In today’s rapidly evolving societies, communities need innovative tools to usher in positive change and build a brighter future. One such tool that holds transformative potential is a Tax Increment Reinvestment Zone (TIRZ), which exists to enhance environments and make a lasting impact. The Hiram Clarke Fort Bend Redevelopment Authority TIRZ 25 (HCFB) was established in 2013 with a primary focus on enhancing the community through economic development. Today we’ll share details on the purpose of TIRZs like ours and how they are used to build thriving communities.
What is a TIRZ?
TIRZs are special zones created by our City Council that are designed to attract new investments, finance redevelopment, and promote growth in areas that would otherwise go unnoticed and house areas experiencing blight. TIRZs have the ability to help improve cities without relying solely on revenue-capped annual city budgets, all while funding public improvements that benefit the entire community for years to come. Taxes attributable to new improvements (tax increments) are set aside in a fund to finance public improvements within the boundaries of the zone.
At its core, a TIRZ is a strategic mechanism that unlocks the power of property tax revenue to fuel community development initiatives.
The City sets the property tax base year at the same time the TIRZ is created.
How Does a TIRZ Work?
- When a TIRZ is established, a specific geographic area is designated for redevelopment using existing tax revenue.
- The property tax revenue is then set aside to fund projects that enhance the community.
- Tax revenue increases within the TIRZ, known as “increments,” are reinvested into approved projects according to a project plan developed by the board of directors and approved by the city council.
- These projects can include blight removal, land revitalization, infrastructure enhancements, new public facilities, parks, green spaces, and transportation upgrades.
- No new taxes are created, and the increment generated within the community is reinvested within the TIRZ boundary through a community-driven process.
TIRZs create a multiplier effect in communities, generating long-term benefits for residents, businesses, and the local economy.
The Benefits of TIRZs
- Job Creation. Through strategic planning and development, TIRZs attract businesses and support growth among local entrepreneurs, helping to stimulate employment opportunities.
- Blight Removal. In HCFB/TIRZ 25, we take a unique approach to economic development and community enhancement through blight removal in the form of land acquisition.
- Infrastructure Improvement. TIRZs focus on improving essential infrastructure components, such as roads, sidewalks, drainage systems, and utilities.
- Mobility Improvement. TIRZs provide opportunities for safer transportation, increased accessibility, and improved quality of life for residents and visitors alike.
- Community Enhancement. TIRZ investments in public spaces, parks, and community centers, cultivate vibrant gathering places that foster recreation, and cultural exchange.
- Collaborative Community Engagement. One of the most remarkable aspects of TIRZs is their emphasis on community engagement. The success of TIRZ projects relies heavily on collaboration between residents, businesses, stakeholders, and local government agencies. By involving the community, TIRZs ensure that the projects implemented truly reflect the needs and aspirations of the people they serve.
Through TIRZs, we can channel the financial resources necessary to revitalize neighborhoods, promote economic growth, and create sustainable infrastructure that caters to the needs and aspirations of our community. TIRZs are catalysts for meaningful change, empowerment, and sustainable development. They not only improve the present state of our community but pave the way for a vibrant and prosperous future. To learn more about the Hiram Clarke Fort Bend Redevelopment Authority TIRZ 25 (HCFB), click here. For monthly updates, sign up for our newsletter by clicking here.