Economic Development Specialist Jonathan Soseby presented the Navasota City Council with a vehicle for economic development through the creation of a Tax Increment Reinvestment Zone (TIRZ).
According to Soseby at Monday’s meeting, “The City can create a TIRZ by designating a zone that city council has declared as an area that is unable to be properly developed without special assistance.”
Reasons that might deter development are flood threat, the expense of rehabbing older buildings or extending and upgrading infrastructure.
Soseby was quick to point out that a TIRZ is not a new tax - but just how does it work?
If the combined appraised value of a TIRZ is $1,000,000 the year it’s created, that figure defines the “base” amount and those property taxes go to the General Fund. If the next year the appraised value is $1,500,000, the amount above the base - $500,000 - will go into the TIRZ fund to be reinvested within that zone.
Areas being considered include the N. LaSalle/ Blackshear area, S. LaSalle, E. Washington to the Brosig/ Cedar Creek area, out W. Washington and along Railroad Street.