Faced with record-setting growth throughout the county, the Kaufman County Commissioners’ Court today entered into a partnership with the City of Terrell that will help manage the ever-increasing demands new developments place on county services.
Through voluntary annexation by developers and the creation of three Tax Increment Reinvestment Zones (TIRZs) both the City and the County will be able to manage the growth in unincorporated areas by working with landowners to voluntarily annex their land into the City of Terrell.
“We are seeing dense, urban- type residential developments, outside of cities, but Texas counties are just not set up to manage these kinds of development,” said Kaufman County Judge Hal Richards. “To ensure quality development, the Commissioners’ Court agreed to enter into three separate Tax Increment Reinvestment Zones (TIRZs) in partnership with the City of Terrell. Texas Home Rule Cities are better able to manage growth and development.”
The new planned developments originally projected 10,000 new houses and 3,000 apartments. Under the terms of the agreement, the landowners have agreed to reduce the number of homes that would be built in those zones from 10,000 to 5,255 and increase the commercial developments.
“There are two parts to our growth problem - the number of new residents and their demands on services are only one part. The other is the need for jobs,” said Precinct 3 Commissioner Terry Barber. “We need more employment opportunities in Kaufman County. This partnership addresses that need in a big way.”
Barber said the three developments are expected to generate approximately 16,000 new jobs, replacing land formerly planned for densely packed houses and apartment buildings.
“That’s huge for Kaufman County,” Barber added. “Our people can live and work right here, at home. And contrary to what I have heard, developers are not getting their taxes waived or reduced. This just creates opportunities for the land developers to build a better public infrastructure, including the roads and utilities used by all of our citizens.”
Under a TIRZ structure, there is no tax reduction at all. Instead, a TIRZ assists with financing major infrastructure like roads, water, sewer, and drainage by placing tax revenues in special funds earmarked for that purpose. Upon completion, most of the infrastructure is dedicated back to the City. This also allows the city to build high-capacity regional roadways.
Under the TIRZ structure, developers must enter into a partnership with the city to in order to take advantage of the benefits. As a result, they agree to build according to city standards, build fewer houses, preserve hundreds of acres for active and nature and recreation, and build more job-creating businesses. For example, the developer’s original plan called for only about 60 acres for businesses, the new plan calls for more than 1,200 acres for commercial development.
“Bad things can happen if developers are not closely managed,” Commissioner Barber said, citing examples such as increased traffic problems, flooding, pollution, crime, rundown properties, poorly handled sewer treatment and overworked deputies.
“These new developments call for fewer residents and fewer cars, but more controls and more jobs,” Barber explained. “This should make a huge positive difference in Kaufman County’s future by bringing in millions of dollars in new revenue for the county, the city, Terrell Independent School District (ISD), and Trinity Valley Community College (TVCC). In turn, those dollars will enable us to bring improvements to roads, parks, schools, and more. “
Terrell Mayor Rick Carmona agreed saying that he appreciates the County’s willingness to partner with the city as they navigate the obstacles created by the unprecedented growth.
“We are very fortunate to have a Commissioners’ Court that understands the need to manage growth,” Carmona said. “The County participation will allow Terrell to voluntarily annex these large tracts and operate the Development Services and Police and Fire Operations, which will keep these developments safe and high quality for generations to come.” Carmona also thanked the Terrell Economic Development Corporation for their ongoing partnership and for contributing $10 million to build a 24-inch water main to service the TIRZ.
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