Downtown manager urges commissioners to reverse cut to TIRZ funding, warns of stalled projects

Arlene Medrano, executive director of the Downtown Management District, urged the Nueces County Commissioners Court on Aug. 6 to reconsider its July 23 decision to reduce the countys contribution to the downtown tax increment reinvestment zone (TIRZ). Medrano said the agenda item lacked a fiscal-impact analysis, a timeline for implementation and did not account for how the cut would affect 31 development projects then underway. "Each of these agreements was made with the understanding that the county was a committed and reliable partner through 12/31/2028," she said. "Changing the county's contribution before the end of their agreementraises serious legal and ethical questions and threatens the Downtown Management District's ability to continue driving economic growth in the county seat." In remarks to the court, Medrano summarized the zones financial history: it has earned $19 million over 17 years and leveraged $21 million in incentives to produce $210 million in development, she said. She said 14 projects were under construction and some rely on future reimbursements under current agreements. "Pulling support now undermines a proven program with a strong record," she said. Medrano asked the court to "gather more information, consider the full impact, and reconsider your decision," and noted she would leave the meeting to speak at a sold-out Downtown Management District summit. Judge Scott and commissioners did not take immediate formal action on the request; the court proceeded with its agenda. The district also cited planned regional changes such as the new Harbor Bridge and demolition of the existing bridge when arguing the timing of the cut undermines downtown investment. Members of the public and the Downtown Management District emphasized the zones 10-to-1 return on investment and several ongoing development agreements that reference county partnership through the end of 2028. Court members did not adopt or reverse any funding action at the Aug. 6 meeting; Medrano requested the court seek more information before finalizing any change. Looking ahead, Medrano said the district would continue outreach to prospective downtown investors and asked commissioners to coordinate further review before any contribution changes are finalized.