Discussion, consideration and approval  to terminate the Interlocal Agreement between City of Donna, Hidalgo County, and the Tax Increment Reinvestment Zone Number One (1), City of Donna, Texas, pursuant to Section VII of the Interlocal Agreement previously approved on January 9, 2009. Ordinance authorizing the dissolution of Tax Increment Zone #1 was approved and passed by City of Donna on December 09, 2014.

The City of Donna passed a Resolution of Intent No 2006-03-02 on March 7, 2006, expressing the city’s intent to create a tax increment reinvestment zone to encourage the growth and development of new housing opportunities within the city limits. On August 8th, 2006, the city council approved the creation of the Tax Increment Reinvestment Zone No. 1, commonly known as the Red River Development Project through Ordinance No. PL-2006-07-10.

On November 12th, 2008, the Commissioners Court approved that Hidalgo County entered into an Interlocal Agreement with the City of Donna and Garden Valley Homes, LLC d/b/a Casa Linda Homes (Developer) pursuant to Sections 311.009 (9) and 311.010, Texas Tax Code.

On October 28, 2014, the City Council passed and approved Resolution 2014-23, expressing the city’s intent to dissolve the Tax Increment Reinvestment Zone - Donna No.1, commonly known as the Red River Development Project, due to total non-compliance of the terms indicated in the agreement by the developer, Grande Valley Homes, LLC d/b/a Casa Linda Homes. The developer also has entered into bankruptcy and no longer owns the project.

On December 09, 2014, the City Council passed and approved an ordinance to dissolve the Tax Increment Reinvestment Zone, Donna No. 1 – Red River because the Developer has not satisfied its obligations under the agreement and the project has not been completed to generate the intended benefits to the County and City.