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City, commissioners sign off on county’s first TIF agreement
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| Terrell city leaders joined Kaufman County commissioners Monday to thank them for their work on forming the county’s first tax increment finance zone. The TIF plan calls for the development of 26 projects over a 30-year term. |
The Terrell City Council and the Kaufman County Commissioners have both signed off on a much-anticipated interlocal agreement between the City of Terrell and Kaufman County to support the county’s first tax increment finance zone or TIF.
“I am excited about the Terrell tax increment finance zone,” said Kaufman County Judge Wade Gent. “This is a great thing for Terrell and the county and will hopefully serve as a guide for other municipalities to follow.”
On Monday, City Council members went to Commissioner’s Court to thank the County for their work. “When we look back on today’s formation of the TIF in 5 or 10 years from now, we will know that this is one of the most significant events we have ever had in this county. It is a good deal for the City and the County,” said Terrell Mayor Hal Richards.
Tax increment financing is a method of public financing that relies on developers to build infrastructure and then be reimbursed based on actual taxes received. With federal and state dollars less available, tax Increment financing has become a mechanism of choice to lure developers without raising taxes.
The city uses a tool like this to encourage development within the zone. When the district is created, the assessed value of the area is determined and the taxing entities continue to receive taxes for the area at that rate. As development occurs and the assessed value increases, the difference between the original taxable value and the increased value is called the increment and this is the amount set aside to be used to make improvements for eligible projects in the tax increment finance zone. Terrell is contributing 75 percent of the taxes captured while the county has pledged 50 percent. The tax increment finance money is used exclusively for public improvements.
The president of the Tax Increment Finance Board of Directors, Don Thurmond, who also serves as deputy mayor pro tem on the Terrell City Council, was pleased to see the agreement come to fruition.
“This letter between Terrell and Kaufman County is an agreement to cooperate in development of the City and County by using the unique finance tool of the TIF,” Thurmond said.
The Terrell Tax Increment Finance Zone includes more than 4,000 acres that are currently being used to graze cattle. Plans call for 26 projects within the development zone that will net $158,500,000 over the 30-year term of the zone and developers are already expressing interest in applying for the funds.
Terrell City Manager Torry Edwards said the city’s planned tax increment financing reinvestment zone, is already attracting significant interest from commercial developers and realtors. In a special City Council meeting held this morning, Council unanimously passed the ordinance creating the Tax Increment Finance Zone No. 1 on second reading.
“I am excited about the Terrell tax increment finance zone,” said Kaufman County Judge Wade Gent. “This is a great thing for Terrell and the county and will hopefully serve as a guide for other municipalities to follow.”
On Monday, City Council members went to Commissioner’s Court to thank the County for their work. “When we look back on today’s formation of the TIF in 5 or 10 years from now, we will know that this is one of the most significant events we have ever had in this county. It is a good deal for the City and the County,” said Terrell Mayor Hal Richards.
Tax increment financing is a method of public financing that relies on developers to build infrastructure and then be reimbursed based on actual taxes received. With federal and state dollars less available, tax Increment financing has become a mechanism of choice to lure developers without raising taxes.
The city uses a tool like this to encourage development within the zone. When the district is created, the assessed value of the area is determined and the taxing entities continue to receive taxes for the area at that rate. As development occurs and the assessed value increases, the difference between the original taxable value and the increased value is called the increment and this is the amount set aside to be used to make improvements for eligible projects in the tax increment finance zone. Terrell is contributing 75 percent of the taxes captured while the county has pledged 50 percent. The tax increment finance money is used exclusively for public improvements.
The president of the Tax Increment Finance Board of Directors, Don Thurmond, who also serves as deputy mayor pro tem on the Terrell City Council, was pleased to see the agreement come to fruition.
“This letter between Terrell and Kaufman County is an agreement to cooperate in development of the City and County by using the unique finance tool of the TIF,” Thurmond said.
The Terrell Tax Increment Finance Zone includes more than 4,000 acres that are currently being used to graze cattle. Plans call for 26 projects within the development zone that will net $158,500,000 over the 30-year term of the zone and developers are already expressing interest in applying for the funds.
Terrell City Manager Torry Edwards said the city’s planned tax increment financing reinvestment zone, is already attracting significant interest from commercial developers and realtors. In a special City Council meeting held this morning, Council unanimously passed the ordinance creating the Tax Increment Finance Zone No. 1 on second reading.
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5609829 wrote on Sep 23, 2008 10:01 PM:
" one thing that the leaders is forgetting that if they do not have a hospital in the area that can provide good health care to locals this just might be a bunch of hoopla.
What should be done is that the city of Terrell leaders should do is put before the voter a creation of a Hospital taxing district. That is similar to the taxing authority used with FIREDEPARTMENTS AND CUMMINITY COLLAGES. the hospital will have a board apointed by the county commisioners and the city councel "
What should be done is that the city of Terrell leaders should do is put before the voter a creation of a Hospital taxing district. That is similar to the taxing authority used with FIREDEPARTMENTS AND CUMMINITY COLLAGES. the hospital will have a board apointed by the county commisioners and the city councel "
common sense wrote on Sep 24, 2008 11:25 AM:
" 5609829 one question.... Why would the citizens want to pay their taxes to a private hospital company when they already have to pay for their services? "
Terrell DP wrote on Sep 23, 2008 2:03 PM: