By Anton Riecher
Medina County commissioners took preliminary steps on Nov. 18 to call a public hearing on the creation of a tax increment reinvestment zone (TIRZ) to facilitate development of “Project Cinco,” a $500 million data center to be located between Natalia and Lytle.
“If everything goes right it will be held during the last commissioners’ court meeting in December,” County Judge Keith Lutz said. “We will need to have a proposed agreement.”
The last scheduled commissioners’ court meeting for 2024 is Dec. 30.
A representative for county development boosters, Go Medina, informed the Natalia city council in April about “Project Cinco,” a 440-acre digital data center proposed to be built on Hwy 132 between Natalia and Lytle. “Project Cinco” is a preliminary code name intended to protect the identity of the developers.
Lutz said the project is in the hands of private developer who plans to build the center to the specifications of a prospective tenant.
“Right now we don’t know who the tenant will be,” Lutz said.
According to the office of the Texas Comptroller, a county creates a TIRZ if records all taxable value of property within the zone. That establishes a base year with the appraised value of property with the zone recorded as the base value.
As development of redevelopment occurs, the appraised value of the property in the zone should increase. The difference between the increased value of the property in the zone and the base value is capture appraised value. Taxes levied and collected on the base value remains with the participating taxing units.
The portion of the taxes collected on the captured appraised value, or tax increment, is deposited in a tax increment fund (TIF). Revenues in the TIF can only be used for improvement projects in the TIRZ.
“It just defines the area,” Lutz said. “If we give any partial tax abatement it identifies an area of economic development where we are able to do that.”
In other action, the commissioners voted to accept a maintenance bond for street and drainage improvement issued by the Hunters Ranch subdivision, unit 12, in precinct 2.
Commissioners also voted to submit a written opinion to the Texas Commission on Environmental Quality (TCEQ) regarding Redbird Ranch Water Control Improvement District No. 2 regarding the application for $7.1 million in tax bonds.
“We’ve previously done an issue and sold some of their bonds for their development,” Lutz said.
The proposed sale requires a “window of opportunity” for the public to comment if there are any objections to the sale. “The county has no objections to the sale,” Lutz said.
Commissioners voted to approve a resolution in support of motor fuel tax exemptions for county vehicles.
Whereas, Texas law provides a variety of exemptions from gasoline and diesel taxes for federal agencies, volunteer fire departments, non-profit ambulance services, electric cooperatives, and school districts, no such exemption is granted for county vehicles.
“We feel like we’re all partners and we shouldn’t have to be paying that,” Lutz said. An exemption for county vehicle would amount to $30,000 in annual savings.
Commissioners approved an interlocal agreement with Kendall County to house inmates at the Medina County Jail at a cost of $67.50 per person a day. Housing inmates from neighboring counties was part of the plan in approving the recent jail expansion program, Lutz said.
On the topic of emergency services districts, Abigail Beadle was approved to rejoin the ESD3 board of commissioners. Lutz said she expressed a desire to return to the board after stepping down earlier this year.
Commissioners approved a change to the ESD board member application with regard to a question asking if the applicant had ever been in arrears regarding taxes. The question now asks only if the applicant is currently in arrears.
Debra Graff took the oath of office as Medina County’s new county treasurer based on the outcome of the Nov. 5 election. In Medina County, new office holders take their position on the date of the election canvass.
Following a closed executive session to discuss a real estate purchase, commissioner voted to purchase .53 acres adjoining the county yard in Castroville at a cost of $135,000.
“It wasn’t cheap,” Lutz said