District E to pursue creation of TIRZ

Councilman Dave Martin looking at possibility after residents raise concerns

In response to Clear Lake residents’ concern about what they see as unfair local distribution of the city of Houston’s tax dollars, District E Councilman Dave Martin is exploring the possibility of establishing a tax increment reinvestment zone in the area.

He said plans are in the preliminary stages but suggested the idea will be brought to City Council by the first quarter of 2016.

“With the growing population, need for new development in undeveloped areas and the recent announcement that Ellington Airport has been designated as an official spaceport, our council office has been in discussions with the city’s Economic Development Office to establish a TIRZ in the Clear Lake area,” Martin said.

After Clear Lake residents complained that the community gets little support from Houston, Martin’s office began to pursue a TIRZ in the area as a potential solution.

Martin, whose office has also been involved with the Lake Houston TIRZ in Kingwood that was established in 1996, speaks to the positive impact a TIRZ can have on a community.

“A TIRZ helps to finance the cost of redevelopment, and taxes attributable to new improvements are set aside in a fund to finance public improvements within the boundary of that particular TIRZ,” he said.

In a TIRZ, property tax revenues within the zone’s boundaries are frozen at a base level. The amount collected above that level, known as the increment, is invested back into the zone in hopes of spurring private development. Though originally created to reduce blight, the city also has used the zones to speed redevelopment.

Gwen Tillotson, deputy director of Houston’s Office for Economic Development, said she hasn’t had any discussions about a TIRZ in Clear Lake. She added that there are no new TIRZ plans on the 2015 agenda, so it would be a matter for the next administration to handle.

Next steps would include drawing geographic boundaries for the proposed zone and drafting a preliminary financing plan, Tillotson said.

When comparing the TIRZ in Kingwood with a potential one in Clear Lake, Martin suggested the similarities would be in the impact to the local economy but added the amount of incremental revenue produced varies by zone.

“Our goal is to mirror what has been successful in the northern part of the council district and establish a zone where constituents in the south can see a similar benefit,” he said.

Residents in Clear Lake who are aware of the effort seem satisfied but are interested to see how it moves forward.

Dennis Thornton, the treasurer of the Middlebrook Homeowners Association and an active member of the Clear Lake Area Republicans, said, “I’m in favor, as long as it is not controlled by business interests.”