Tax Increment Reinvestment Zone
A Tax Increment Reinvestment Zone (TIRZ), is a city-designated specific geographic area in which a city chooses to utilize Tax Increment Financing to help finance the cost of public improvements needed for development or redevelopment of the area.
How It Works
The City designates the boundary of the TIRZ, appoints the board of directors of the TIRZ, and establishes a length of time for the existence of the TIRZ. Nassau Bay TIRZ 1 has the same boundary as the NASA Area Management District
. After creating the TIRZ, the City adopts a Project Plan and Reinvestment Zone Financing Plan which establishes the types and general locations of the proposed public improvements.
The City Council delegates to the Board of Directors the power to do all things necessary to implement the Project and Financing Plan. The Board, however, must seek City Council approval in order to issue bonds. Board members serve staggered two-year terms and must be residents of Nassau Bay.
Also, the TIRZ:
- Has clearly identified needs and focused solutions
- Has programs and development partners to fill the need
- Is a focused capital improvement program, paying for needed infrastructure in the Zone based on the likelihood of redevelopment
- Is a performance based public / private partnership that is long-term in nature
Nassau Bay TIRZ is structured as a public / private performance driven partnership. This means that the City and the TIRZ Board will seek private sector partners to pre-fund public improvements for specific projects which have a likelihood of significantly increasing real property taxable value.
These developers will only be repaid the cost of the public improvements once the increased taxable value is sufficient to generate reimbursement from incremental increases in tax revenue. The City will own the public improvements from the time of completion and inspection. The City will never be obligated to pay developers or bonds from any source other than the incremental increases in tax revenue generated in the TIRZ.
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