Quinlan TIRZ #1
Project Plan & Finance Plan
A Tax Increment Reinvestment Zone (TIRZ) is an economic development tool used by cities and counties to attract investment and promote growth in specific areas, often those that are underdeveloped or in need of revitalization. It works by capturing the additional tax revenue generated by development within the zone and reinvesting it into public improvements like infrastructure, utilities, and other projects that benefit the area. Here's a more detailed explanation:
​Purpose:
-
TIRZs aim to stimulate economic activity, attract businesses, increase property values, and improve the quality of life in designated areas.
-
How it works:
A TIRZ is established by a local government, and property taxes are assessed and collected differently within the zone.
-
Tax Increment Financing (TIF):
The increased property tax revenue generated by new development (the "tax increment") is set aside in a fund to be used for public improvements within the zone.
-
TIRZs typically have a set duration, will be 30 years, during which the incremental taxes are collected and used for the zone's development.
-
Benefits:
TIRZs can bring in new businesses, increase property values, and improve infrastructure in designated areas.
-
Examples:
Successful TIRZs have brought businesses to an area, provided infrastructure like drainage and roads, and increased commercial and residential development.