Community First Coalition’s TIRZ Panel Discussion

Tax Increment Reinvestment Zones are a dubiously effective economic development tool. In El Paso, TIRZs are used to deprive the City’s General Fund for the benefit of developers.

In my opinion.

But don’t take my word for it.

Attend the Community First Coalition’s panel discussion to hear what other people say.

One comment

  1. A TAX INCREMENTAL REINVESTMENT ZONE (TIRZ) is a method local government can use to pay for improvements that will draw private investment to an area, typically a blighted area in need of upgrading. But not always in El Paso.

    HOW MANY TIRZ ARE THERE? There were 12 such TIRZ in El Paso according to the map on the City’s website. TIRZ 10 that was for the Great Wolf Resort was recently rescinded.

    WHY IS IT IMPORTANT? Your city may dedicate all or a portion of the tax revenue that is attributable to increased property values brought about by improvements within the TIRZ, i.e., the incremental tax revenue can stay in the TIRZ district and not increase the tax revenue to the city.

    RESCISSION. This the process whereby a TIRZ the City created can be taken back (rescinded) from the parties it was created for, e.g., Downtown El Paso (TIRZ 5). A rescission can be thwarted if there is bond debt on some project in the TIRZ and until the debt is paid off.

    DO I PAY MORE TAXES BECAUSE OF A TIRZ? Maybe, maybe not. It depends on the terms of the TIRZ. It appears that some of the TIRZs direct tax revenue goes back into the TIRZ, so that could result in the general tax base subsidizing the TIRZ. Also, the City has granted many tax rebates and subsidies to some TIRZ.

    IS THERE AN EXAMPLE? Yes, IN TIRZ 5 that is downtown El Paso, OVER $78 million in incentive, tax rebates, etc. have been granted to investors. That is money not available for the general City budget.

    CONFUSED? So am I. That’s why we’re doing this.

    WHEN and WHERE? A Panel Discussion Presented by COMMUNITY FIRST COALITION Saturday October 14th from 11:00 am to 1:pm at the Chamizal Community Center, 2119 Cypress Avenue.
    Note: this is not the Chamizal Center but is a city library branch located in Central with on-site parking available.

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