The City Council approved an ordinance authorizing the first amended and restated interlocal agreement between the City of Houston, Harris County, Reinvestment Zone No. 3, and the Downtown Redevelopment Authority. This agreement allows Harris County to participate as a taxing unit in Tax Increment Reinvestment Zone (TIRZ) No. 3. Harris County, Precinct 1, will participate at 100% of the funds collected from the Captured Appraised Value of the County's ad valorem tax rate (excluding debt service and certain other entities). Up to 33% of the participation rate will be used for affordable housing, and up to 10% will be retained by Harris County for maintenance and operations of facilities and projects related to the project plan. Additionally, 10% will be retained by the City of Houston. This ILA amends previous agreements from 2001 and 2005. The term of the ILA begins with the countersignature of the City Controller and terminates in tax year 2042. The first tax increment payment from the County is expected by August 31, 2026.