HOUSTON TIRZSARE $1BILLION IN DEBT

By: Bill King As of last year, Houston’s tax increment reinvest- ment zones (TIRZs) had just under $1 billion in combined liabilities. The lion’s share of these liabilities is slightly over $80 million in bonds secured by the TIRZs, pledging their future property tax receipts. The balance of the liabilities is a potpourri of obligations, running from trade account payables to agreements to reimburse developers for improvements they have constructed. To put the $800 million of bonds issued by the TIRZs in some perspective, as of last year, the City of Houston only had about twice that amount ($1.723 billion) outstanding for all of its public improvement bonds. In other words, the TIRZs have issued a third of the total amount of bonds the City has borrowed for public infrastructure work. Just three of the TIRZs (Uptown, Midtown, and Main Street) account for over half the TIRZ bond debt. The recent research from Baker Institute shows that the median income in these three TIRZs was at least 50% higher than the City’s median income. The Uptown TIRZ alone accounts for 36% ($296 million) of the total bond debt. Included in that $296 million is $102 million issued by the Uptown...