Resolution Opposing the City of Austin Providing Taxes to Subsidize South Central Waterfront Development

Whereas, City of Austin staff recommended in December 2021 that the City Council approve a Tax Increment Finance Zone that would divert $278 million in property taxes from general revenue to pay for infrastructure for a private development known as the South Central Waterfront Plan;

Whereas, the Mayor and City Council preliminarily approved the establishment of a South Central Waterfront Development Tax Increment Finance Zone on December 20,2021, and they proposed a public hearing in the Spring of 2022 to set the percentage of the incremental property tax increases to be diverted to the South Central Waterfront Development over the next 20 years or more;

Whereas, Texas law requires that for the city to legally establish a Tax Increment Finance Zone and subsidize private development that it must demonstrate that the “redevelopment would not occur solely through private investment in the reasonably foreseeable future”- i.e., that the South Central Waterfront private development would not be built without a $278 million public or other level of subsidy (Tex. Tax Code, Sec. 311.003(a);

Whereas, Texas law and best practices demand that for such a massive Tax Increment Finance Zone that the city must have clear and compelling independent, financial analysis showing that the developers cannot make a profit if they were to pay for the infrastructure-- which the city has not and cannot do;

Whereas, the $278 million in property tax revenue proposed for the South Central Waterfront Development’s infrastructure (or any other amount of incremental tax increases diverted to the zone) would no longer be available for the urgent needs of our communities, such as public safety, parks, affordable housing, and libraries;

Be It Resolved, that Travis County Republican Party calls on the Austin City Council to oppose the South Central Waterfront Development Tax Increment Finance Zone, require that the developers pay for their infrastructure consistent with what is required of all developers, and keep the future incremental tax increases within the general fund to be allocated through normal channels to meet public needs across the city. 

Approved unanimously 4/19/22