TIRZ Board to Consider Infrastructure Incentives for Marketplace Development

Jason Calder

The City of Baytown’s Tax Increment Reinvestment Zone (TIRZ) board will meet on Tuesday, August 12 to discuss a $15 million infrastructure incentive package designed to improve and enhance the current infrastructure plans for the San Jacinto Marketplace.

This proposal follows a separate 2022 economic development agreement approved by the City that offers up to $16 million in sales and use tax rebates to attract new businesses to the San Jacinto Marketplace. Previous site plans associated with that 2022 agreement, submitted by developer Fidelis Partners, LLC, included standard internal driveways, limited drainage facilities, and other utilities to support retail development at that site only.

However, City leadership has been working closely with the developer to include additional infrastructure improvements that not only support the current project but also prepare the area for future growth and expansion.

Under the proposed agreement, Fidelis would be reimbursed up to $15 million for the costs of these additional improvements requested by the City. There would be a cap of $22 million to allow for financing costs, calculated at a rate comparable to what the City would incur, through traditional bond financing, if it were to complete the work independently.

Among the most noticeable improvements are the construction of Lone Star Street and Independence Street, which would run to and through the development to improve traffic circulation. The plan also includes additional utility upgrades and beautification enhancements, requested by the City, to elevate the site’s overall quality, sustainability, and long-term appeal.

City Manager Jason Reynolds stated, “This type of agreement is common in development projects. It’s an incentive tool that ensures the project meets a higher standard and delivers long-term benefits for the community.”

He added, “These enhancements will promote further economic development growth in the surrounding area, which is a core goal of the TIRZ.”

Again, the TIRZ board is scheduled to discuss the proposed Reimbursement Agreement at its meeting next week.