HARLINGEN — New development around the city is expected to help replenish property tax revenue to fund more improvement projects within three tax zones.
But city officials have not projected the speed in which the three tax increment financing reinvestment zones will recover funding.
Last month, officials drew a sum total of $1.96 million in property tax revenue from the three zones to buy land on which to build the $14.8 million convention center and an attached 150-room upscale hotel.
Tax increment reinvestment zones are public financing tools used to fund economic development projects in which properties’ assessed values are frozen based on the theory their values will increase. The increased property taxes collected make up the increment.
The convention center’s land purchase marked the first time officials dipped into the three zones to fund a project.
From Zone 1, which includes Valley International Airport, officials took $601,312.
Officials took $1 million from Zone 2, home of the city’s medical complex.
From Zone 3, which includes the city’s major shopping areas, officials took $367,162.
New development will spark growth within the three zones.
In Zone 1, officials are working to build the city’s aerotropolis along 480 acres.
“We’re talking to different companies,” said Marv Esterly, the airport’s director of aviation. “We’re talking with other companies on the airfield to see what their expansion plans are.”
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