2017-010 Summary of the Denton ITF Zone 1 Bd.
Date: January 20, 2017 Report No. 2017-010
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Summary of the January 6, 2017, meeting of the Denton Tax Increment Finance Zone No. 1
Board (“Downtown TIF Board”)
EXECUTIVE SUMMARY:
The Downtown TIF Board met in January to receive reports, hold discussions, and give staff
direction regarding future projects for which TIF funds could be used. General direction to staff
was to move forward with planning for the use of TIF funds for a municipal parking garage
project. The Board asked to be briefed on the plans as they develop.
BACKGROUND:
The City of Denton created Tax Increment Reinvestment Zone (TIRZ) Number One (Downtown
TIF/TIRZ) in 2010. Tax increment financing originated as a tool for governments to publicly
finance needed improvements and enhance infrastructure within a defined area in order to
stimulate private development and redevelopment. An ad valorem valuation base is established
the first year, and the revenue from the increased valuation from subsequent years is allocated
into a TIRZ fund to support development projects.
In order to establish a TIRZ, a Project Plan and Finance Plan must be developed and adopted by
the City Council. The Project Plan and Finance Plan define the boundaries, scope, feasibility, and
projects that will be funded by the TIRZ.
PROJECT PLAN ESTIMATED COST, $M
Parking / Transportation 8.0
Complete Streets 7.9
Support for Downtown Projects 4.9
Utility / Drainage Improvements 4.0
TOTAL 24.8
In 2014, the Project Plan was amended to reflect the following change: “if the City owns
property within a TIRZ boundary, it has the authority to utilize that property to accomplish
economic development objectives that are consistent with the TIRZ Project Plan.”
Date: January 20, 2017 Report No. 2017-010
DISCUSSION:
During the meeting, the following presentations were made:
Julie Glover reviewed the boundaries of the Downtown TIF and the parameters of the
Project Plan.
Mark Nelson presented information about possible transportation-related projects
downtown, including sidewalk projects and a 360-stall, $7.2 million parking structure to
be located across McKinney Street from City Hall. He informed the Board that the
sidewalk projects were budgeted in the General Fund for FY 2017.
Eric Schmitz, owner of 207 W. Hickory, requested TIF funding for a project to relocate
utilities in the right-of-way on Walnut Street, close Walnut Street, and build a parking
garage on the existing lot south of Walnut Street.
CONCLUSION:
The Board indicated its preference for the use of budgeted General Fund monies for downtown
sidewalk improvements.
The Board reiterated its desire to preserve the TIF funds for use on large-scale projects, such as a
municipal parking garage, instead of smaller-scale projects such as sidewalk improvements.
The Board tabled Schmitz’s request pending its request for more information about the project.
STAFF CONTACT:
Caroline Booth, Director of Economic Development
940-349-7751
Caroline.Booth@cityofdenton.com