City Council to Address TIRZ Nonprofit Access

San Angelo City Council will entertain the following agenda item in next week's meeting:

Consideration of amendments to the Tax Increment Reinvestment Zone (TIRZ) incentive policy regarding non-profit organizations.

The background packet states:

At a recent meeting, the City Council asked staff to take an item to the TIRZ Board to discuss the option of amending the TIRZ Incentive Policy to eliminate the option of funding a project on a property of a non-profit organization.

This item was discussed by the TIRZ Board at their February 28th regular meeting. After some discussion, the Board voted to recommend keeping the policy as is and to continue to allow funding for a non-profit organization.

No member of City Council attended the February TIRZ meeting to share their concerns about nonprofit funding.  

At their February 28, 2023 meeting, the Tax Increment Reinvestment Zone Board voted 5-3 to NOT amend the current policy (i.e., to continue to allow funding for a non-profit organization in the North TIRZ). 

At their March 28, 2023 meeting, the Board voted 6-3 to amend the current policy to allow funding for non-profits in BOTH the North and South

Prior to the March vote expanding nonprofit funding to the South the TIRZ board approved funding for three projects, one from a nonprofit.   Those are not on City Council's agenda for next week.

Normally in a policy change staff submits draft wording for City Council to consider.  That is not the case with this item.  Under staff recommendation it simply states "direction from Council."

I will venture City Council eliminates nonprofit access to TIRZ funding in the North as it refuses to consider adding it to the South.  This could be at least the third recent TIRZ board decision that Council countermanded.  That would be a bitter pill for TIRZ board members to swallow.

Update 4-4-23:  City Council has a motion on the floor to deny non-profit funding in both the North and South TIRZ.  The Mayor attempted to limit public comment from TIRZ board member Tony Villareal.  Later in the discussion there was much interchange between citizens making public comment and Council members.

The motion to deny nonprofits in both TIRZ zones failed 4-3.  A motion was made to keep the current policy which allows nonprofit funding in the North and denies it in the South.  The Assistant City Attorney recommended a vote endorsing current policy so the minutes would make it clear the TIRZ board's recommendation to add nonprofits in the South had been denied by Council.

Update 4-13-23:   The TIRZ incentive for the nonprofit The Bridge on MLK is not on City Council's agenda for 4-18.  The other two projects approved in the March TIRZ board meeting are on Council's agenda.

Update 7-11-23:  The TIRZ board meets today.

Update 8-28-23:   The TIRZ board discussed City Council's removal of interest funds from the two South TIRZ projects.  Members sought information from staff as to why.  Member and former City Manager Stephen Brown stated the city counts on interest revenue for a number of other funds and did not understand why TIRZ is being treated differently.  Brown indicated his interest in restoring those funds to the two projects.