TIRZ 2 to Get County Blessing, New Board in February

Olney Economic Development Corporation Executive Director Tom Parker told the Olney City Council last week that he hopes to soon solidify Young County’s participation in the City’s newly created Tax Increment Reinvestment Zone 2 through an ordinance slated for February.

Mr. Parker told the Council at its Jan. 12 meeting that the County has provisionally agreed to forgo property tax revenue within the newly created zone—known as TIRZ 2—in order to encourage redevelopment in parts of Olney that have seen little private investment for decades.

“I met with the county commissioners this morning just to make sure where we were on terms with their involvement,” Mr. Parker said. “I’ve asked the OEDC’s attorney to begin drafting the documents for that formation.”

TIRZ 2 encompasses Main Street commercial properties along with a residential strip on the northeastern side of the City. Under Texas law, tax revenue generated by increases in property values within the zone is reinvested back into the area to fund infrastructure, housing and economic development projects.

Mr. Parker said the County views the arrangement as a long-term investment, anticipating substantially higher tax revenues in the future as new homes are built and business activity returns to areas that are currently underdeveloped or deteriorating.

During his remarks, Mr. Parker also asked the Council to begin considering who should be appointed to the TIRZ 2 board of directors, which will oversee how reinvested funds are spent. He proposed a governing structure that would include two representatives appointed by the City, two appointed by the County, two appointed by the Olney Economic Development Corporation, and one representative from the Olney Hamilton Hospital, should the hospital choose to participate in the zone.

Mr. Parker said ordinances establishing TIRZ 2 and its governing framework must be approved by both the City Council and the Commissioners Court. Depending on how quickly the legal documents are prepared, the City may need to call a special meeting to take action before forwarding the ordinances to the County for approval.

The goal, Mr. Parker said, is to have the framework in place by February so the TIRZ 2 board can begin meeting and developing plans for reinvestment projects.

“We’re moving that and trying to get it done so that by February we’re in a place to start having meetings and looking forward to what those plans can be,” Mr. Parker said.

Council members took no formal action on TIRZ 2 appointments at the Jan. 12 meeting but indicated they would revisit the issue once draft ordinances are ready for consideration.