The City of Lubbock received a petition from property owners requesting that the City establish a Tax Increment Financing District (TIF) for the proposed North Park Development area. The area covers approximately 332.8 acres within the City of Lubbock, generally bounded by Erskine Street to the north, North Winston Avenue to the east, West Loop 289 to the south, and Frankford Avenue to the west.
On September 24, 2024, the City Council approved a resolution finding that the Petitioners represented more than 50% of the appraised value of the property in the area, which satisfies the requirements of Section 311.005(a)(4) of the Tax Increment Financing Act. On October 8, 2024, the City Council held a public hearing allowing interested parties to speak in favor of or in opposition to the creation of the reinvestment zone, its boundaries, or the concept of tax increment financing, as required by the Act. The next step in the creation process is to approve the first reading of the Creation Ordinance.
The purpose of this TIF District is to facilitate development or redevelopment by financing the costs of public works, public improvements, programs, or other projects benefiting the zone, plus other costs incidental to those expenditures, all of which are costs that are authorized by the Act. The proposed improvements include development of a playa lake park, administrative expenses, and maintenance costs. The total costs of the public improvements, including administrative costs, and financing and interest expenses, are estimated to be $3,621,900. Based on the feasibility study, during the term of the zone, new development is estimated to generate approximately $48,077,342 in total new real property tax revenue for the City, and approximately $40,761,470 for the County. The estimated base appraised value for the Zone is $88,709,973 (as of January 1, 2024), and is estimated to increase to $610,581,201 upon expiration.
The Zone will be governed by an advisory board that will report directly to the City Council. The Board will consist of nine members, six of which will be appointed by the City Council, with one member being appointed by the Commissioners Court of Lubbock County, one seat being reserved for the state senator or their designee, and one seat being reserved for the state representative or their designee. The Board will be appointed within 60 days of final approval of the ordinance. The Zone will take effect immediately upon approval of the ordinance, and will terminate no later than December 31, 2054.
The ordinance includes a preliminary draft of the reinvestment zone financing plan. A final Project and Finance Plan will be reviewed by the Advisory Board once created, and will be brought back to the City Council for final approval. |
