The Midland City Council is working on establishing two Tax Increment Reinvestment Zones (TIRZ) in west Midland. These zones aim to facilitate future development planning in specific areas of the community. On November 12, the council approved the first reading of an ordinance to create these TIRZ districts, with second readings scheduled for December.
The first proposed district, Tax Increment Reinvestment Zone No. 3, will cover nearly 1,800 acres north and south of State Highway 191 and west of State Highway 158 and Avalon Drive. The second district, Tax Increment Reinvestment Zone No. 4, will encompass 1,066 acres along the Loop 250 west corridor from the Scharbauer Sports Complex to the Cinergy entertainment complex.
A TIRZ sets a baseline concerning real property values for a taxing entity. As property values increase, part of that increment goes to the taxing entity while another portion funds the TIRZ. Over a period of 30 years, this can generate millions for projects such as public utilities, transit improvements, street enhancements, economic development grants, parks and recreation facilities.
The City of Midland estimates that TIRZ No. 3 could yield over $9.8 million at a participation rate of 50% for proposed projects. Meanwhile, TIRZ No. 4 could potentially bring in around $38 million—an essential amount needed to maintain and operate the Scharbauer Sports Complex since its fund is expected to deplete within three years after the discontinuation of the 4B tax in 2017.
Additionally, Beal Park is anticipated to be included in TIRZ District No. 4.
Each TIRZ has defined boundaries, terms, a board of directors, and preliminary project and financing plans. Multiple taxing entities can participate in a single TIRZ; this is exemplified by TIRZ No. 2 downtown which includes participation from Midland County, The Hospital District, and Midland College alongside the city itself. It is expected that discussions with other entities regarding participation in these new west Midland districts will occur soon.