Potter County commissioners on Monday, Feb. 23, heard a proposal from Lennar Homes to develop a 1,000-home residential project known as Buffalo Highlands. The project, which would span approximately 160 acres of land owned by the Highland Park Independent School District, includes a request for a 25-year tax incentive agreement following the City of Amarillo’s decision not to participate in the financing structure.
Representatives of Lennar Homes presented the plan, which would involve creating a tax increment reinvestment zone (TIRZ) to reimburse a portion of future property tax growth generated by the development.
“An unfortunate email this morning where the city said they weren’t interested, but yes, we’re still interested in pursuing what that could look like with just the county,” said James McKnight of Ortiz McKnight Law Firm, who spoke on behalf of the developer.
According to McKnight, the development is intended to address the region’s growing housing needs. “Potter County and Amarillo is experiencing tremendous growth right now, and Lennar Homes really wants to meet that growth,” he said.
The proposed homes would range from about 1,400 to 2,700 square feet, with projected prices starting in the high $100,000s and reaching into the $300,000 range depending on size and design. McKnight noted that the project could require as much as $60 million in public infrastructure, including roads, water lines, and utilities.
“Right now, we’re estimating — and this is a high estimation — that this development could be upwards of $60 million worth of public improvements,” McKnight told commissioners.
To help offset these costs, Lennar is seeking reimbursement through a TIRZ structure. Under this mechanism, property tax revenue generated above the current base value would be redirected for a set period to repay infrastructure expenses.
“It is a but-for mechanism,” McKnight explained. “That means that we wouldn’t be able to provide this type of development — at least the homes at the price point that we’re looking at — if it wasn’t for the TIRZ.”
McKnight outlined three possible reimbursement scenarios, including a 25-year agreement that would reimburse 60% of the tax increment throughout the life of the zone. “The third option is the one that we really want to propose,” he said.
Commissioner John Coffee, who disclosed that he serves as vice president of the Buffalo Highlands board, confirmed that he spoke with city officials the morning of the meeting and was told that Amarillo would not participate in a TIRZ agreement.
In an interview the following day, Coffee said that Lennar is under contract with Buffalo Highlands to develop the Highland Park ISD land and clarified that the county’s potential role would be limited to supporting infrastructure, such as water lines.
Coffee noted that the region is already experiencing population growth. “There’s already people that are moving here,” he said. “They know in preparation for that facility.”
He also emphasized the need for additional housing and a stronger tax base. “We need more homes,” Coffee said. “More homes spread over the county would equate to a lower tax burden on our homeowners as a whole.”
Coffee highlighted that the county faces future expenses tied to jail operations and potential facility needs, making long-term revenue growth a priority. “We just need the tax base,” he said.
At the same time, Coffee expressed a preference for seeing the development succeed without relying on county incentives. “I’d like to see that development stand on its own merit,” he said.
During the meeting, commissioners also discussed alternative financing tools. These included public improvement districts and municipal utility districts, which place assessments directly on property owners rather than redirecting ad valorem tax revenue.
As the discussion was an informational item, commissioners took no action on the proposal during Monday’s meeting. The presentation provided an overview of the potential development, financing mechanisms, and possible impacts on county infrastructure and revenue.
If approved, Buffalo Highlands would mark one of the largest residential projects in the area in recent years, contributing to ongoing growth in both Potter County and the City of Amarillo. The TIRZ proposal represents a common tool used to incentivize large-scale development by using future tax revenue to cover upfront infrastructure costs.
At present, the project’s next steps depend on further discussions between the developer and county officials, as well as decisions regarding the TIRZ and alternative financing methods. With housing demand continuing to rise in the region, both commissioners and developers expressed interest in balancing growth with fiscal responsibility.
