Tax Increment Reinvestment Zones (TIRZs) are special zones created by City Council to attract new investment in an area. These zones help finance costs of redevelopment and promote growth in areas that would otherwise not attract sufficient market development in a timely manner. Taxes attributable to new improvements (tax increments) are set-aside in a fund to finance public improvements within the boundaries of the zone.
What impact do TIRZs have on the City of Houston budget?
At a TIRZ creation, City Council directs the TIRZ boards to use the increment generated to fulfill project plans that are approved by City Council. These project plans improve the geographic area designated in the TIRZ. The TIRZ submits an annual budget for implementation of its project plan. All TIRZ budgets, future capital projects and amendments to the project plan are approved by City Council.
What is the rationale behind the Sunnyside TIRZ boundaries?
The Sunnyside TIRZ boundary was drawn to encompass the major Sunnyside commercial and transit corridors in need of improvement, while complying with state laws, including keeping the percentage of residential property within the boundaries below statutory requirements.
Will area stakeholders have representation on a TIRZ Board?
It is the policy of the City of Houston that the geographic area of a TIRZ is represented by people who have an interest in the area. All board appointments must be approved by City Council.
Are TIRZs permanent?
No. The Sunnyside TIRZ has a life of 30 years pursuant to it’s enabling ordinance and is currently set to dissolve in 2045. City Council may vote to extend the life of a TIRZ beyond the life originally created.
What is the Sunnyside RDA?
The Corporation is further organized for the purpose of aiding, assisting, and acting on behalf of the City in the performance of its governmental functions to promote the common good and general welfare of the area included in Reinvestment Zone Number Twenty-Six, City of Houston, Texas (“Sunnyside Zone”) and neighboring areas, as more particularly described in City Ordinance No. 2015-1092, passed and adopted by the City Council of the City on November 10, 2015 (“Ordinance No. 2015-1092”), and Ordinance No. 2020-1051, passed and adopted by the City Council of the City on December 9, 2020 (“Ordinance No. 2020-1051) and as the boundaries may be amended from time to time (“Sunnyside Area”); to promote, develop, encourage and maintain housing, educational facilities, employment, commerce and economic development in the City.