Council approves creation of 2 tax increment reinvestment zones in Northwest El Paso
El Paso City Council Tuesday approved the creation of two Tax Increment Reinvestment Zones (TIRZ) with the hope of spurring development in Northwest El Paso.
The vote was 5-4 with city representatives Peter Svarzbein, Alexsandra Annello, Cissy Lizarraga and Henry Rivera voting against. Annello said she felt there was not enough public input during the process.
The City said TIRZ is a state program that allows municipalities to use tax revenue generated from new improvements to finance public improvements within the boundaries of the zone.
Tuesday’s vote allows for the expansion of TIRZ 10A, which includes 3,900 just north of Transmountain, about a block south of Helen of Troy Drive, as far West as I-10 and as far East as Hermoso Del Sol Dr. This zone already includes some development.
Council also voted to create TIRZ 12, which is adjacent to zone 10. TIRZ 12 includes about 1,000 acres of complete open space. The western boundary is Land Rush Street, the southern boundary is Cabana Del Sol Drive, the northern boundary is just north of Transmountain Road and the eastern boundary is adjacent to the Franklin Mountains State Park. City officials said a lot of zone 12 will remain open space, but that did not appease dozens of residents who showed up to raise concerns about existing hiking trails.
The City also created TIRZ 11 in Northeast El Paso, which will allow for the revitalization of the Cohen Stadium site.
Jessica Herrera, the City of El Paso’s economic development director, told ABC-7 tax revenue that would be collected in the TIRZ helps address things like sidewalk improvements and storm water drainage. This makes the land more attractive to retailers and developers.
“The development of these TIRZs will help offset tax burden felt by many homeowners in the area. These zones will allow us to finance public improvements that will attract commercial development increasing our sales tax revenue and providing much needed relief to our residential taxpayers,” said Jessica Herrera.
33 percent of the tax funds generated within the TIRZ will stay within that area, while 66 percent would go back into the City’s general fund. The split is what gained the support of several city representatives in Council.
Dozens are here at today’s city council meeting to speak out against a Tax Increment Reinvestment Zone that could be established in West El Paso. Residents fear it could lead to hiking trails being lost. @abc7breaking https://t.co/wg87R680gU pic.twitter.com/4beLaqHHvt
— Mauricio Casillas (@MauricioABC7) May 29, 2018
Rick Bonart, who often frequents the Lost Dog Trail located within the proposed zone, told ABC-7 he is concerned about development taking away land used by hikers. “I believe it has a higher dollar value to the community as a recreational area than it ever would as a tax vehicle,” Bonart said.
“We’ve organized a series community meetings to give the public more opportunities to learn about this economic development tool and the benefits it has,” said Elizabeth Triggs, City of El Paso Assistant Director of Economic and International Development Department.
The community meetings are set for:
· May 31 at 6 p.m. at the Westside Regional Command Center, 4801 Osbourne.
· June 6 at 6 p.m. at the Northeast Regional Command Center, 9600 Dyer St.
· June 7 at 6 p.m. at the Pebble Hills Regional Command Center, 10780 Pebble Hills
The Office of City Rep. Peter Svarzbein of District 1 is hosting separate community meetings on the TIRZ projects for West El Paso. The final meeting that series is set for 7 p.m. on May 30 at Eloise Restaurant, 225 Shadow Mountain.
