TIRZ 5 FAQ
WHAT IS A TIRZ?
“TIRZ” stands for “tax increment reinvestment zone.” It is a financing tool the State Legislature created to assist cities and counties in developing or redeveloping certain areas. You can think of it as a pot of money collected from property tax on the increased value within the TIRZ. That money can be used to improve the same district from which the money was collected.
HOW DO TIRZ-FUNDED PROJECTS BENEFIT MY NEIGHBORHOOD?
According to the Texas Comptroller, a TIRZ project jumpstarts development to get things moving a bit faster and, ultimately, generate new tax revenue. Overall, TIRZ projects help with:
- building needed public infrastructure in areas lacking adequate development to attract businesses.
- encouraging development, thereby increasing property values and long-term property tax collections.
- reducing the cost of private development by providing reimbursement for eligible public improvements.
WHAT QUALIFIES FOR A TIRZ PROJECT?
- The project must support those areas in downtown San Marcos as outlined in the City’s TIRZ#5 Project and Financing Plan.
- Support multi-modal transportation and mobility including sidewalks, downtown shuttle services.
- Enhancement of downtown area including lighting, safety, and other aesthetic features.
- Acquisition of property for parking and other public priorities and related operations and maintenance costs.
- The project must not have been started more than three months prior to applying.
WHERE IS ZONE 5?
Zone no. 5 consists of approximately 244 acres in the downtown area. It extends from Texas State University to the North, to IH-35 to the South, CM Allen and McKie on the East, and several blocks to the West.
You can also find an interactive version of this map here. It will allow you to zoom into zone no. 5 and see individual streets.
WHO CAN APPLY FOR TIRZ FUNDING?
Any property owner or business owner located within the boundaries of zone no. 5 can apply for TIRZ funding.
HOW LONG WILL TIRZ FUNDING LAST?
This term of TIRZ funding ends on December 31, 2027. However, the TIRZ #5 board can decide on whether it should expire or if it should be extended.
IS THERE A DEADLINE FOR APPLICATIONS?
The TIRZ #5 Board will consider applications twice per year. The next deadline is September 30. However, applications can still be submitted beyond that date, as the next deadline is March 31. You can find the application here.