Critical Next Steps

TIF

Step 2: TIF Creation

Under authority of Chapter 311 et seq. of the Texas Tax Code, only municipalities are permitted to establish Reinvestment Zones for the purpose of TIF. For a TIF to occur the City must designate the area a Reinvestment Zone. Designation as a Reinvestment Zone can occur through City Council Ordinance meeting the criteria provided under Section 311.005 or under petition of at least 50% of the property owners. Section 311.003 specifies the procedures for designation of a reinvestment zone and participation by other taxing entities.

The TIF taxable value base is set in the calendar year in which the TIF is designated by the City. To capture increases in value for January 2006 a TIF would need to be designated prior to December 31, 2005 by City Council. Approval of Interlocal Agreements can occur after December 31, 2005 and would not impact the base year calculations.

Necessary Steps

  1. a. Resolution of Intent to Create a Reinvestment Zone by City Council; or
    b. Petition by Property Owners stating the intent to create a Reinvestment
  2. Zone for the purposes of TIF
  3. Prepare and present Reinvestment Zone Financing Plan to City Council
  4. Send formal notice and copy of Plan to other taxing entities of the intent to create a TIF
  5. Taxing entities appoint staff representative for negotiations
  6. Negotiate Interlocal Agreements and presentations to taxing entities
  7. Public Hearing and TIF Designation
  8. Formation of Board by City
  9. Board approval of the final plan
  10. City Council approval of final plan and Interlocal Agreements
  11. Formal action by tax entities
75 Woodhaven Neighborhood Redevelopment Plan