header
Department: Special Projects
Director: Peter Braster, Director of Special Projects
Agenda Item: PISD TIRZ No. 6 ILA
Recommended Action: Approval of Contract/Agreement
end
Item Summary
title
To approve an Interlocal Agreement between the City of Plano and the Plano Independent School District regarding the District's participation in Tax Increment Reinvestment Zone Number Six, City of Plano, Texas; and authorizing the City Manager or designee to execute all necessary documents.
body
Previous Action/Presentation
On June 8, 2026, City Council adopted Ordinance No. 2026-6-3 designating Tax Increment Reinvestment Zone Number Six, City of Plano, Texas (TIRZ No. 6), appointing its Board of Directors, and approving a preliminary Project and Finance Plan in accordance with Chapter 311 of the Texas Tax Code.
On August 4, 2026, the Plano Independent School District (PISD) Board of Trustees executed the Interlocal Agreement presented for Council consideration.
Background
Chapter 311 of the Texas Tax Code allows taxing units other than the City to contribute a portion of their tax increment to a reinvestment zone by written agreement. The City will contribute its tax increment from TIRZ No. 6 to the Zone's Tax Increment Fund, and PISD has agreed to participate under the proposed Interlocal Agreement, which is entered into pursuant to Chapter 791 of the Texas Government Code and Section 311.013 of the Texas Tax Code. The key terms of the Agreement are summarized below.
PISD Contribution. PISD will contribute 50% of the tax increment it collects from its maintenance and operations (M&O) tax levy on the captured appraised value of property within the original boundary of TIRZ No. 6. PISD's interest and sinking (debt service) tax is excluded. PISD's total contribution over the life of the Agreement is capped at $250,000,000.
Community Use of Facilities. As a material community benefit to PISD, the City will allow PISD and the community it serves to make reasonable use of certain facilities to be acquired, constructed, and financed by the City for educational, athletic, extracurricular, civic, and community purposes. Specific terms covering scheduling, operations, security, maintenance, and cost allocation will be set out in separate use agreements negotiated between the City, PISD, and any required third parties, such as a facility developer, owner, or lessee. PISD's use will be at no cost other than its proportionate share of utility, maintenance, and building personnel costs. Exhibit A to the Agreement lists examples of potential benefits, including use as a graduation and district event venue, administrative meeting space, ticketing and community access, career pathways and internship programs, coaching and instructional clinics, a scholarship and grant fund, recognition and branding, a defined number of exclusive-use dates, and a formal review and enforcement process. The final list may omit some of these or include others. If enforceable written use agreements are not executed, PISD may, in its sole discretion, terminate its participation, reduce its contribution to zero, and/or terminate the Agreement.
Changes in Law. If a change in state law or an administrative or judicial interpretation of law results in a negative impact on PISD's state school funding because of its contributions, PISD may reduce its contribution by the amount necessary to offset that impact, up to its full contribution, and may terminate the Agreement if its contribution is reduced to zero.
Zone Expansion. PISD's participation does not extend to property later added to TIRZ No. 6 unless approved by the PISD Board of Trustees.
Governance. PISD may appoint one member to the TIRZ No. 6 Board of Directors. The PISD Superintendent may review and comment on proposed Project Plan amendments before they are submitted to City Council, and any amendment that would increase the percentage or amount of PISD's contribution will not apply to PISD unless approved by the PISD Board of Trustees.
Term. The Agreement begins on its effective date and terminates on December 31, 2052, unless terminated earlier under its terms.
Financial Summary/Strategic Goals
Approval of this Agreement has no immediate financial impact. PISD's contributions will be deposited into the TIRZ No. 6 Tax Increment Fund and used for eligible Project Costs identified in the Project Plan. Annual contributions will depend on growth in captured appraised value within the original zone boundary and on PISD's M&O tax rate, and are limited to a cumulative total of $250,000,000 over the term of the Agreement. The City's obligations under the Agreement are non-monetary and consist of providing PISD use of certain City-financed facilities under use agreements to be negotiated, with PISD responsible for its proportionate utility, maintenance, and building personnel costs.
Approval of this item supports the City's Strategic Plan Critical Success Factor of Residential and Commercial Economic Vitality.
Attachments
Interlocal Agreement