Controversial tax reinvestment projects, funding approved

City leaders approved a controversial plan to develop part of Northwest El Paso’s desert landscape.

City council approved the creation of a Tax Increment Reinvestment Zone, or TIRZ, and on Tuesday, it approved the projects that will benefit from the funding. A TIRZ is a funding tool whereby the city sets aside property tax revenue collected in a designated area and reinvests it in it.

“These TIRZs allow for careful and thoughtful development,” said Jessica Herrera, City of El Paso Economic and International Development Director on a statement. “They support the preservation of open space, arroyos and trails and encourage private investment, such as destination retail and entertainment, which grows the tax base, increases sales tax revenues and provides relief to residential property owners.”

Opponents packed the council chambers and the majority spoke against the development of land which includes hiking trails.

One of those trails is the now famous “Lost Dog” trail. Opponents say they want to preserve the natural landscape and don’t want development of any kind.

Those opponents even gathered more than 2,000 signatures to force council to reconsider the issue. The municipal clerk is reviewing the signatures and if she validates that they came from registered voters, the item will be placed on the agenda. Council can then discuss the issue again or take no action.

On Tuesday, city representatives went ahead and put the matter to a vote, approving the TIRZ financing plan 5 to 2. Representatives Peter Svarzbein and Alexsandra Annello voted against; Rep. Cassandra Hernandez was not present.

“They have their own agendas. And it’s obviously not to listen to the community.” said Sharon Bonart, chairwoman of the city’s Open Space Advisory Committee.

TIRZ 12 is near the Franklin Mountain State Park. One-third of the property tax revenues will be reinvested into the area with the other thirds going to the general fund.

TIRZ 10, also in northwest El Paso, and TIRZ 11, around the Cohen Stadium area, will see 100 percent of the tax revenues reinvested into the zones.

Over their life span, the three TIRZs combined are projected to generate a net benefit of more than $2 billion for all local taxing entities combined, the city said.