AGENDA CAPTION:
Title
Hold a Public Hearing to receive comments for or against Ordinance 2025-14, amending the project plan and reinvestment zone financing plan for Tax Increment Reinvestment Zone No. 5 (Downtown TIRZ) to increase funding in support of an annual downtown operations plan and approved project plans submitted via an application process; authorizing the City Manager, or designee, to execute such amendment on behalf of the city; including procedural provisions; and declaring an effective date; and consider approval of Ordinance 2025-14, on the first of two readings.
Body
Meeting date: May 20, 2025
Department: Finance
Amount & Source of Funding
Funds Required: $ 2,789,486
Account Number: Contingent upon Budget Amendment approval
Funds Available: Yes - TIRZ #5
Account Name: Various
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.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Economic Vitality
Mobility & Connectivity
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
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☐ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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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 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 March 21, 2025 the TIRZ #5 Board approved an amendment to the project plan and reinvestment zone financing plan. The amendment expanded the proposed projects and increased the total by $2,789,486 for a total estimated project cost of $6,969,098.
• Alley Redevelopment: existing project, increased budget by $1,600,000
• Photometric Study of Downtown Alley: added to an existing project (Pedestrian Comfort & Safety), increased budget by $25,000
• Downtown Landscaping Capital Project: existing project, increased budget by $27,513
• Revisions to Original Estimated Projects and Annual Costs: $1,136,973
o Courthouse Grounds Renovations
o Downtown Security Cameras
o Camera Connectivity
o Planting Project
o Proposed Annual Costs through December 31, 2027
Council Committee, Board/Commission Action:
Tax Increment Reinvestment Zone #5 Board met on March 21, 2025, and approved the revised project plan and reinvestment zone financing plan which increased the budget by $2,789,486 for a total estimated cost of $6,969,098.
Alternatives:
1. Accept the recommendation of the TIRZ #5 Board and approve the amended project plan and reinvestment zone financing plan that increases the budget from $4,179,612 to $6,969,098.
2. Not accept the recommendation of the TIRZ #5 Board.
Recommendation:
City Council to approve the amended project plan and reinvestment zone financing plan as recommended by the TIRZ #5 Board.