County mulls tax zone to spur development, revenue
By DAVID LOWE Staff Writer

Lampasas County could reap property and sales tax gains by joining a tax zone designed to encourage development in Copperas Cove, officials from that city told the Lampasas County Commissioners Court Monday.

Copperas Cove is proposing a Tax Increment Reinvestment Zone that would use increased property tax revenues to reimburse developers for installing water, sewer and drainage infrastructure for a 372-acre development in Lampasas County that lies in the Copperas Cove city limits.

The Valley at Great Hills development project will feature 512 single-family homes, 20 acres of multi- family housing and 45 acres of retail stores along U.S. Highway 190 within the Copperas Cove city limits. The development could increase the taxable value of the Lampasas County land, currently listed at $1.25 million, to more than $140 million by the time the project finishes in 2014, said David Hawes, a representative for Hawes Hill Calderon LLP, which is working with Copperas Cove on the development.

The "increment," or increase in property values as a result of development, provides revenue for TIRZ creators to pay developers for their risk in extending infrastructure where, in the TIRZ board's determination, it would not exist "but for" the tax zone.

Copperas Cove is proposing devoting its entire "incremental" property tax revenue from the development to reimbursing the developer. The municipality is asking Lampasas County to contribute 50 percent of its incremental property tax revenue from The Valley at Great Hills.

Although entities give a portion of incremental taxes, if Lampasas County joins the TIRZ the county always will receive at least as much tax revenue as it earns from the undeveloped acreage in the base year, Hawes said. If the county joins the TIRZ in 2008, for example, each year until the tax zone expires Lampasas County will be allowed to keep the amount of taxes it collected in 2008.

TIRZ boards often set a 30-year expiration date, but some are able to reimburse the developer and terminate the TIRZ before then, said Hawes. Once the zone terminates, taxing entities keep all ad valorem taxes assessed on property within the development. Lampasas County would keep all sales taxes generated from retail sales in the development, as well.

Total revenue to Copperas Cove and Lampasas County could reach $1.5 million annually by 2014, Hawes said. He estimated infrastructure installation, which will include an off-site water tower capable of serving developments outside the TIRZ, could cost $2.1 million.

Precinct 1 Commissioner Robert Vincent said although the county would sacrifice some tax revenue initially, it could gain extra revenue once the development project finishes. School taxes assessed on homes in the development could help pay off debts from the bonds issued for the new Lampasas High School, he added.

Ad valorem taxes could generate $1.2 million annually for Lampasas Independent School District by 2014, Hawes estimated.

Paul Cook, mayor pro tem of the Kempner City Council, voiced his concern about the proposal. The development likely will "choke up traffic" on U.S. 190, as Copperas Cove already is experiencing traffic congestion on the highway, he said.

Lampasas County Judge Wayne Boultinghouse said he worries runoff from The Valley at Great Hills will flood surrounding areas. Low-lying properties around the proposed development flooded this spring, the judge said, adding that runoff will increase once the undeveloped land is heavily paved.

"I just don't want all this extra impervious land to flood somebody down the hill," said Boultinghouse.

The Commissioners Court took no action Monday, although if Lampasas County joins the entity it could appoint two members to the TIRZ board, which likely would contain seven members. Hawes said he will give the court a preliminary financing plan within two weeks. State regulations require public hearings and a 60- day notice before creation of a TIRZ.

In other business, the court unanimously approved a contract for a joint election with the city of Kempner.

The agreement allows Kempner voters to cast their ballots for both Kempner City Council seats and Lampasas Independent School District trustees positions on May 10 at the Kempner Volunteer Fire Department training building.

Early voting will be April 28 to May 6 in the county elections administrator's office at 412 S. Live Oak St. in Lampasas.

Commissioners also unanimously OK'd a $1,920 proposal from McQuay Air Conditioning Service for repairs at the courthouse. The company will provide service for outdoor and indoor units, including in the district courtroom, the first-floor courtroom and in the county judge's office.

Commissioners tabled McQuay proposals for the company's Preventive Maintenance Program and Assured Full Maintenance Program.

In addition, Boultinghouse said several citizens have indicated interest in serving on a jail advisory committee. The judge reminded the public the committee will look only at the kind of jail to be constructed and will not reconsider the site for a new facility.

"The location's been pretty well set," said the county judge. "If you have any people who think we are going to redo this from square one, we are not."