The City of Robinson is in the process of creating a new economic development tool to attract more businesses.
Once the Tax Increment Reinvestment Zone is created, the property value of the real estate in that area is assessed and it becomes the base value tax entities receive for a set amount of years. When the value of the properties goes up, the additional taxes from that increase is set aside to a special fund.
Through a method called Tax Increment Financing, cities can use that money to fund improvements including sidewalks, lighting and removal of health hazards, in that zone to attract new development.
"It gives us development tools to be able to create infrastructure like utilities, streets and development incentives as far as abatement,” Robinson Mayor Bert Echterling said.
Waco has been using the TIF process for several years.
According to City Center Waco Director of Finance and Operations Jeffrey Vitarius, the TIF was pivotal for pioneering projects downtown Waco, such as the Waco Hippodrome.
"The early projects of the TIF or some of the projects of the TIF... started bringing activity to Austin Avenue, which kind of began the process of reactivating Waco's downtown or at least assisted in the process that was already going on,” Vitarius said.
Lula Jane’s owner Nancy Grayson recalls receiving $63,000 in TIF funds before she opened her business.
Her bakery and restaurant recently made Yelp’s top 100 list.
"We get people from everywhere and it's delightful,” Grayson said.
She said the money helped bring utilities to her property and fund the façade work for the building.
“East Waco at that time, that was before it was a popular place to be, it was a high risk to provide a new building,” Grayson said.
She said TIF was very important to help reduce that risk.
"We put a great deal of money into this building, putting more into it without the TIF help, means we are risking more of our money,” Grayson said.
In Robinson, the mayor anticipated the TRIZ to be beneficial for the community.
"Robinson is a bedroom-based community and our residents are burdened with the majority of costs for our city. If we attract more businesses, then we are able to reduce the amount of overall costs to our homeowners,” Echterling said.
The TRIZ, which will not raise taxes, and is expected to be in place this year.
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