The Dynamic Synergy of the Midtown Tax Increment Reinvestment Zone, Redevelopment Authority and Management District
Midtown Houston was not always a citywide destination where work, life, and play harmonized. In the early 1990s, it was the blighted neighborhood one drove through to get from downtown to the Texas Medical Center. Revitalization began with the creation of the Midtown Redevelopment Authority (MRA)/Tax Increment Investment Zone #2 (TIRZ) in 1995. A few years later, businesses and residents in the area joined to create the Midtown Management District (MMD).
How do the TIRZ and MRA operate?
Operating in tandem, the TIRZ and MRA have Boards of Directors comprised of the same nine individuals. The TIRZ captures the incremental growth in property tax revenue within its boundaries. As property values appreciate, the additional tax dollars are exclusively reinvested within Midtown, propelling its redevelopment forward.
At the heart of Midtown’s transformation is MRA, which executes revitalization strategies, channeling the additional tax revenues generated by the TIRZ back into the neighborhood for improvements in essential infrastructure, including roads, utilities, parks, public spaces, cultural amenities, and affordable housing. A collaborative approach with stakeholders, city departments, and private developers ensures decisions align with community needs, fostering a more attractive, modern, and functional community for all.
What is MMD?
MMD complements the roles of the TIRZ and MRA with ongoing services crucial for day-to-day functionality, such as security, graffiti abatement, beautification, and marketing services. The collaboration ensures that financial resources, regulatory authority, and community-oriented services combine seamlessly in a holistic approach to urban development that addresses immediate needs and long-term sustainability.
Property owners within MMD boundaries pay fees to support district initiatives and services. Governance is by a 17-member Board of Directors appointed by the Mayor and Houston City Council. Members must be Midtown Houston residents, property owners, or agents of property owners.
The TIRZ, MRA, and MMD have proven to be powerful tools for transforming a formerly neglected area into a vibrant, sustainable community. At the time of formation, property in Midtown had an appraised value of $211 million. Today, the appraised value of property in the district is over $1.6 billion.
By strategically reinvesting additional property tax revenue, these mechanisms have facilitated economic growth and infrastructure development while creating a more livable and prosperous urban environment.
Discover more about the Midtown TIRZ, MRA, and MMD here.