Plano Council Approves Tax Increment Reinvestment Zone for Texas Research Quarter

Progress continues to be made on finalizing a public-private partnership to facilitate development within the Texas Research Quarter at Planaccording to a news release BY NexPoint.

Plano City Council approved a design and financing plan for a tax-increment reinvestment area, which includes the proposed redevelopment of 200 acres at a life sciences campus called the Texas Research District, during August 27 meeting.

“We are committed to partnering with the community to build a dynamic ecosystem that will drive innovation, attract and grow top talent, support groundbreaking research, and accelerate the production and delivery of important treatments for patients.” in Texas and beyond,” Eric Danielson, managing director and head of real estate development at NexPoint, said in the press release.

The essence

A tax increment reinvestment zone allows a portion of property value gains, up to 100% of the increase in assessed value, to be contributed to a tax increment fund that pays for public improvements within a designated area.

According to city ​​documentsThe city will contribute 65% of assessed value gains to the reinvestment of the tax increment, while it plans to add a 50% contribution from Collin County and 30% from Plano ISD. The total cost for the projects, including administrative costs, is over $577.9 million.

The final payment on the tax increment reinvestment zone will be made by Jan. 31, 2050, according to city documents.

Some context

Council members first ADOPTED a tax increment reinvestment area for the redevelopment area in January. zoning to allow the development of a life sciences campus was approved last November.

The redevelopment will include space for manufacturing, research and development and residential spaces.

“The City of Plano is proud to partner with NexPoint in transforming this iconic site into the next great life sciences center in North Texas,” Doug McDonald, director of Economic Development with the City of Plano, said in the press release. As the life sciences industry continues to expand in the region, we are confident that the Texas Research District will emerge as a major hub, further cementing the metroplex's reputation as the 'Third Coast' for biotech research and manufacturing.

What's next?

NexPoint is working with Plano ISD and Collin County to contribute to the tax increment reinvestment area. According to the announcement, the agreements with both could end at the end of 2024.

Construction is also slated to begin later this year once PISD and Collin County solidify commitments to the tax increment reinvestment zone, said NexPoint Chief Communications Officer Lucy Bannon.