City staff outlines multiple TIRZ proposals including annexations and a life-extension request; council raises transparency and equity concerns

Senior Staff Analyst Andrew Busker presented a package of proposed amendments and boundary changes to multiple Tax Increment Reinvestment Zones (TIRZ/TIRS). He said the proposals include project-plan alignment to a new interlocal agreement with Harris County (TIRZ 3), annexations to capture redevelopment value (TIRZ 8: Almeda Mall and a business-park site), an annexation intended to support affordable housing (TIRZ 11) and a requested 22-year life extension for TIRZ 13 to finance major capital projects.

Busker told the committee the city—s TIRZ financial policies are rooted in Chapter 311 of the Texas Tax Code and Section N of the city's financial policies; he said a city of Houston's size must keep total taxable value inside TIRZs below 25% of citywide taxable value and that, based on 2024 certified values, Houston was at about 22.875% of the 25% cap prior to the proposed annexations (01:00:13). He said the annexations under consideration would raise that figure only slightly and leave room for future zones.

For the requested TIRZ 13 life extension Busker said that area has experienced recent growth after years of slow increment, that a third of TIRZ 13's increment flows to the city's affordable-housing fund under the original petition structure, and that the extension would allow the zone to issue or use increment to fund large-scale infrastructure projects that staff and the zone identified in 2023. On annexations Busker described one request (Seamus Drive) with currently low taxable value where annexation is intended to allow a coordinated road reconstruction and intersection-safety project.

Councilmembers probed termination criteria for TIRZs and transparency. Busker described three off-ramps for terminating a TIRZ: (1) pre-termination to allow repayment of outstanding debt without taking on new projects; (2) termination once debt is paid and the project plan is complete; and (3) termination of underperforming zones. Councilmember Meyers asked how many TIRZs have been terminated; staff said one (TIRZ 4) had completed its work and been terminated. Meyers and other members urged staff to adopt uniform transparency policies so TIRZ board materials are publicly available before meetings.

Ending: Staff said the first group of annexation proposals (TIRZ 8, 11 and 23) would be presented to council by the end of the year and that additional TIRZ amendments would follow in early 2026; committee members requested clearer public posting of TIRZ documents and further coordination with Harris County where appropriate.