The Midland City Council voted on Nov. 12 to approve creation of two new Tax Increment Reinvestment Zones (TIRZ) aimed at promoting economic growth, supporting public infrastructure, and enhancing community amenities. TIRZs are designed to support economic development by using the incremental increase in property tax and sales tax revenue from new development to reinvest in the zone’s infrastructure and public projects.
The TIRZ No. 3, covering 1,799 acres along the State Highway 191 corridor, would foster commercial development and infrastructure improvements in West Midland, a growing area known as an “economic driver.”
The zone will support infrastructure enhancements to attract businesses, with projects planned to improve transportation access, utility extensions, and pedestrian amenities. The highway corridor is seen as a key area for future retail, commercial, and recreational development, and will encompass upcoming developments, such as a Costco warehouse, Zoo Midland, and The Preserve. The proposed project costs for TIRZ #3 was estimated at $9.8 million.
However, not all council members were fully on board with the proposal. Councilwoman Poole expressed concerns about moving forward without first securing participation from other taxing entities. She questioned whether the city would be the sole contributor to the TIRZ, which could limit the overall effectiveness of the plan.
“Until we know whether we have participation from the other entities, if we are the only entity participating, this is no different than just directing funds toward growth in that area,” Poole said. She suggested deferring the item until further discussions were held with other potential participants, such as the school district or county, to gauge their willingness to contribute to the zone.
David Pettit with David Pettit Economic Development countered that deferring the decision could prevent the city from capturing the revenue generated by the impending developments.
The motion to approve TIRZ No. 3 passed 5-2.
TIRZ No. 4, covering 2,300 acres south of State Highway 191, west of Loop 250 West, and north of Business Interstate 20, will primarily support maintenance and capital projects at the Scharbauer Sports Complex. The area has seen growing demand for youth sports facilities, and the TIRZ will help ensure the complex can continue to meet the demand and remain a central asset for the community. The zone will also fund infrastructure improvements such as road upgrades and pedestrian enhancements in the surrounding area. The proposed project costs for TIRZ #4 is estimated at $38.4 million.
The motion to approve TIRZ No. 4 passed unanimously.
Both TIRZs are proposed to operate for 30 years, until Dec. 31, 2054, with the revenue generated helping fund public improvements in the zones. The city will be the primary contributor to the funds, with future ordinances set to finalize the city’s contribution rates.
The next steps will include developing detailed project and finance plans, which will outline specific contributions, projects, and the allocation of funds. The city will also continue to explore opportunities for other taxing entities to participate in these reinvestment zones.