The Abilene City Council has approved a second Tax Increment Reinvestment Zone, or TIRZ, that will help spruce up the Pine St. and Ambler Ave. corridors.
What this means is that taxes collected in that zone on future businesses will go into the TIRZ fund instead of the city's general fund.
That money will then be reinvested back into the area to promote further development.
The TIRZ will not impact tax revenue of existing properties within the zone.
"In the beginning, when the TIRZ is established, there is a base value that is established for that zone," said Abilene City Manager Larry Gilley. "So once you establish that base value, any new improvements that result in additional taxes, that incremental increase is the money that goes back into the reinvestment zone to pay for those infrastructure improvements."
According to the City Council agenda memo, there is a need for economic incentives in this area to attract development for long-term financial benefits.
These benefits include increased property tax base, increased sales and use tax, as well as more job opportunities.
This will be the second TIRZ for the city.
The first one is also located downtown, which has distributed more than $10.4 million to a wide range of projects in the area.
The City Council has also drafted a special events license policy that will go to a public hearing later this month.
This new policy will spell out the requirements needed for events to take place on city property.
Part of the policy will include a penalty for those who fail to get a special events license and it will also authorize the city to charge a fee for that license.
Such events include, but are not limited to, 5K runs and the National Day of Prayer.