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Smith County, Texas Public Hearing on Formation of Transportation Reinvestment Zone

Smith County, Texas Public Hearing on Formation of Transportation Reinvestment Zone. November 15, 2013. Atlanta, Austin, Chicago, Dallas, Hong Kong, Houston, London, Los Angeles, New Orleans, New York, Sacramento, San Francisco, Washington DC. Background and Purpose.

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Smith County, Texas Public Hearing on Formation of Transportation Reinvestment Zone

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  1. Smith County, TexasPublic Hearing on Formation of Transportation Reinvestment Zone November 15, 2013 Atlanta, Austin, Chicago, Dallas, Hong Kong, Houston, London, Los Angeles, New Orleans, New York, Sacramento, San Francisco, Washington DC

  2. Background and Purpose • Authorized by the 80th Legislature in 2007 through the enactment of Senate Bill 1266 • Significantly improved and expanded by the 82nd Legislature in 2011 (HB 563 / SB 1420) and 83rd Legislature in 2013 (SB 1110) • Provides a mechanism for local governments to generate funding for a project that is derived from the economic growth resulting from the project.

  3. What is a TRZ? • Contiguous geographic area in the jurisdiction of a city or county • Allows a city or county to dedicate a portion of future tax revenues to the project • Can capture incremental ad valorem and/or sales tax revenue within a zone • Not a tax increase

  4. Generation of TRZ Funds

  5. Statutory Purposes of a TRZ • Promote public safety • Facilitate the development or redevelopment of property • Facilitate the movement of traffic

  6. Why Form a TRZ • Accelerates the funding and delivery of projects • Faster delivery of projects results in: • Increased economic development activity • Improved congestion, safety, mobility, air quality, quality of life

  7. Formation – Public Hearing • County must hold a public hearing at least 30 days before it designates the TRZ • At least 7 days prior, notice of the hearing must be published in the newspaper • Interested persons are permitted to speak for or against the designation of the TRZ and/or its boundaries After 12/15/2013 11/7/2013 11/15/2013

  8. Formation – Findings and Resolution • Required Findings • area within the zone is underutilized and underdeveloped • creation of the TRZ will further statutory purposes (i.e. promote safety; facilitate development or redevelopment of property; facilitate movement of traffic) • promote a transportation project • County must adopt a resolution designating the TRZ • The resolution must: • describe the boundaries of the TRZ • provide for effective date and designate the base year • establish a tax increment account

  9. Termination of a TRZ • TRZ or abatement terminates on: • December 31 of the year in which the county complies with any contractual requirement regarding the pledge of money generated by (or through) the TRZ; OR • 2. December 31 of the 10th year, if before that date the county has not used the zone for the purpose for which it was designated.

  10. Toll 49 – Project Support • TRZ is proposed to fund additional expansion of Toll 49 • Toll 49 owned* and operated by the NET RMA • Smith County TRZ proceeds remain in Smith County • Smith County not selling bonds or incurring debt (constitutional prohibition against county tax increment financing) * Formal transfer process almost complete

  11. Smith County TRZ Toll 49

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