Community Impact reports that in an agreement regarding a new 1,465-acre residential and commercial development in the Magnolia area, Montgomery County commissioners have okayed the county’s first tax increment reinvestment zone, or TIRZ.
The idea of TIRZ is to reimburse a developer through an agreement between a governmental entity and a developer–in the Magnolia development case, Johnson Development Corporation. The reimbursement of the developer would be for the construction of a road along with infrastructure improvements, during a period of time, from collected property tax revenue.
In the TIRZ guidelines published by the Comptroller of Public Accounts it says, “As development or redevelopment occurs, the appraised value of the property in the zone should increase.”
Within their jurisdictions, the cities of Huntsville, Conroe, Oak Ridge North and Willis have had TIRZ agreement developments.
The new Kresston development, according to Vice President and General Manager at Johnson Development Stephen Barrera, will offer a combination of single and multi-family homesites, along with commercial areas.
Breaking Kresston down, it will contain 21.7 acres of multi-family housing, 3,500 homesites, 120.9 acres of commercial development and one school site in the Magnolia ISD.
The TIRZ agreement will take effect in 2025 and run to 2055 unless it’s terminated.
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