Hays County approves agreement for sixth Kyle TIRZ

HAYS COUNTY  — At its March 12 meeting, the Hays County Commissioners Court approved an interlocal agreement for a sixth Tax Increment Investment Zone (TIRZ) in the city of Kyle.

This comes more than two months after another agreement, effective through Dec. 21, 2048, was approved for the city’s fifth TIRZ that will be approximately 100 acres of land located on the corner of IH-35 and Bebee Road.

The sixth TIRZ, which will be close to downtown Kyle, consists of approximately 229 acres of mixed-use, retail, multifamily, single-family, office and hotel spaces, according to Assistant Criminal District Attorney Tucker Furlow. Similar to that of the fifth TIRZ, for this agreement, the city of Kyle and Hays County will each contribute 50% of the ad valorem real property taxes collected and received by each entity on the Captured Appraised Value in the zone, Furlow explained, excluding the portion of real property taxes collected and received that are associated with road and bridge, maintenance and operations.

“The county TIRZ increment shall not fund the city of Kyle office building, which includes the debt service on any public securities issued to finance the city office building,” Furlow said. “The city will be responsible for the administration of the TIRZ fund and it shall not charge an administration fee against the county.”

County Judge Ruben Becerra provided a brief explanation of what a TIRZ is for the viewing public.

“It’s a footprint designated by the city of Kyle and the county of Hays to mark a perimeter, so that we could say that all future growth and development, as it gains more taxing capacity, will be reinvested in that space,” he said. “But we as a county said that we aren’t going to invest our portion of the money specifically for municipal endeavors, meaning municipal functions like maintenance of a municipal transaction or a [municipality]-specific building … This is our delicate balance, delicate dance, that we have taken strides in in order to support our municipality in their development and reinvestment that benefits us all.”

No project expenditures of county funds provided under the agreement shall be authorized without an affirmative vote of the TIRZ Board, with the county representatives present for the vote and with the county representatives unanimously agreeing with a proposed expenditure, Furlow explained.

The commissioners also approved commissioners Debbie Ingalsbe and Michelle Cohen to serve on the Board of Directors for the city of Kyle’s TIRZ 6 for a two-year term.

Buc-ee’s Tax Break

Following executive session, the court voted 4-0 — with commissioner Walt Smith absent — to authorize Judge Becerra to execute an economic development agreement for “Project Journey,” which is used as another name for the proposed Buc-ee’s in San Marcos.

The agreement was not provided in agenda documents, however, the commissioners voted to approve the document as presented in executive session.

Buc-ee’s is a Texas-based travel center that was established in 1982 with a commitment to providing a “clean, friendly and in-stock experience” for customers. Just a few miles from its location in New Braunfels, the company is planning a $50 million, 74,000-square-foot facility on southbound IH-35, just off Yarrington Road.

In a final reading on Tuesday, March 5, the San Marcos City Council approved a Chapter 380 Economic Development Incentive Agreement to provide incentives for the construction of the new Buc-ee’s. In the 5-1 vote, council member Alyssa Garza dissented, while council member Saul Gonzales was absent.

The city expects to collect $5.9 million in property taxes over the 15 years and projects Hays County will receive $2.8 million, while Hays CISD will receive $11.4 million. The city is projected to collect $3.2 million in net sales taxes. Under the agreement, the city will rebate 50% of the sales taxes generated at the site to the company for 15 years.

During the March 12 meeting, commissioner Lon Shell explained that the county’s agreement will require Buc-ee’s to create at least 175 full-time equivalent jobs in exchange for grant payments equaling 50% of the sales tax revenue derived from the project.

“If they weren’t to meet these FTE’s, then the grant payments would be reduced. I will remind folks that’s sales tax only. It does not include any rebates for property taxes and the developer also agrees to make a contribution to the Hays County Community Fund of $50,000,” Shell said.

To watch the full meeting, visit www.hayscountytx.com/commissioners-court/court-video.