Program sets aside property tax revenue to create cycle of growth
VICTORIA, Texas – On Dec. 14, the Victoria City Council approved the creation of a downtown tax increment reinvestment zone. This move is expected to create a cycle of growth and reinvestment, fueling the implementation of the downtown master plan.
Local governments may use the TIRZ as a temporary designation to encourage development. Rather than raising taxes or creating a new tax, the program promises a portion of property taxes from within the TIRZ to promote development within the same area.
As property values increase within the TIRZ, revenue from this new property value will be set aside for downtown development.
Possible uses for the funding include:
- Streetscape enhancements
- Infrastructure improvements
- Grants and incentives to encourage private development
The City Council discovered the creation of a TIRZ in the most recent adopted downtown master plan. It’s a way to fund some of the projects outlined in the plan. The plan mentions that a TIRZ can create a cycle of growth, with public investment urging private development. This, in return, will add new property value that funds further investment.
You can find more information about the TIRZ program and other helpful tools that can fund the downtown development in the “Implementation Strategies” section of the downtown master plan. You can find the plan at www.victoriatx.gov/downtownmasterplan.
COPYRIGHT 2021 BY CROSSROADS TODAY. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED.