Pottsboro is finalizing a Tax Increment Reinvestment Zone city and county officials hope will spark commercial development in the city.
The Grayson County Commissioners received the fully executed Pottsboro TIRZ No. 1 on Tuesday after approving the county’s participation earlier this month. Precinct 4 Commissioner Bart Lawrence was absent from Tuesday’s meeting and had abstained from the vote on the county’s participation in the TIRZ because he owns land in the zone.
“We wanted to expand our services to the west,” Pottsboro City Manager Kevin Farley said earlier this month of reasons for creating the around 470 acre zone that will be on both sides of FM 120 and State Highway 289 within the city limits.
County officials agreed to contribute 50 percent of its maintenance and operations ad valorem tax increment that comes from increased taxable value of existing and new development in that zone. Pottsboro will be contributing 75 percent of its M&O ad valorem tax increment.
The TIRZ area is designed to promote development the city believes would not occur exclusively through private investment in the foreseeable future. The TIRZ areas will generate funds for the city’s Tax Increment Financing Fund, which the city will use to fund public works, improvements, programs and projects benefiting the zone.
Farley said the city also wanted to examine the potential development of commercial and retail development in what they call their “gold triangle” area, which is the area between State Highway 289 and FM 120 and Spur 316. The city thinks the large tracts of land in that area that could lure in commercial retailers.
Farley said the city expects the zone to create $12.5 million in revenue over the next 20 years.
“We believe the current taxing value within the zone is about $11.6 million,” Farley said. “We believe by the end of the 20 year life of the zone itself, we’re looking at somewhere in the neighborhood of having a value of $211 million.”
County Judge Bill Magers said he believes TIRZ and TIF zones are great tools for local governments to use.
“It doesn’t cost the taxpayers dollars, you just simply give up a little bit smaller increment — opportunity cost for a lack of a better term,” Magers said earlier this month. “We’ve done quite a few of these.”
Commissioners approved Grayson’s participation in Sherman TIRZ No. 7 last month and Sherman TIRZ No. 5 and Sherman TIRZ No. 6 in July. The county agreed to participate in Denison TIRZ No. 3 in December of last year. Under each of those agreements, the county will contribute 75 percent of its future increased tax revenue on the reinvestment zone to the TIRZ funds.
“The county’s going to have a little bit tighter policy on what we’re doing moving forward,” Magers said of participation in future TIRZ areas in the county. “We’re going to take a hard look at this in the first quarter of next year. These are accelerating and we’re going to put a policy together to address that.”
In addition to accepting the TIRZ documents into their records, county commissioners also approved a preliminary plat of Woods of Fossil Ridge. Grayson County Engineer Clay Barnett said the 20-acre tract of land is on Highport Road near its intersection with Robin Lane. He said the proposed plat meets all of the county’s requirements for subdivision regulation on preliminary plats.
Commissioners also approved a list of vehicles and equipment to be marked as surplus for sale at auction. The list included a Mack truck with dump body from Precinct 1 and 2000 Dodge Durango from the Grayson County Airport Fire Department along with a 1995 Ford F-150 with 124,875 miles on it.
Herald Democrat Managing Editor William C. Wadsack contributed to this report.