SHERMAN, TX - The city of Sherman is taking steps toward reimbursing a developer for infrastructure in one of the city's upcoming major developments. The city council voted this week to move forward with drafting two Tax Increment Reinvestment Zones for the 440-acre Heritage Ranch planned development.
The large mixed-use development was first announced in late 2020 with developers touting a mixture of commercial, residential and retail uses anchored by an arena-style venue along the U.S. Highway 82 corridor.
"Heritage Ranch would focus on a really important piece of Sherman real estate, with tons of frontage on both Highway 82 and FM 1417," Sherman Community and Support Services Manager Nate Strauch said in Dec. 2020. "This kind of mixed-use development is an increasingly popular way to build walkable communities within a given city, and adding an entertainment component to the mix has already proven highly successful in other Sherman and Sherman-adjacent projects."
HERITAGE RANCH MASTER PLANNED COMMUNITY
The city is proposing to create two TIRZ districts — located generally between North Travis and FM 1417 — with one supporting supporting the residential portion of the development and another for the commercial portion. This would represent the eighth and ninth TIRZ districts that the city has created to help finance and reimburse infrastructure investment.
Under the terms of a TIRZ, the city will set a base value for property within the district at the time of its creation, as the land within the district increases in value, a portion of the tax revenue above the base value will be set aside for improvements within the district. City officials previously have said a TIRZ can ensure that the funds are put to this purpose even through changes in the council.
For TIRZ no. 8 and no. 9, the city plans to dedicate 50 percent of the city's maintenance and operation rate above the initial base to reimbursing developers for the costs of infrastructure improvements. Developers are expected to ask Grayson County to provide the same percentage from county taxes, city officials said.
Since its initial announcement, the project spent much of 2021 and early 2022 working its way through the planning phase with various plans making their way through the planning and zoning commission. Details of the arena have yet to be made public.
"We are looking at a multi-purpose venue there that would be available for community events, trade shows and sporting and equestrian events," Developer Ryan Johnson said in 2020, describing it as the anchor for the development. "We are early on in the stages now and hope some time in the new year to share more information on that."
Featured in Yahoo.com / Lifestyle article originally appeared on Herald Democrat: Sherman proposes Heritage Ranch pay for its own improvements with TIRZ districts
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