Creates opportunities for additional upgrades to Infrastructure, Economic Development
EAST ALDINE – At their Board Meeting last Tuesday, July 23, the District’s board took action to adopt and finalize the TIRZ #1. This economic development tool will mean additional progress for improvements in the District, as explained at the meeting by Naina Magon, a consultant with Hawes Hill. A summary of her presentation follows:
East Aldine Receives the first TIRZ in Unincorporated Harris County
A new financing tool is coming to East Aldine that will pave the way for new improvements in the community. In December 2022 Harris County Precinct 2 spearheaded creation of Tax Increment Reinvestment Zone Number One, more commonly known as the “Aldine TIRZ.” The TIRZ is the first of its kind in unincorporated Harris County and its presence means funding for important public improvements in the area that could include water and wastewater infrastructure, roadways, sidewalks, trails, parks and more.
A Tax Increment Reinvestment Zone is a special financing tool enabled by the State of Texas to fund public improvements that encourage new development or redevelopment and attract private investment to a designated area. Cities and counties can create a TIRZ where conditions exist that substantially hinder an area’s sound growth and where development or redevelopment is not likely to occur without additional public improvements. The TIRZ takes advantage of increases in local property values to finance local improvements. At creation the total appraised value of all real property within the boundaries of the Zone is established as the “base year value.” As new development and redevelopment occur in the area the value of property increases. The taxes paid on that additional value is known as “tax increment.” Rather than going into the general fund, the tax increment goes to the TIRZ to be used to fund needed local public improvements. Once all projects are completed or after a predefined period of time the TIRZ is dissolved.
The Aldine TIRZ consists of approximately 9,475 acres located almost entirely in unincorporated Harris County in the area generally known as East Aldine – an area east of the Hardy Toll Road, south of the Sam Houston Toll Road, west of US 69 and north of West Little York.
In recent decades the East Aldine Management District, Harris County and other partners have made substantial improvements in this area to address flooding, water and sewer service, mobility, and recreation, but more remains to be done to successfully encourage development/redevelopment and provide for basic infrastructure and quality of life amenities.
The Aldine TIRZ provides one more tool to meet those needs and support the various redevelopment and economic development efforts of the East Aldine Management District and Harris County.