On December 12, 2012, by Ordinance No. 2012–1048, City Council approved the designation of Reinvestment Zone Number Twenty-Four, City of Houston, Texas (Greater Houston Zone) (the “TIRZ”). The TIRZ was created for the purpose of leveraging the expenditure of public funds for eligible projects, including the planning, engineering and construction of water distribution facilities, wastewater collection facilities, storm drainage improvements, roadway and street improvement projects, sidewalks, and facilitating affordable housing and commercial development and redevelopment within the TIRZ boundaries. The TIRZ boundaries were enlarged by City Ordinance No. 2015-800 on August 26, 2015.
Pursuant to City Ordinance No. 2014-714, passed and adopted by the City Council on July 16, 2014, the City, Harris County (the “County”), the TIRZ and the Harris County Redevelopment Authority (“HCRDA”) previously entered into that certain Interlocal Agreement by and among the City, the County, HCRDA and the Zone made effective July 25, 2014, relating to the County’s participation in the Zone (the “Original County Participation Agreement”), which was subsequently amended by (i) that certain First Amended Interlocal Agreement by and among the City, the County, HCRDA and the Zone approved by City Ordinance No. 2015-815, passed and adopted by the City Council on August 26, 2015, and made effective September 9, 2015 (the “First Amended County Participation Agreement”), and (ii) that certain Second Amendment to Interlocal Agreement by and among the City, the County, HCRDA and the Zone approved by City Ordinance No. 2022-979, passed and adopted by the City Council on December 14, 2022, and made effective December 29, 2022 (the “Second Amendment to County Participation Agreement”) (the Original County Participation Agreement, as amended by the First Amended County Participation Agreement and the Second Amendment to County Participation Agreement, the “Prior County Participation Agreement”).
Under the Prior County Participation Agreement, the County, on behalf of itself and the Harris County Flood Control District (“HCFCD”), contributes 80% of the County’s tax increment and HCFCD’s tax increment to the TIRZ.
On July 30, 2025, by Resolution No. 2025-029, City Council approved the creation of the Houston Harris County Redevelopment Authority (the “Authority”) to administer the TIRZ and implement the TIRZ’s project plan and reinvestment zone financing plan.
The proposed interlocal agreement will establish the obligations of the parties related to the County’s contribution of tax increment to the TIRZ. The County’s participation rate will remain at 80% under the new interlocal agreement.
Accordingly, the Administration recommends that City Council approve the interlocal agreement.
____________________________________________________________
Gwendolyn F. Tillotson - Bell, Chief Economic Development Officer