Editor’s note: This story has been updated to reflect Commissioners Court’s vote to create the reinvestment zone.
Harris County Commissioners Court approved a new tax increment reinvestment zone in Precinct 1 Tuesday in hopes it will help bring more businesses, improved infrastructure and affordable housing to the area.
The investment zone will cover 37 square miles in northeast Harris County near Beltway 8 and Lake Houston Parkway.
Commissioners voted unanimously in favor of creating Tax Increment Reinvestment Zone 2 following a brief public hearing that drew no speakers. County Judge Lina Hidalgo was absent from the meeting.
Tax increment reinvestment zones, or TIRZes, freeze property tax revenue at an agreed-upon level inside the zone. The amount of tax revenue collected beyond that level, called the increment, is then funneled back into the zone to pay for improvements with the goal of attracting additional development and raising property values. They originally were created as a way to rejuvenate blighted areas, and later to aid in the development of affordable housing.
The general borders of the zone would be Beltway 8 on the north, Lake Houston and the San Jacinto River to the east, Greens Bayou on the west and Wallisville Road on the south.
The combined appraised value of taxable property in the zone was valued at more than $2.2 billion as of January 2024, according to the project plan. By 2056, when the investment zone would end, the county estimates that number could balloon to more than $7.3 billion.
The proposed plan details eight goals for the reinvestment zone that range from creating improved transportation infrastructure and options, an increase in trails, green spaces and recreational facilities and improved water and drainage.
All projects for the zone will be required to apply through Harris County’s Minority and Women Owned Business Enterprise program and follow its policies. Additionally, all procurement will be required to follow Harris County’s Living Wage initiative, which guarantees $15 an hour. Other working terms and conditions, such as training and health insurance, also must follow county policies.
For years, Harris County avoided participating in tax increment reinvestment zones because the once-Republican controlled court said they lacked transparency and would end up costing taxpayers more.
Democrats gained a majority on the court in 2018, and quietly began entering into agreements last year with the city of Houston on four existing zones. The agreements focused on revitalization of the Gulfton and Sharpstown neighborhoods and improvements and upkeep to Buffalo Bayou East which benefited Precincts 1, 2 and 4.
Tax increment reinvestment zones long have been a divisive practice with supporters saying the improvements and beautification projects help bring more development, while critics say they tend to benefit wealthier areas.
Houston has 28 TIRZes, tops in the state.
A recent Baker Institute study concluded Houston’s zones benefit more affluent areas far more than less affluent areas.
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