Friday, May 18, 2012

City to Create TIRZ to Aid MCA Improvements

The City is poised to create a Tax Increment Reinvestment Zone (TIRZ) around University Medical Center which may help spur development in the area that will become the Medical Center of the Americas (MCA). City Council will vote on an ordinance creating TIRZ #6 on its May 29, 2012 meeting, which would encompass around 67 non-contiguous acres owned in part by the City of El Paso, University Medical Center, Texas Tech University, and MCA Americas Realty Inc.

A TIRZ is created to capture additional tax collections per year in a defined area and dedicate the additional tax to capital/public works improvements within the zone. For example, if the tax at the beginning is $1M, and the tax after year one is $1.5M, the the TIRZ would receive $0.5M for the year.

According to the TIRZ documentation, "The proposed Medical Center of the Americas (MCA) Tax Increment Reinvestment Zone is intended to stimulate private investment in the El Paso MCA area and facilitate the creation of an integrated campus of facilities that will position  the MCA as the premier regional center of health delivery, education, and research. The full  implementation of the proposed Zone is expected to yield significant increases in tax revenues for all MCA area taxing authorities, providing substantial economic benefits and opportunities to the region."


The preliminary study indicates the TIRZ will be in place for 30 years and has identified three projects so far totaling $5.78 Million. In addition, the study identifies $176 Million in non-TIRZ projects within its boundaries. If approved, the City may immediately name a board of directors that would choose projects to bring to City Council for a final vote.


City Council Agenda item (PDF): http://www.elpasotexas.gov/muni_clerk/agenda/05-22-12/05221210A.pdf
MCA Master Plan Details: http://elpasodevnews.blogspot.com/p/master-plans.html

1 comment:

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