What happened: The City of Midland has created multiple Tax Increment Reinvestment Zones (TIRZ) to support development in downtown, along the 191 corridor, and around the Scharbauer Sports Complex.

Why it matters: TIRZ districts allow cities to set aside future property tax revenue growth to fund infrastructure improvements within the zone, to spur private development, and generate additional tax revenue beyond the initial investment.

Pro: TIRZs allow cities to fund public infrastructure without raising taxes while giving residents ongoing input and greater transparency into how the TIRZ board allocates funds, with council approvals required at every stage.

Con: TIRZs divert future tax revenue from the general budget for decades, reducing flexibility to fund priorities, even though the city could fund the same projects through its regular budgeting process without creating a special zone.

Key points:

  • October 10, 2023: City staff presented the idea of establishing a downtown TIRZ to the Midland City Council.

  • October 24, 2023: Council unanimously approved the first reading of TIRZ No. 2 for downtown Midland. There were no public comments regarding the item.

  • November 14, 2023: Council unanimously approved the second reading of TIRZ No. 2. There were no public comments regarding the item.

  • November 12, 2024: Council approved the first reading of TIRZ No. 3 along the SH 191 corridor. Councilwomen Amy Burkes and Robin Poole voted against it. There were no public comments regarding the item.

  • November 12, 2024: Council unanimously approved the first reading of TIRZ No. 4 around the Scharbauer sports complex. There were no public comments regarding the item.

  • December 17, 2024: Council approved the second reading of TIRZ No. 3, with Councilwoman Poole voting against it.

  • December 17, 2024: Council unanimously approved the second reading of TIRZ No. 4.

  • May 28, 2025: The TIRZ No. 2 (downtown) Board of Directors held its first meeting.

  • June 24, 2025: Council unanimously approved the first reading of the project and financing plan for TIRZ No. 2.

  • July 8, 2025: Council deferred the second hearing of the TIRZ No. 2 project and financing plan.

Go deeper:

  • TIRZ #2 – Downtown Midland: Covers approximately 449 acres in Downtown Midland. The plan anticipates a mix of hotel, multifamily, and retail developments with an estimated total value of $90.9 million. The city projects improvement costs are $124.1 million, covering infrastructure such as parking, utilities, street upgrades, and pedestrian enhancements.

tirz #2

  • TIRZ #3 – SH 191 Corridor (Costco Area): Spans about 1,799 acres along the 191 corridor. The plan is anchored by projects like Costco, auto dealerships, retail, entertainment, hotels, and multifamily housing. The zone has a projected real property value of $109.6 million. The city estimates infrastructure costs are $9.8 million, targeting utilities, roads, parks, and economic development grants.

tirz #3

  • TIRZ #4 – Scharbauer Sports Complex Area: Covers approximately 1,066 acres in the Westridge and Avalon area. Planned developments include an auto dealership, retail, hotel, and multifamily housing valued at $53.6 million. The city projects improvement costs of $38.4 million, covering utilities, streets, pedestrian improvements, parks, and economic development incentives.

tirz #4

Editor’s note: The city created TIRZ No. 1 in 2001 to support development in downtown Midland. Originally set to expire in 2031, council voted to sunset the zone early in 2015, citing slow progress and a lack of development agreements for most of the TIRZ’s lifespan. A total of $5.9 million in incentives was distributed, with the majority spent in the zone’s final year. During its existence, property tax valuations within the zone increased by $225 million. At the time, the council said the TIRZ had fulfilled its purpose and should be disbanded.