SUBJECT: An Ordinance approving and authorizing an Interlocal Agreement among the City of Houston, Texas, Harris County, Texas, Reinvestment Zone Number Twenty-Three, City of Houston, Texas (Harrisburg Zone), and the Harrisburg Redevelopment Authority relating to the participation of Harris County in Reinvestment Zone Number Twenty-Three.
RECOMMENDATION: (Summary) Adopt an Ordinance approving and authorizing an Interlocal Agreement among the City of Houston, Texas, Harris County, Texas, Reinvestment Zone Number Twenty-Three, City of Houston, Texas (Harrisburg Zone), and the Harrisburg Redevelopment Authority relating to the participation of Harris County in Reinvestment Zone Number Twenty-Three.
SPECIFIC EXPLANATION:
On September 28, 2022, the City Council approved a Development, Construction, Operations, Maintenance and Concession Agreement (City Contract C79841, the “BBE Agreement”), executed between the City, Harris County and Buffalo Bayou Partnership, relating to Buffalo Bayou East and providing for the financing, operations, and maintenance of certain planned improvements to parks, trails, streets and public facilities to be constructed partly within the boundaries of Reinvestment Zone Number Twenty-Three ( “TIRZ 23”) and partly within the boundaries of Reinvestment Zone Number Eighteen (“TIRZ 18”). The proposed improvements include (1) the restoration, expansion and improvement of Tony Marron and Japhet Creek Parks; (2) new hike and bike trails along Buffalo Bayou Parkway from downtown and Lockwood Dr.; (3) enhanced public streets connecting to the park and (4) other improvements and facilities. The 30-year BBE Agreement has an initial term date through 2052 with two 30-year renewal options.
The proposed $310M of improvements and infrastructure will be financed in part by a $100M philanthropic contribution from the Kinder Foundation. In consideration for the philanthropic contribution, the City, Harris County and Buffalo Bayou Partnership agreed to fund a long-term maintenance plan for the improvements. The shared allocation of the maintenance obligation is 25%, 25% and 50% respectively. The BBE Agreement also contemplates that Harris County will fund its greenspace maintenance obligation through county tax increment generated from TIRZ 18 and TIRZ 23.
Under this Interlocal Agreement, Harris County will participate in TIRZ 23 at 100% of county tax increment actually collected or an amount to be determined solely by Harris County, whichever less. The Interlocal Agreement will allow Harris County to contribute county tax increment towards funding its greenspace maintenance obligation through the initial 30-year term of the BBE Agreement. Harris County’s tax increment participation is limited to the geographic boundaries of TIRZ 23.
It is anticipated that the Interlocal Agreement will be approved by TIRZ 23 and Harrisburg Redevelopment Authority on October 23, 2023, and by County Commissioners Court on October 31,2023.
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Andy Icken
Chief Development Officer