In September 2023, City Council created Tax Increment Reinvestment Zone (TIRZ) #1 for Navasota. A TIRZ is a financing tool enabled by the Texas Legislature that can be used to pay for public improvements to encourage development and/or redevelopment of an area and attract private investment. Cities may create a TIRZ where conditions exist that substantially impair an area’s sound growth and where development or redevelopment is not likely to occur but for public infrastructure enhancements financed by a TIRZ.
Upon creation of the Zone, the total appraised value of real property located within its boundaries is established for the year in which it was created. This is known as the base value. As development occurs in the Zone due to the provision of new infrastructure, the value of real property increases. This additional value above the base is known as the increment. It is set aside to finance infrastructure improvements within the Zone. Once all projects are completed, or after a defined period, the TIRZ is dissolved. During the life of the Zone, the city and other participating taxing jurisdictions collect tax revenue on the base value of the Zone. When the Zone is dissolved, the city and other participating taxing jurisdictions receive the benefit of the full increment value created by new development.
TIRZ No. 1 Final Project Plan and Financing Plan
City of Navasota TIRZ No. 1 Boundary Map