City Council Advances Tax Increment Revenue Zones

The Olney City Council took a series of steps on April 13 to move forward with its tax increment reinvestment zones, approving board appointments and advancing multiple agreements tied to the proposed Tower Extrusions development.

Mayor Rue Rogers described the effort as a complex but coordinated process, with multiple entities — including the city, Young County, and the Olney Hamilton Hospital District — working together to establish the zones and lay the groundwork for future development.

“There’s just so many moving parts… but we’re moving in the right direction,” Mayor Rogers said.

Council members began by appointing representatives to the two reinvestment zone boards, known as TIRZ 1 and TIRZ 2.

For TIRZ 2, the council unanimously approved the appointment of Councilmember Steven Nurre and Olney resident Roger Ricketts.

“I think typically we’re looking for two-year commitments… trying to get some continuity, get some projects up and going,” Mayor Rogers said.

For TIRZ 1, Mayor Pro Tem Chuck Stennett led the process after Mayor Rogers recused himself. Councilmember Ronnie Cowart was nominated and approved by a majority vote, despite casting the lone vote against his own appointment.

With those selections, Mayor Rogers said the boards are beginning to take shape.

“Our boards are beginning to be assembled to make progress,” he said.

Council members also approved first readings of ordinances establishing interlocal agreements with both Young County and the Olney Hamilton Hospital District for participation in TIRZ 1.

The agreements formalize how those entities will contribute to and participate in the reinvestment zone, which is designed to capture future tax growth and reinvest it into infrastructure and development.

City officials noted that the county has already voted to participate, with minor revisions to the agreement language.

“They’re participating in 100 percent, 75 percent, 50 percent throughout the terms,” David Earl, representing Tower Extrusions President Mark McClelland and his development group, Olney Development, which plans to invest roughly $6 million to accelerate new home construction through TIRZ-1.

The Olney Hamilton Hospital District also approved its agreement, which council members formally recognized during the meeting.

OHH board chairman Dale Lovett attended the meeting.

Both items passed unanimously on first reading and will return for final approval at a future meeting.

Council members also approved first readings of two key agreements tied to the proposed Tower Extrusions project within TIRZ 1.

The first establishes a development agreement outlining the responsibilities of both the city and the developer. Under the agreement, the developer commits to completing the project as planned, while the city agrees to reimburse certain qualifying expenses.

“This agreement is a framework in which the developer binds themselves to the progress of the project and the city binds themselves to assist in it,” Mr. Earl said A second ordinance addresses annexation, requiring the developer to bring all project properties into the city limits.

Officials said that step ensures the land will be subject to city regulations and taxation as development moves forward.

“Those properties will become incorporated in the city limits and become taxable y thbe city,” Mr. Earl said.

Both measures passed unanimously on first reading.

Mayor Rogers said additional actions are still needed, including second readings of the ordinances and finalization of remaining board appointments from other participating entities.

He emphasized that while the process is complex, the groundwork is being laid for long-term growth.

“I think both these TIRZ are going to be great for the city of Olney,” Mayor Rogers said.

“It’s going to be fun to be a part of.”