AGENDA CAPTION:
Title
Hold a public hearing to receive comments for or against Ordinance 2026-34, amending the project plan and reinvestment zone financing plan for the Tax Increment Reinvestment Zone No. 5, Downtown TIRZ, to increase funding in support of an annual downtown operations and project plan; authorizing the City Manager, or her designee, to execute the amendment on behalf of the city; including procedural provisions; and declaring an effective date; and consider approval of Ordinance 2026-34 on the first of two readings.
Body
Meeting date: August 18, 2026
Department: Finance
Amount & Source of Funding
Funds Required: $937,900
Account or Project Number (C = CIP funds): Multiple
Funds Available: Yes, Contingent on approval of FY2026-27 Budget
Account Name: Multiple
Fiscal Note:
Prior Council Action: November 15, 2011 - approved a preliminary project plan and reinvestment zone financing plan. December 14, 2011 - creation of Reinvestment Zone for Tax Increment Financing purposes. June 18, 2020 - adopted amended project plan and reinvestment zone financing plan. June 23, 2022 - adopted amended project plan and reinvestment zone financing plan. June 03, 2025 - adopted amended project plan and reinvestment zone financing plan. December 2, 2025 - adopted amended project plan and reinvestment zone financing plan. March 31, 2026 - adopted amended project plan and reinvestment zone financing plan.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Economic Vitality
Mobility & Connectivity
Quality of Life & Sense of Place
Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Arts and Culture - Choose an item.
☒ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Housing + Neighborhoods - Choose an item.
☐ Land Use + Community Design and Character - Choose an item.
☒ Parks & Public Spaces + Health, Safety & Wellness - Choose an item.
☐ Transportation - Choose an item.
☐ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Downtown Master Plan
Background Information:
TIRZ #5 was created in 2011, it consists of approximately 244 acres in the downtown core. The City and Hays County agreed to participate equally in a tax increment reinvestment zone to generate revenues to be allocated for parking, including acquisition of land, multi-modal transportation/mobility, sidewalks, safety considerations, improved lighting, and overall enhancement of downtown.
• On December 14, 2011, City Council approved the creation of TIRZ #5. The proposed project was the construction and redevelopment of Hays County Justice Center site/building. The total estimated cost was $331,019.
• On June 18, 2020, City Council approved an amendment to the project plan and reinvestment zone financing plan. The amendment expanded the proposed projects and increased the total estimated project costs to $4,179,612.
• On June 23, 2022, City Council approved an amendment to the project plan and reinvestment zone financing plan. The amendment expanded the proposed projects, the total estimated project costs of $4,179,612 remained.
• On June 3, 2025, City Council approved an amendment to the project plan and reinvestment zone financing plan. The amendment expanded the proposed projects and increased the total estimated project costs to $6,969,098.
• On December 2, 2025, City Council approved an amendment to the project plan and reinvestment zone financing plan. The amendment expanded the proposed projects and increased the total estimated project costs to $7,144,098.
• On March 31, 2026, City Council approved an amendment to the project plan and reinvestment zone financing plan. The amendment to increase the budget covers the costs of the board approved hybrid Downtown Alley Lighting Plan, increasing the total estimated project costs to $7,344,098.
• On July 6, 2026, TIRZ #5 Board approved an amendment to the project plan and reinvestment zone financing plan. The amendment to increase the budget covers the costs of TIRZ #5 and Main Street recommended projects, increasing the total estimated project costs to $8,281,998.
Council Committee, Board/Commission Action:
Tax Increment Reinvestment Zone #5 Board met on July 6, 2026, and approved the revised project plan and reinvestment zone financing plan which increased the budget by $937,900 for a total estimated cost of $8,281,998.
Alternatives:
1. Accept the recommendation of the TIRZ #5 Board and approve the amended project plan and reinvestment zone financing plan by $937,900 for a total estimated project cost of $8,281,998.
2. Not accept the recommendation of the TIRZ #5 Board.
Recommendation:
City Council to approve the amended project plan and reinvestment zone financing plan by $937,900 for a total estimated cost of $8,281,998 as recommended by the TIRZ #5 Board.