Anna Rodriguez, a city staff member presenting for the Tax Increment Reinvestment Zone (TIRZ) No. 3 board, gave a fiscal year 2025 development update and summarized the zone's annual report before the board approved the report for referral to City Council.

Rodriguez said the zone’s tri‑party agreement commits 98% of TIRZ revenues to the Imperial Redevelopment District’s project plan, with the remaining 2% retained for administrative costs. "So today, I'm just gonna give you a little update of the activity in TIRZ 3," Rodriguez told the board while outlining revenues, captured values and planned projects. She said the board has provided roughly $10.3 million to the redevelopment district in earlier remarks and later cited that the zone has received approximately $10.7 million in tax increment since creation; staff presented the project plan as totaling about $200 million in planned improvements.

The presentation noted completed work (including the University Boulevard extension), rising assessed values in 2024 (city appraised value cited at $533 million, a year‑over‑year increase of about 9%), and a range of cultural and recreational activity in the zone. Rodriguez reported event programming at the heritage museum and the Fort Bend Children’s Discovery Center and gave attendance figures for Constellation Field, which she said had several stadium upgrades and continued to operate as the Sugar Land Space Cowboys’ home. Rodriguez also said Diamond Baseball Holdings has divested several minor‑league teams and that city council will be asked Dec. 16 to approve assignment of the stadium lease to a new owner; she said the stadium’s operations, the AAA affiliation with the Houston Astros and the stadium name are expected to remain unchanged.

Board members asked whether TIRZ revenues include sales tax or stadium revenue; staff and board members clarified that the TIRZ primarily captures property‑tax increment (the increment above base values) and generally does not capture sales‑tax increment except where the tri‑party or district rules specifically provide for it in a historic district. Rodriguez said FY25 revenue to the zone totaled $1.9 million (about $1.0 million from county incremental taxes, $925,000 from the city and roughly $6,200 in interest) and that FY25 expenditures were about $1.93 million; staff reported no bond indebtedness for the zone.

A board member asked whether the roughly $10 million per year in increment would be sufficient to meet the $200 million project plan; staff replied that the $200 million is an estimate tied to full build‑out and that a substantial portion of the commercial acreage in the district remains undeveloped, which limits current revenue generation and extends the timeline absent additional funding sources.

After discussion, the board voted by voice to approve two routine motions: approval of the prior meeting minutes and approval of a recommendation that the FY2025 annual report be forwarded to City Council and to the state comptroller and other taxing entities. Both motions were approved by voice vote with no recorded opposition. The annual report will proceed to City Council for final action and subsequent submission to the state comptroller and the affected taxing entities.

The board adjourned at approximately 4:19 p.m.