City staff reviews three TIRZ/TERS zones and flags possible dissolutions to free funds for CIP projects

City staff walked council through the three tax-increment reinvestment zones (TERS/TIRZ 1, 2 and 3), their revenue sources (primarily property-tax increments), and a set of developer agreements that make up most expenditures. The city manager observed the city places nearly $10 million a year into the three zones and asked whether the benefit equals the cost, noting this is an active evaluation that could include dissolving one or more zones after paying outstanding obligations.

Staff said TIRZ 1 and 2 could be dissolved once liabilities are addressed, while TIRZ 3 involves a management district and additional stakeholder negotiations; staff committed to produce the developer-agreement detail and project lists that make up the contracted expenditures so council can assess whether to continue, repurpose or dissolve these funds. The discussion included specific projects funded by TIRZ 2 such as a $6.5 million water-treatment plant and other identified reimbursements.