Houston, do we have a TIRZ problem?

Tax Increment Reinvestment Zones (TIRZ) are special districts created by City Council to attract new investment to areas of the city. According to the City website, "TIRZs help finance the cost of redeveloping or encouraging infill development in an area that would otherwise not attract sufficient market development in a timely manner." Property taxes on new development are put into a separate fund to finance public improvements in the TIRZ zone. TIRZs are supposed to be created for one of three reasons: to address inner city deterioration, to develop new land in suburban fringe areas, or to address the decline of major activity centers.

Houston currently has 22 TIRZs. TIRZ #17 encompasses an area on either side of IH-10 West outside the loop that includes the Memorial City Mall. The history of this TIRZ which was created in 1999 is one of controversy, and the allegations about how the TIRZ has been run are numerous and troubling.

At the time TIRZ 17 was formed, opponents argued that the area did not meet the legal criteria, since the Memorial City area could not be termed "blighted" and was not in decline. It was believed by many that the value of the land was such that it would attract private development. But City Council decided to allow the TIRZ for the stated reason of promoting mobility and drainage improvements. TIRZ 17 is the only TIRZ which has just the City of Houston as a partner, meaning that only city taxes can be recaptured to provide improvements. Efforts have failed to get the Spring Branch ISD and Harris County to join the TIRZ.

In response to neighborhood pressure to improve drainage and prevent the flooding that was taking place in the Memorial City area, the TIRZ 17 board agreed to add drainage culverts under a section of Gessner that was being reconstructed with tax increment funds. But many residents of the area believe that the size of the culverts is too small to relieve the flooding, and that additional retention will be needed.

Proposed improvements in mobility have caused the greatest controversy. The planned widening of Bunker Hill from IH-10 to Long Point has created a major battle with neighborhoods along that road. Residents near Bunker Hill believe that the proposed widening would be very destructive of their quality of life. Many people believe that Bunker Hill was selected for widening over Witte Rd. in order to satisfy the needs of developers. There have been accusations that decisions were made in back room dealings in violation of the Texas Open Meetings Act. City officials are now reportedly looking for a compromise solution. Other proposed road improvements, such as the reconstruction of parts of Long Point Rd. and others, have created controversy as well.

Allegations of secret dealings have also arisen concerning efforts to bring Spring Branch ISD into the TIRZ. Requests for memos, notes, emails, etc., of officials involved have been filed under the Texas Open Records Act, but activists believe important information may have been withheld. They believe that the TIRZ 17 board has not been responsive to the concerns of area residents. Some have called for TIRZ funding to be reduced.

In a similar situation, 326 residents of the St. George Place TIRZ in the Galleria area were forced to sign a petition recently to prevent their TIRZ board from changing zoning rules to allow a townhome and patio home development in their midst. State law allowed the TIRZ district to adopt its own zoning rules, which City Council passed in 1993. It is the only TIRZ for which the City Council has approved zoning. Since the TIRZ was created in 1990 in the blighted Lamar Terrace subdivision area, the tax base has reportedly increased from $12 million to $160 million. Residents have vowed to pay closer attention to the actions of their TIRZ board.

It would seem that just creating a TIRZ does not ensure that the results will necessarily be what residents want. Having a TIRZ would seem to have the potential to speed needed improvements in an area, or to help facilitate development that most of the community may not want. As in any other area of government, citizen interest and involvement seems to be the key to making a TIRZ a responsive tool for positive change.

(Near Northwest Banner, January 5, 2007)