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A transportation reinvestment zone (TRZ) is a value capture technique that has the potential of complementing traditional Federal and State transportation funding sources to help local governments close the funding gap, comply with requirements for local matching funds, or pay for other project development costs. Currently, TRZs are available to local governments in Texas and Utah.
This primer’s objective is to help local governments understand the basics of TRZs as a funding source for transportation projects. This primer will:
The following paragraphs provide an overview of the content included in each chapter of the primer to assist the reader in navigating the document.
Chapter 1 introduces the TRZ as a value capture technique that allows local governments to plan and complete transportation improvements. The differences between TIFs and TRZs are explained in this chapter.
Chapter 2 defines basic TRZ concepts, discusses the circumstances that motivate local governments to create TRZs, and summarizes the TRZ legal frameworks in Texas and Utah.
Chapter 3 describes the five-stage implementation process of TRZs in Texas.iii
Chapter 4 identifies which local government units in Texas and Utah are enabled by law to use TRZs as a transportation funding mechanism and outlines the types of transportation projects that can be funded with TRZ revenues. It also presents the main financing options available for TRZ revenue funds along with their advantages and disadvantages.
Chapter 5 discusses four main opportunities and three categories of challenges faced by communities that have used or have considered using TRZs.
Chapter 6 provides a case study that illustrates how the small community of the Town of Horizon City, Texas, used a TRZ to deliver its Eastlake Boulevard Extension Phase 2 project. This is a clear example of how local governments can collaborate effectively to improve regional mobility.
Chapter 7 consolidates the key takeaways of the primer by summarizing the main features of a TRZ, including its role in the delivery of transportation projects and where it is being used, and outlining the opportunities that TRZs can provide local governments seeking new funding tools to improve mobility in their communities.
iii Because of the limited implementation guidance and experience with TRZs in Utah, the information presented in Chapter 3 is based on the legal requirements and implementation experience from Texas.
