In order to assist attract more businesses, better infrastructure, and affordable housing to the area, the Harris County Commissioners Court is considering whether to establish a new tax increment reinvestment zone in Precinct 1.
The 37 square mile investment zone would be located in northeast Harris County, close to Lake Houston Parkway and Beltway 8.
Property tax revenue within tax increment reinvestment zones, or TIRZes, is frozen at a certain amount. In order to encourage more development and increase property values, the increment—the amount of tax income collected beyond that threshold—is then reinvested in the zone to fund improvements. They were first established to revitalize abandoned neighborhoods and then to support the construction of inexpensive housing.
The zone’s general boundaries are Wallisville Road to the south, Greens Bayou to the west, Lake Houston and the San Jacinto River to the east, and Beltway 8 to the north.
According to the project plan, as of January 2024, the total appraised value of taxable property in the zone was over $2.2 billion. The county predicts the figure may soar to over $7.3 billion by 2056, when the investment zone would expire.
Eight objectives are outlined in the proposed plan for the reinvestment zone, including better water and drainage, more trails, green areas, and recreational facilities, as well as better transit alternatives and infrastructure.
Every project for the zone must apply via and abide by the regulations of Harris County’s Minority and Women Owned Business Enterprise program. All purchases will also have to adhere to Harris County’s Living Wage initiative, which ensures $15 per hour. Other terms and conditions of employment, like health insurance and training, must also adhere to county regulations.
The tax increment reinvestment zone will be discussed at Tuesday’s Commissioners Court meeting. There will also be a public hearing.
The formerly Republican-controlled court claimed that tax increment reinvestment zones lacked transparency and would ultimately increase taxpayer costs, thus Harris County resisted taking part in them for years.
Democrats discreetly started making arrangements with the city of Houston last year on four existing zones after gaining a majority on the court in 2018. Precincts 1, 2, and 4 benefited from the agreements, which concentrated on reviving the Gulfton and Sharpstown areas as well as enhancing and maintaining Buffalo Bayou East.
Tax increment reinvestment zones have long been a contentious practice; proponents claim that the beautification and renovation projects contribute to greater development, while opponents claim that they disproportionately favor affluent communities.
Houston leads the state with 28 TIRZes.
Houston’s zones benefit wealthier neighborhoods significantly more than less affluent areas, according to a new Baker Institute research.
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