Maverick County Commissioners Court Express Interest in Entering into MOU with City of Eagle Pass on Tax Increment Reinvestment Zone
By: Ricardo E. Calderon, Eagle Pass Business Journal, Inc., Copyright 2024
The City of Eagle Pass, Texas made a presentation to the Maverick County Commissioners Court at their meeting held on Monday, March 11, 2024, via City Economic Development Department Director Arturo Marquez, concerning the establishment of a memorandum of understanding (MOU) between the City (TIRZ) and the County on establishing a Tax Reinvestment Increment Zone (for the 2,271 acres Empire Industrial Park, located at the intersection of Loop 480 and El Indio Highway (FM 1021).
The Eagle Pass City Council has already annexed the 2,271 acre real property at a meeting held in November 2023 and approved two of the necessary three readings of an Ordinance establishing the Tax Increment Reinvestment Zone of Empire Industrial Park, owned by Beyer Junfin, Sonia Valdez-Junfin, Dr. Sergio Zamora, and Linda Zamora.
At a City Council meeting held on March 5, 2024, the City Council approved to invite Maverick County Commissioners Court to enter into a memorandum of understanding regarding the establishment of the Tax Increment Reinvestment Zone for the Empire Industrial Park property. Before formally approving the Tax Increment Reinvestment Zone at a third reading, the City Council seeks to obtain an agreement from Maverick County about participating jointly in the Tax Increment Reinvestment Zone, which would require Maverick County to waive up to 80 percent of ad valorem taxes for a period of 50 years on the increased appraised value of the Empire Industrial Park-estimated to be in the millions of dollars over a 50 year period.
The initial development of the first phase of Empire Industrial Park is for 461 acres out of the 2,271 acres with an initial appraised value of a $1,101,588 at the start of the Tax Increment Reinvestment Zone and estimated to increase up to $540,662,406 when completed, thus increasing by an additional valorem appraised value of $539,560,908 when completed. Thus, the City and the County would waive receiving ad valorem taxes on the increased tax appraised value of $539,560,908 on these 461 acres for 50 years, estimated to be worth millions of dollars. Eventually, the entire 2,271 acres industrial park would be developed similarly with an increased appraised value of $1,793,178.559, which both the City and the County would waive 80 percent of ad valorem taxes on the $1,703,17178.559 for 50 years, while the other 20 percent would go to the City and County as ad valorem taxes on the property-estimated to be tens of millions of dollars.
At the Commissioners Court meeting, County Judge Ramsey English Cantu noted the County had may legal questions regarding the establishment of the Tax Increment Reinvestment Zone and would need to take them into Executive Session for discussion with the County’s Bond Counsel and General Counsel, but seemed interested in working with the City by requesting a public town hall meeting between the two entities and respective leaders to discuss the issues more closely between them.
County Commissioner Precinct 2 Rossana Rios expressed interest in anything that brought economic development to Maverick County.
County Commissioner Precinct 4 Roberto Ruiz questioned why the City had waited to the last minute to come before the County for participation if they had had the project for 18 months, but stated that the County should work with the City since they both need each other and the County had a big project to come (presumably Puerto Verde) and would need the City’s approval on this project. Ruiz implied that it is best to scratch the City’s back and have the City scratch the County’s back.
County Commissioner Precinct 3 Olga M. Ramos stated she supported everything that brings economic development to the County and its citizens.
Developer Sonia Valdez-Junfin spoke on behalf of the investors of Empire Industrial Park and offered their cooperation with both the City and the County.
Commissioners Court went into Executive Session to discuss Agenda Item No. 52 and upon returning approved a motion to meet with City representatives and hold a town hall meeting to further discuss their joint participation and obligations on the project.
As of press time on Thursday, March 14, 2024, the City and the County representatives had not had the opportunity to meet and hold a public town hall on the subject due to both Mayor Rolando Salinas, Jr. and County Judge Ramsey English Cantu having been out of town most of the week.
