Olney City Council Approves TIRZ-2 Business Tax Zone

After nearly two years of debate and delay, the Olney City Council unanimously approved the creation of Tax Increment Reinvestment Zone No. 2 on Dec. 22 — just under the wire to capture new tax revenue that supporters said would give the long-sought zone a crucial early boost. The vote came at the council’s final meeting of 2025 and followed months — and in some cases years — of sometimes tortuous discussion over the merits, risks and boundaries of the proposed tax zone. By contrast, Monday’s meeting was notable for its brevity. Olney Economic Development Corporation Executive Director Tom Parker was present to answer questions about the zone’s footprint and how the tax increment funds could be used, but there was little discussion from council members before the unanimous vote.

The TIRZ, first proposed by the OEDC in early 2023, is designed to capture future increases in property tax revenue within its boundaries and reinvest those funds into infrastructure and development projects intended to spur private investment.

Over the past two years, council members repeatedly raised concerns about potential risks to the city’s general fund, the size of the zone and whether projected development would materialize. Those concerns slowed progress and led to multiple revisions of the proposal.

By December, however, timing had become decisive. Approval was required by Dec. 31 in order for the zone to capture tax increases resulting from Young County’s 2025 citywide property reappraisal — revenue that proponents said could help the TIRZ get off to a strong start TIRZ No. 2 encompasses approximately 1,275 acres within the city limits and Olney’s extraterritorial jurisdiction. The municipal airport and several other city-owned parcels were excluded from the final map.

The OEDC has said the zone is a critical tool for pursuing matching grants, low-interest loans and private development opportunities that would otherwise remain out of reach for a city Olney’s size.

Among the projects floated during earlier discussions were the rehabilitation of the abandoned former Olney Savings building on the eastern edge of town and redevelopment of the long-vacant Hamilton Hotel into a modern lodging facility to serve recreational and business travelers. Other potential uses of TIRZ funding include street repairs and the creation of a water recapture system aimed at alleviating chronic flooding along Main Street.

With the final vote, the city can now move forward with appointing a TIRZ board and prioritizing projects.