Consultants forecast $60 million in FM 110 tax revenue
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by BRAD ROLLINS
Existing development along FM 110 could generate as much as $60.7 million in county property tax revenue over the next quarter century, consultants told the Hays County Commissioners Court this morning.
County officials hope to fund the 13¼-mile eastern loop by dedicating some or all of ad valorem tax collected from property owners along the parkway to paying the $48 million estimated construction cost.
Assuming no tax rate increases but a seven-percent increase in appraised values, a so-called Transportation Reinvestment Zone along FM 110 would capture $20 million to $60.7 million in county property taxes depending on how much land the zone encompasses, said Travis Jones of Austin-based public policy consulting firm TXP Inc. The firm was also commissioned to study how much property tax revenue the city of San Marcos could collect from a similar reinvestment zone along FM 110; that analysis is not completed yet.
Besides the 7 percent increase — in line with the the overall countywide compounded annual growth rate in appraisal values between 2001 and 2011 — the projections assume no major new commercial or residential development along FM 110.
In addition to the $48 million construction estimate for FM 110, right-of-way acquisition and engineering is expected to cost another $12 million. Interest payments could bring the total price tag to the $70-$75 million range, said transportation consultant Mike Weaver, who emphasized the interest calculation is a rough estimate.
FM 110 is part of a broader $123 million package of road improvements negotiated between Texas Department of Transportation officials and Hays County Commissioners Will Conley and Debbie Gonzales Ingalsbe. The Texas Transportation Commission is expect to formalize the deal at its April 25 meeting.
About 2,750 new homes are expected to be built by 2035 in eastern San Marcos in areas that would be accessed by FM 110, according to the Capital Area Metropolitan Planning Organization. The Texas Data Center expects Hays County‘s population to triple to 474,802 by 2050.
“To put that growth into context, that’s like adding another San Marcos, Kyle and Buda — plus a Waco. Plus a Round Rock. Plus an additional 13,000 people,” Travis Jones said.
Read more
Presentation on Hays County Transportation Reinvestment Zones:
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Posted by Brad Rollins
on 03/19/2013. Filed under Caldwell County, Featured, Hays County, In the mix, News, San Marcos, Texas, Top Hays County.
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16 Responses to Consultants forecast $60 million in FM 110 tax revenue
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Excellent. Let’s get it built. Brad, can you post the map that is in the background of the title graphic?
Here’s a link to a map:
http://smmercury.com/2012/11/20/map-proposed-fm-110/
This map based on the Hays County Transportation Plan shows a slightly different alignment where FM 110 crosses the San Marcos River.
http://smmercury.com/2013/01/14/interactive-hays-county-draft-plans-for-san-marcos-roads/
If it cost $48 mill to build plus $12 mill in ROW and engineering for a total of $60 mill (not inclu interest), then the County breaks even?
Only a break-even? I guess we better not build it then.
IF the county maintains a 7% AGR for the for next 25 years AND applies the largest possible TIRZ, we’re still looking at $10-15 million in interest. Still preferable to road bonds.
Lila’s break-even scenario assumes the city of San Marcos contributes nothing. And it doesn’t account for the other road projects across the county that would be moved up in TxDOT’s queue as a result of the larger deal.
Lots of rough estimates and and what ifs being tossed around. I guess that’s just a natural consequence of trying to plan ahead by 25 years.
If one subscribes to the “build it and they will come” theory then this project is a natural. It is the placement of infrastructure and the encouragement of growth away from the Edwards Aquifer on the west side of I-35. It will provide relief for the congested intersections of Hwy 80 and Hwy 123 at I-35. It will enhance access to SH 130 by getting vehicles onto Hwy 21 more easily. Loop 110 will provide an alternate route around San Marcos if an accident blocks I-35 and provides a much needed bridge across the San Marcos river on the east side.
I’m encouraged that there is some momentum to get it completed and I hope we can keep it up.
Griffin, I think one of the unknowns is that they don’t know the details yet about how the “loan” by TxDOT to Hays County will be structured i.e. they don’t know what the interest rate will be, etc. TRZs are relatively new so there isn’t a lot of precedent for how this arrangement is going to work. One of the pitfalls/benefits of being on the forefront of something is that rules evolve with the situation.
That’s a good point. Any idea on when the info about the Hays-TxDOT deal is going to be released? Also, is there any news on the Caldwell portion? It’s probably hoping for too much, but a TRZ for that section might also bring in more funding.
There is a list of all the existing TIRZs on the State Comptrollers website. More than 2 dozen of them. Sometimes you have to get outside your own bubble.
Lila, A TIRZ is not the same thing as a TRZ.
Guess the Comptroller did a bad typo then. But hey – she’s a Republican. So what can you expect? LOL
Check it out Brad. You ARE a reporter, are you not?
Aren’t they doing one in El Paso? And in multiple counties for I-69?
I noodled around on the comptroller’s web site and could find no examples of her mislabeling a TIRZ (Tax Increment Reinvestment Zone) as a TRZ (Transportation Reinvestment Zone) or vise versa. Lila, perhaps you could post a link to assist Brad in his research. I’m sure he’s eager to get outside his own bubble. LOL.