The City of Navasota is adding another tool to their economic toolbox, in the words of City Manager Jason Weeks.
He introduced for approval a contract with Hawes Hill & Associates for services in creation of a Tax Increment Investment Zone, otherwise known as a TIRZ.
At a meeting back in June, representative of Hawes Hill & Associates David Hawes explained what it entails.
“The purpose is strictly for infrastructure financing. Not for maintenance f something you have done, but financing. It is about public infrastructure, that then promoes economic development,” said Hawes.
Hawes noted it is not the same as a tax abatement, and it does not indicate an increase in taxes. The tool will be regulated by the city as well.
Weeks says this will be a good investment in the long term, but the city has to get their ducks in a row in the next few months.
“There is a financing document we have to put together, which will determine the area…we have to do public notices for hearings…all of that needs to be done prior to December 31st,” said Weeks “he contract is one price for every city, and will have [Hawes] come in, and take us through that process.”
If done with the paperwork by end of year, the property tax collected for 2023, above the base value of the land in the area identified as a TIRZ, will be placed in a separate City fund to be used for improvements such as roads, drainage, utilities and public use areas.
The area under consideration is agricultural property east of the highway.