Bonham, Texas -- The Bonham City Council and Fannin County Commissioners Court have overwhelmingly approved the joint creation of a new Tax Increment Reinvestment Zone (TIRZ), TIRZ #3, which represents a major step in spurring accelerated, strategic redevelopment in the community.

The primary focus areas of TIRZ #3, which is located entirely within Bonham city limits, include:

• Downtown Bonham revitalization
• Redevelopment along major transportation corridors including Highways 56, 78, 82 and 121
• Enhancement of key gateways and entry points

TIRZ #3 will be a 30-year zone with equal participation from the City of Bonham and Fannin County, each contributing 50% of the incremental tax revenues generated from the zone’s future, increased property values. Based on current projections, it is estimated that total, 30-year contributions into the Tax Increment Fund (TIF) will be $74.1 million, which would be reinvested entirely within the zone on eligible infrastructure improvements and catalytic redevelopment projects to support economic vitality.

Among the many types of beneficial infrastructure improvements that could be funded from the TIF are sidewalks, trails, pedestrian bridges, roadways, utilities, landscaping, streetscape improvements, and monument and wayfinding signage.

An estimated, additional $74.1 million in incremental tax revenues generated within the zone would be shared by the City and County as general fund revenues in proportion to their tax rates: 61.1% City of Bonham and 38.9% Fannin County. This would mean an estimated, additional $45.3 million in general fund revenues for the City and an additional $28.8 million for the County over the life of the TIRZ.

“We are deeply appreciative of the collaborative effort between the City and County to study and establish this powerful tool,” said Bonham Economic Development Corporation (BEDCO) Executive Director William Myers. “TIRZ #3 will contribute to achievement of our shared economic development objectives, which include realizing our Downtown Master Plan vision, while also attracting and incentivizing quality projects that meet our community’s needs. The creation of a 30-year TIRZ also makes a powerful statement about Bonham’s serious, long-term commitment to maximizing the once-in-a-generation opportunities downtown and along our high-visibility corridors. These are the areas that our residents and visitors experience the most, so we have to establish a community vision and get this right.”

Importantly, the creation of the TIRZ does not change any tax rate and will not take away money from either entity to fund ongoing maintenance or general operations. Ultimately, the TIRZ is designed to benefit local residents by spurring valuable economic development that enlarges the commercial tax base, supporting the future delivery of essential public services and community amenities.

The City of Bonham first publicly announced its intention to develop a plan for the establishment of this TIRZ in 2023. More recently, over the past year, representatives from BEDCO, City of Bonham, Fannin County, and the economic development advisory firm Catalyst Commercial collaborated to prepare a Preliminary Project and Financing Plan for TIRZ #3. This plan was subsequently presented at a public hearing to discuss benefits for the community and for property in the proposed zone, and this hearing also provided interested parties an opportunity to speak for or against the zone’s creation. Based on the preliminary plan and public input, the Bonham City Council and Fannin County Commissioners Court each formally approved the zone’s creation, established governance structures and set the current year as the base year for future, incremental tax revenue calculations.

Click here for a map showing the boundaries of TIRZ #3.

Click here for more information about Tax Increment Reinvestment Zones in Texas.

ABOUT BONHAM ECONOMIC DEVELOPMENT CORPORATION (BEDCO)

Located at the intersection of Sam Rayburn Highway (Hwy 121) and U.S. Highway 82, Bonham, Texas, serves as the county seat of Fannin County and is conveniently positioned just 60 miles north of the Dallas-Fort Worth Metroplex and 30 minutes east of Sherman’s growing tech hub. With its historic downtown, affordable neighborhoods, exceptional quality of life and easy access to major regional centers, Bonham attracts families, professionals and businesses seeking growth and connection throughout North and Northeast Texas.

The Bonham Economic Development Corporation (BEDCO) is a Type B EDC established under the Texas Development Corporation Act of 1997, funded by a half-cent, voter-approved sales tax dedicated to growing Bonham’s economy. With a 2025–26 sales tax budget of $1.1 million, BEDCO is investing in vital infrastructure, upgrades at Jones Field Airport, public parks, and strategic commercial and industrial development to create new jobs. BEDCO also supports downtown revitalization through matching grants that help business owners enhance their properties.

For more information, visit www.cityofbonham.org/163/BEDCO.