The city of Dublin is pursuing research on a Tax Increment Reinvestment Zone (TIRZ) in conjunction with a water line improvement project for the Emerald Ridge subdivision.
At the Monday, Aug. 10 Dublin City Council meeting, Director of Public Safety Cameron Ray gave preliminary information to the city council on the possibility of a TIRZ being formed as a potential funding mechanism. Developer Brad Allen is developing Emerald Ridge, a subdivision on Hwy. 377 north of Shamrock Apartments and continuing east to Norton. In phase I of the project, 43-homes are expected along with seven commercial lots.
Allen has asked for the city’s help with an estimated $512,000 project for water line infrastructure. With the requirement for closed loop systems and pipes to be in place before roadways are laid, water lines would need to be installed before other work can be completed. Dublin’s Economic Development Corporation has pledged $250,000 over the course of four years to the city to aid in the project, leaving $262,000 for the city to fund.
“We are not able to cut that check,” Ray said.
However, a TIRZ, a commonly used funding mechanism for cities, could be used to reimburse Allen for the project.
How does a TIRZ work? It sets the base level (what the property is worth now), then takes future property taxes raised on the land and allows them to be used on specific designated infrastructure projects.
In this instance, the TIRZ tax amounts could go to Allen until the water line improvements are paid back, over a maximum of 10 years.
“The consultants think it would only take 3-4 years,” Ray explained.
After Allen is paid back, the taxes would then go to the city for projects in the subdivision, such as road repairs.
“As we’ve researched this a little bit, there are questions people have... is this a give-away to the developer? Is there a risk to the city? And the answer to both of those questions is no,” Councilmember Bo Kabala said. “It’s not a give-a-way of any kind because the real estate developer that is coming in continues to pay property taxes and there is zero risk putting this in place other than paying the lawyer to draft up the paperwork.”
Ray explained a consulting firm, Pettit & Ayala is available to help the city with the entire process including legal agreements and public hearings.
“This opens the door for growth in the city,” Ray said. Ray also added that the TIRZ does not affect the tax rate, and it makes it easier for both the city and land developer to borrow money, if needed.
“It’s my understanding that once the TIRZ is in place if Mr. Allen wants to go out and get a loan to pay for this, it makes it easier,” Ray said.
The city is also discussing the possibility of some in-kind aid (which could be offered to Allen and other developers in the future) such as waiving inspection fees and building permit fees.
“I feel like we can work on that since it’s advantageous,” Ray said. “I feel like this is something we would do for any developer that would come in and increase our tax base. I think when it’s all said and done, and my numbers could be off, it’s $13.8 million appraised value for the total development.”
Further discussion and a closed executive session, where Allen was invited in, was held.
After reconvening in open session, council approved moving forward with research to form a TIRZ in a partnership with Emerald Ridge with the help of the consulting firm Pettit & Ayala. Kabala abstained from the motion due to a conflict of interest.
Both Kabala and Ray were also appointed to act as council liaisons to research the TIRZ in a separate motion, with Kabala once again abstaining.
Also during the meeting, council unanimously approved the issuance of $300,000 of certificates of obligations in an ongoing process. The money was used for swimming pool improvement, water line relocation and street improvements.
According to Director of Infrastructure Cory James, about $150,000 is left for street improvements and the city is hoping for a possible $250,000 from TxDOT in order to repair city streets damaged from the Patrick Street detours.
The city is already moving ahead with repairing the 100 block of College and the 100 block of Erin. Grafton Street will also be repaired after the completion of Patrick Street.
Council also unanimously funded an additional parttime police officer for the city and approved the memorandum of understanding between the city and DISD for the school resource officer program.
“Chief Ray and all of our SROs are part of our team. They are truly amazing,” DISD Superintendent Melissa Summers said at the meeting.
The part-time officer will be a floater between the schools and administrative help for the police department as they move toward applying for the Texas Best Practices program.
The salary will be split between the school district and the city with each entity paying $10,000 for the year.
In other business, the council unanimously approved: ■ the Fiscal Year 2027 city holiday schedule
■ a proclamation for Constitution Week Sept. 17-23 with the Daughters of the American Revolution
■ heard an introduction from County Waste Service from Director of Business Development David Ratliff
■ an RFP and RFQ for Texas Community Development Grant Program for wastewater improvements During public comments, both Carmen Andersen and Lori Beggs offered comments about the Dublin EDC as budget season approaches. Both ladies said they were in no way criticizing the EDC, but rather wanted to build upon the momentum the EDC currently has.
School board President Bob Cervetto also encouraged council during public comments about moving forward with aiding the Emerald Ridge subdivision.