Of the expected future incremental tax revenues generated on-site, a portion of the projected revenues will be recommended to be reinvested into public infrastructure, such as a convention center and convention hotel, roads, drainage, baseball fields and an aquatic center, which will be owned by the city. The remaining funds will go to the city, resulting in a net benefit of more than $62 million in tax revenue, lowering the existing tax burden for citizens.
"The addition of jobs, entertainment, sports and retail space benefits the quality of life for our residents," City of Hutto City Manager Odis Jones said. "It also develops a tourism economy that will impact taxpayers positively by improving quality of life and enhancing the Hutto entertainment climate."
A key result of the study, Project Expansion is expected to bring more than $200 million annually in direct spending to Hutto. Since being re-envisioned by new developer Legacy Development, Project Expansion, which will be anchored by Perfect Game, the nation's largest youth baseball scouting organization, is now expected to bring approximately one million visitors annually to Hutto and drive more than 150,000 hotel room nights annually in the region.
The city will be taking advantage of Public Improvement District/Tax Increment Reinvestment Zone financing for the development. Through a PID/TIRZ structure, taxes attributable to the development are set aside in a fund to finance public Improvements within the boundaries of the zone.
"The importance of this financing tool is it doesn't take existing revenues from the city's coffers or add financial responsibility to the city," Jones said. "Instead, it creates business and growth of more than $1.5 billion, which will generate new taxes to offset the tax burden to our citizens."
Hutto City Council approved Project Expansion in July and will receive an update on the project, including new tenants, at its regular Nov. 7 meeting at 7 p.m. at Hutto City Hall, 500 W. Live Oak St.
Read the full Economic Impact Report here.