City Council approved the final TIRZ 2 amended project and financing plan in what economic development consultant David Pettit called the “Texas 2-Step” at council’s regular meeting Dec. 21.
Pettit explained the first step was council’s approval of amending the TIRZ 2 boundary Nov. 16.
The second step was last week’s final approval of expanding TIRZ boundaries, with the addition of 147 acres southwest of the TIRZ 2 boundary.
Nothing changed between the first and final approvals, Pettit pointed out.
TIRZ 2 includes Schulman’s MBG and the proposed Bold Fox housing development between Bay City and Van Vleck.
The additional acreage is projected for developing a drainage area throughout TIRZ 2 – with recreational features – that complements the long-term Bold Fox development.
That acreage was purchased by Arthur Milberger, a major stakeholder of TIRZ 2.
Prior to council’s meeting, the TIRZ 2 board recommended the final plan for expansion.
Pettit announced that all of the TIRZ 2 entities – Bay City, Matagorda County, the Hospital District and Port of Bay City Authority – all “lined up” behind the project.
“I am thrilled,” Mitch Thames told council in a public hearing on TIRZ 2 before the vote to amend the boundary.
“We’ve been working for 17 years to grow the community and to watch other counties use tools the legislature gives us,” added Thames, president of Bay City Chamber of Commerce and Agriculture.
TIRZ 2 is the first success in that process, he explained.
Referring to the Bold Fox subdivision, Thames noted, “With these houses we provide employees of companies with new homes, which will help our (existing) homes.
“This will be No. 1 to lower tax rates,” he added.
Council also approved the TIRZ 2 board’s reimbursement agreement with Bold Fox.
Bold Fox Managing Shareholder Alex Kamkar said plans call for a first-phase development of 200 houses and amenities.
The contract will allow Bold Fox to be reimbursed for project costs - public works and improvements within the zone - from the TIRZ 2 tax increment fund, once the work is complete.
Those improvements include roads, water, sewer, drainage and “all infrastructure improvements needed for single-family residential development,” the agreement reads.
Kamkar later told council that Bold Fox residents will buy city water.
Kamkar noted Bold Fox will help address the local housing market demands.
Bold Fox has been working on this project for the past 18 months, Kamkar said.
“We want to do our part,” he added.
Builders have already purchased 70 of the 200 home sites, Kamkar noted.
“They are committed to the city,” he said about the builders.
“Most important,” he stressed, is the fact that the Bold Fox development here is supported by investors and bankers “who saw the vision” of this project.
The next step is to seek city approval to annex the area, which is expected in February.
In other action, council:
- Approved a Public Improvement District for the Maddox Development.
Developer Jim Maddox proposes about 200 homes on nearly 50 acres near McCoy’s Building Supply.
Council hired Pettit’s economic development firm as consultants on the PID in early December.
“We’re going for the full tool box” in developing new housing projects, Pettit told council last week.
“This process shows how each proposed project will be accessed,” he added.
Maddox said he was excited about the process.
Referring to the Bold Fox development, Maddox said, “Hopefully between the two of us we’ll get enough housing.”
He praised the work of the city and others who worked on the PID.
- Approved storm sewer improvements for the Hamman Road drainage problems.
Total costs are $963,700 for improving the storm drainage for Holly Lane from Belegarde Drive to Hamman Road, Hamman Road from Holly Lane to the Apartment Complex, and Hamman Road between Chateaux Drive and Cottonwood Creek.
- Terminated an April 2019 mutual economic development agreement with Sal Holdings to develop a subdivision behind Tractor Supply.
In the termination, effective Dec. 21, Sal Holdings noted that it was unable to get approval from Matagorda County Drainage District No. 1 for the project, making the project infeasible.
Council also went through a list of projects for possible funding from the American Rescue Plan (ARP).
The city is projected to receive $4,344,926 in the ARP allocation, but GrantWorks administration costs of $225,000 will bring the available total for projects to $4,119,026, Finance Director Scotty Jones said.
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