DEPARTMENT: CMO
DEPARTMENT HEAD: Peter Zanoni
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lone Star Rail District (“LSRD”) Transportation Infrastructure Zone (TIZ) and Funding Agreement.
SUMMARY:
A briefing on developments regarding the City’s efforts to negotiate a long-term funding agreement for the Lone Star Rail District’s intermunicipal rail project.
BACKGROUND INFORMATION:
The Lone Star Rail Distirct (LSRD) is an independent public agency and political subdivision of the State of Texas. LSRD was established to provide passenger rail and freight service between the San Antonio and Austin metropolitan areas with stops along the Interstate 35 corridor to include Georgetown, Round Rock, Buda, Kyle, New Braunfels, San Marcos and Schertz.
The LSRD was provided a one-time funding amount of $449,500.00 through the City’s Fiscal Year 2016 budget. Since that time, City staff and LSRD representatives have continued to negotiate terms and conditions for a multi-year funding agreement that would commit tax increment generated in a Transportation Infrastructure Zone (TIZ) and general fund dollars over a period of 35 years.
Additional local annual funding was anticipated to be pledged to the LSRD from Bexar County and VIA Metropolitan Transit.
ISSUE:
This item is a briefing on the City’s efforts in negotiating a recommended long-term funding agreement with the Lone Star Rail District for an intermunicipal rail project.
ALTERNATIVES:
This item is a briefing for informational purposes only.
FISCAL IMPACT:
The City is currently negotiating the funding agreement with the Lone Star Rail District. City staff will make a funding agreement recommendation to City Council in early December.
RECOMMENDATION:
This item is a briefing for informational purposes only.