Prosper Raises Gates of Prosper TIRZ Cap to $76.7 Million
Prosper Town Council on Nov. 10 raised the maximum construction payment in Tax Increment Reinvestment Zone No. 1 from $58 million to $76,714,144, Community Impact reported.
Prosper Town Council on Nov. 10 raised the cap on construction reimbursements for The Gates of Prosper, lifting the maximum construction payment in Tax Increment Reinvestment Zone Number One from $58 million to $76,714,144, Community Impact reported on Nov. 13. The official Nov. 10 Town Council agenda set the meeting for 6:15 p.m. in the Council Chambers at Prosper Town Hall, 250 W. First Street. The agenda certification and the town’s official Town Hall facilities page both list that address in ZIP code 75078.
Two posted items addressed that ceiling. Item 12 opened a public hearing and asked the council to adopt an ordinance changing TIRZ No. 1’s Project and Finance Plan so the Maximum Construction Payment would stand at $76,714,144. Item 13 asked the council to approve a further change to the existing development and finance contract among the town, the Prosper Economic Development Corporation, and Blue Star Land Development — formally titled the Second Amendment to the First Amended and Restated Development and Finance Agreement — setting the same Maximum Construction Payment of $76,714,144 for Gates of Prosper work under the TIRZ No. 1 Project Plan. Community Impact, writing after the meeting, said the council increased the construction-payment ceiling. Official minutes had not been opened for this report, and Community Impact did not publish a roll-call. This account therefore does not treat the result as unanimous or assign votes to individual members.
How the reimbursement ceiling changed
The official staff report in the Nov. 10 agenda packet states that the Town Council formed TIRZ No. 1 in 2008 to help build infrastructure at The Gates of Prosper, the project Blue Star Land Development is carrying out. In 2014, the town fixed the maximum construction payment available to reimburse the developer at $58,000,000, and it fixed a separate ceiling of $93,079,000 covering that construction payment plus interest.
Staff wrote that construction costs have risen substantially since then and that the current estimate to finish the remaining improvements is $76,714,144. The amendment raises only the construction-payment ceiling to that amount. The $93,079,000 construction-plus-interest ceiling is left in place. Subtracting the 2014 construction cap from the new figure produces an increase of $18,714,144, our arithmetic from the official amounts.
Community Impact quoted Assistant Town Manager Chuck Ewings using the phrase “a great deal of escalation in costs” about the years since the 2014 agreement, and reported that he said a higher construction cap would help pay for those increases.
What remains on the list
An exhibit in the same official packet, an engineer’s opinion of probable construction costs prepared by Blue Star Land and dated Aug. 19, 2026, lists a construction-payment request to date of $52,564,698 and $5,435,302 still remaining under the prior $58 million cap. The exhibit’s summary of remaining TIRZ-eligible project costs totals $27,825,000, of which $24,149,446 is listed as still remaining. Those remaining items include Godwin Parkway (Lovers Lane Section X), Lovers Lane Bridge, Main Street (Section R), Gates Parkway (Section I), Street Section EE, First Street Drainage (Line B-3), and parks and open space. The exhibit notes that the figures are planning estimates, not a bid, and that the engineer had not prepared fully engineered construction drawings for the site.
The staff report on the contract amendment says the town reimburses Blue Star Land, up to the approved maximums, from revenues collected inside TIRZ No. 1. Staff listed the sources as Collin County property tax, the town’s own property and sales taxes, and sales tax collected by the Prosper Economic Development Corporation. If the amendment is approved, staff projected that construction reimbursements to the developer would be completed in September 2033.
The Nov. 10 action raises a reimbursement ceiling on an agreement that has been in place since 2014. It is not a new voter-approved bond, and it does not lift the $93,079,000 cap on construction payments plus interest. Official minutes, if posted later, would be the place to confirm ordinance numbers and any conditions attached to the two items.
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