZ will leverage the economic opportunities the bridge creates for the benefit of the City of Donna and Hidalgo County residents.

The commercial, industrial, retail and residential development within the TIRZ, in conjunction with the new Alliance International Bridge, will position the City of Donna to market itself as a highly attractive destination for employers to re-locate or expand their operations.