SUBJECT: A motion to set a public hearing date for December 1, 2021 regarding the designation for the SCD BLK 250 Reinvestment Zone for tax abatement purposes.
RECOMMENDATION: A motion to set a public hearing date for December 1, 2021 regarding the designation for the SCD BLK 250 Reinvestment Zone for tax abatement purposes.
SPECIFIC EXPLANATION:
Section 312.002, Texas Tax Code requires cities to adopt tax abatement guidelines and criteria before entering into tax abatement agreements or designating an area as a reinvestment zone. That Section also provides that cities’ tax abatement guidelines and criteria expire after two years. City Council renewed the tax abatement guidelines and criteria on December 16th, 2020 by Ordinance No. 2020-1091. Chapter 312 allows tax abatement agreements within a designated reinvestment zone and requires that the City hold a public hearing before it can adopt an ordinance designating an area as a reinvestment zone. Sec 312.201 allows the governing body of a municipality by ordinance to designate as a reinvestment zone an area, or real or personal property in the taxing jurisdiction or extraterritorial jurisdiction (“ETJ”) of the municipality.
In December 2020, City Council approved, an amendment to Chapter 44 Section 131 of the Code of Ordinances, pursuant to Ordnance No. 2020-1091regarding the tax abatement program whereby the abatement percentage for Platinum LEED Certification was increased to 15% . It is the expectation of the administration that the increased percentage will encourage more developers and builders to participate in the tax abatement program and construct LEED buildings.
The City has reviewed the Company’s tax abatement application. The Company has submitted a registration to the U.S. Green Building Council for Platinum Certification. The proposed date of the public hearing is December 1, 2021. The hearing notice will be published in the Houston Chronicle 7 days prior to the public hearings as statutorily required in Chapter 312.201(d) of the Texas Tax Code.
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Andrew F. Icken, Chief Development Officer