SUBJECT: An Ordinance approving and authorizing an interlocal agreement between the City, Harris County, TIRZ #20 and the Southwest Houston RDA to provide for the participation of the County in the TIRZ for the purpose of funding capital projects and maintenance for the capital projects as needed.
RECOMMENDATION: (Summary) Adopt an ordinance approving and authorizing an interlocal agreement between the City, Harris County, TIRZ #20 and the Southwest Houston RDA to provide for the participation of the County in the TIRZ for the purpose of funding capital projects and maintenance for the capital projects as needed.
SPECIFIC EXPLANATION:
The City Council approved the Tax Increment Reinvestment Zone (TIRZ No. 20) on December 15, 1999, and the Southwest Houston Redevelopment Authority on February 23, 2000.
Section 311.002 of the Texas Tax Code refers to the meaning of a taxing unit as “a county, an incorporated city or town (including a home-rule city), a school district, a special district or authority (including a junior college district, a hospital district…that is authorized to impose and is imposing ad valorem taxes on property even if the governing body of another political unit determines the tax rate for the unit or otherwise governs its affairs.
The project plan describes the project priorities, projected capital costs, projected revenue over the span of the TIRZ, the participating taxing units and the participation rate for each participating unit. The project plan was approved by the City Council on April 19, 2000. The project plan has been amended five times since the inception of the TIRZ with the last amendment approved on December 14, 2022.
On October 26, 2023, the TIRZ Board and the Redevelopment Authority Board approved an Interlocal Agreement (“ILA”) with Harris County for Harris County to participate as a taxing unit in TIRZ No. 20. The Harris County Commissioner’s Court approved the ILA on October 31, 2023. The ILA provides that Harris County, Precinct 4, will participate at 100% of the funds actually collected with respect to the Captured Appraised Value from the County’s total ad valorem tax rate (less the portion of the County’s tax rate levied for debt service, and not including any taxes levied by the County on behalf of the Harris County Flood Control District, Harris County Hospital District, Port of Houston Authority, or similar entities). The ILA further provides that 33% of the participation rate must be used to provide affordable housing and 10% of the participation rate will be retained by Harris County to the maintenance and operations of facilities and projects related to the project plan.
The term of the ILA begins with the countersignature of the City Controller and terminates on December 31, 2041.
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Andrew F. Icken, Chief Development Officer