Midtown TIRZ Extension

At a glance

What: An ordinance to extend the Midtown Tax Increment Reinvestment Zone to 2060, fund $10 million each for the Botanical Garden Society, Brackenridge Park Conservancy and the Zoological Society, and buy the Institute of Texan Culture property at 801 E. Cesar E. Chavez Blvd. from the University of Texas System for up to $60 million.
Where it stands: Amended and approved September 10, 2026, 7-2 with two abstentions. The amendment directs staff to bring back a finance plan and updated extension ordinance so the zone can end earlier, covering current projects with buffers, housing programs and a possible housing bond.
Next: Staff to return with the finance plan, possibly at a B Session first; Mungia asked for cost-of-service and board composition review at the Planning and Community Development Committee.

Garcia summarized the plan approved by the Midtown TIRZ Board. Jones asked if the zone had to be extended to buy the property; Gorzell said without the $30 million for cultural partners the $60 million purchase could be funded within the existing term (to 2041). Elliott said financing raises each $10 million request to about $16.8 million with reserves and that the $60 million purchase could cost about $115 million over the term.
Garcia: the entities would likely seek bond funding instead if the extension failed; Walsh said bond decisions would depend on broader priorities. Gorzell said extending the zone does not affect 2027 bond capacity.

Seven speakers opposed the item (one supported the three nonprofits but wanted funds directed to specific resident purposes if the zone is extended). Eight speakers supported it, including the executive director of the Botanical Garden, a representative of the Zoo and leaders of real estate, chamber, Realtors and restaurant organizations.

Viagran moved to approve as presented; Alderete Gavito seconded.
Mungia moved to amend: staff to present a Midtown TIRZ finance plan and updated extension ordinance allowing financing of current projects with appropriate financial buffers so obligations are completed and the zone can end earlier, adding housing programs and a potential housing bond; Kaur's friendly amendment (emergency housing programs, rental rehab, housing bond options) was seconded by Castillo and accepted. The minutes' final version of the motion reads that the zone 'can end in 2060'; an earlier reading said 'before 2060'. Walsh asked whether it included the Jones Avenue Municipal Management District project; Mungia said each project plan would need its own Council approval. Meza Gonzalez seconded; amendment carried 10-1 (No: Jones).
Main motion as amended: Viagran moved, Alderete Gavito seconded. Aye: Kaur, Viagran, Mungia, Alderete Gavito, Meza Gonzalez, Spears, Whyte. No: Jones, McKee-Rodriguez. Abstain: Castillo, Galvan.
Jones raised equity and historic segregation concerns; McKee-Rodriguez opposed adding the Jones development prematurely; Galvan noted inequities for districts without a TIRZ; Spears asked for a cost-of-service review across TIRZ, which Walsh said could be done in FY 2027.

Mungia's motion first read 'before 2060' and was revised after discussion; Jones noted it would add the Jones Avenue project not yet approved by the Midtown TIRZ Board. Kaur and Whyte supported the amendment. Jones declined McKee-Rodriguez's request to take the Inner City and Mission Drive In items first. Walsh suggested a B Session to give direction before the finance plan goes to the TIRZ Board. The meeting recessed from 2:44 to 3:02 p.m. after the vote. See Inner City TIRZ Extension and Mission Drive In TIRZ Extension for the companion items.

Jones again suggested reducing participation rates in city-initiated TIRZ funds to help the General Fund; no consensus.

Jones suggested ending TIRZ early or changing participation rates; Castillo supported using Midtown and Inner City TIRZ for budget items.

Public hearing, amendment and approval as amended (7-2-2).